The motivation of Mexican investors to emigrate to the United States with the EB-5 Program

High-net-worth Mexican investors are seeking new ways to protect and diversify their investments. In this context, the Federal EB-5 Program has emerged as an attractive and viable option for these investors. Here’s why.

In the current political and economic context of Mexico, more and more high-net-worth investors are looking for ways to protect their capital, and an increasing number are opting for the EB-5 Visa Program to obtain a Green Card in the United States.

This government program not only represents an alternative for risk diversification but also a path to growth and stability by offering all the benefits of Permanent Residency for the investor and their family.

Political and Economic Context in Mexico

The recent election of Claudia Sheinbaum from the ruling party as President of Mexico has marked a historic milestone, as she became the first woman to lead the country in over 200 years of independence.

Sheinbaum plans to continue the statist policies of the outgoing president, Andrés López Obrador, which has raised concerns among investors about the business environment and investment landscape in Mexico.

Faced with this scenario, high-net-worth individuals are actively exploring the EB-5 Program as a viable option to diversify their investments and secure more stable business opportunities.

According to Marisa Casablanca, an EB-5 immigration attorney and partner at Casablanca Legal Group, political uncertainty has driven many investors to seek quick options for obtaining permanent residency in the United States.

Before the elections, investors had an inquisitive attitude, exploring different options. However, the current situation has created a sense of urgency among them, who are well-informed about the immigration landscape and see the United States as an opportunity to expand their business relationships and secure their families’ future.

Who are the Mexican EB-5 investors?

In the 2023 fiscal year, Mexican investors obtained the second-highest number of EB-5 visas issued in North America, with 12 visas, only surpassed by Canada.

Additionally, Mexico was the North American country that received the most U.S. employment-based visas last year, with a total of 1,312, including EB-5 visas.

The cultural, economic, and geographical proximity of Mexico to the United States has always been a determining factor for Mexican investors choosing this destination.

The United States offers significant appeal to high-net-worth Mexican families, who often have businesses and properties in both countries and seek the best educational opportunities for their children at American universities.

Ignacio Donoso, an EB-5 immigration attorney and managing member of IA Donoso & Associates, LLC, notes that the recent democratic change in the Mexican government and the near-shoring trends benefiting the local industry also influence the interest in the EB-5 program.

Mexico’s economic prosperity and the relocation of production and assembly jobs from China and other countries to Mexico reinforce this trend.

Opportunities of the EB-5 Program

The EB-5 program has gained popularity due to the efficiency in visa processing following the 2022 Reform and Integrity Act, which allows for faster processing and concurrent filing of Adjustment of Status.

This efficiency is crucial for Mexican investors, who also consider other U.S. visa alternatives, such as the E or L programs, the EB1C visa, the EB2 National Interest Waiver, and the PERM Labor Certification programs.

What is the EB-5 Program and how to apply?

The EB-5 program, also known as the Immigrant Investor Program, allows foreign investors to obtain a green card by investing capital in U.S. projects that generate employment.

To apply, investors must:

• Invest a certain amount of capital depending on the area: The minimum investment is $800,000 USD for Targeted Employment Areas (TEAs), while for non-TEA areas it is $1,050,000 USD.

• The investment must create and preserve at least 10 full-time jobs for U.S. workers within a two-year period, which is usually met by the companies where the investment is made.

• Submit an I-526 petition: This petition demonstrates that the investment meets the program’s requirements.

• Obtain conditional residency: Once the I-526 petition is approved, the investor and their immediate family can apply for conditional residency for two years.

• Remove the conditions: After two years, the I-829 petition is submitted to demonstrate that all requirements have been met and to obtain permanent residency.

Benefits of the EB-5 Program

The EB-5 program offers numerous benefits for Mexican investors, including:

Permanent residency in the U.S.: It allows investors and their families to live, work, and study anywhere in the United States.

Access to quality education: Investors’ children can attend U.S. schools and universities, benefiting from high-quality education.

Business opportunities: Investors can establish and operate businesses in the United States, taking advantage of the favorable economic environment and access to a large and diverse market.

Investment diversification: Investing in U.S. projects provides an opportunity to diversify the investment portfolio and reduce the risk associated with Mexico’s economic and political environment.

Stability and security: Living in the United States offers a more stable and secure environment for investors’ families, especially in times of political and economic uncertainty in their home countries.

Therefore, the EB-5 visa program represents an attractive option for Mexican investors seeking security and stability in their country’s uncertain environment, offering a direct path to permanent residency in the United States.

With a clear application process and significant benefits, this program continues to gain popularity among high-net-worth individuals who wish to diversify their investments and secure a prosperous future for their families.