We tell you about the main global markets for American entrepreneurs seeking EB-5 financing for their projects and investments.
China, the United States, South Korea, Vietnam and India are the five largest EB-5 investment markets in the world. American entrepreneurs are often challenged with obtaining financing and luckily for them, there are many alternative financing options.
A common option is the EB-5, through which foreign citizens can finance companies or projects by acquiring permanent residence cards (or Green Cards) in the US for themselves or their family members through an authorized Regional Center.
Investment funds offered through the B-5 Program are often a good source of capital for various US companies. It offers below-market rates, while EB-5 investment capital benefits the US economy and reduces unemployment.
Therefore, business leaders should strive to become familiar with the EB-5 investment industry and identify the most suitable target markets for their offerings.
We leave you below a list with the main EB-5 markets worldwide.
Vietnam is a rapidly developing country with an expanding economy. It has a population of more than 90 million inhabitants and its GDP per capita is around 2,000 dollars.
The Asian country has a high rate of urbanization and its economy is expected to double by 2025, rising in recent years as a booming market for EB-5 investors.
Vietnamese tend to value their family and spend more time at home than other Asians. Which can be an advantage for EB-5 investors who want to invest in Vietnam because they will have more opportunities to interact with the locals during their stay there.
This is compared to other countries like China or India, where people work long hours at their jobs so they don’t have much time left for socializing activities outside of working hours.
In recent times, Brazil has become an important EB-5 market. According to the Credit Suisse Research Institute, Brazil has more than 259,000 high net worth inhabitants, which facilitates capital diversification through foreign investment.
In particular, Brazil is the only South American country within the top five EB-5 markets; more than 80% of all EB-5 visas have been issued to Asian investors, while South American citizens have received only 4.4% to 8.3%.
In fiscal years 2016, 2017, 2018, 2019, and 2020, Brazil’s share of the total number of EB-5 visas was 1.5%, 2.8%, 4%, 5.2%, and 2.6 %, respectively.
3. United States
The US EB-5 investor market can be divided into three segments: family-based investing, employment-based investing, and regional center-based investing.
The United States has more than 700 regional centers that provide support services to investors who want to invest in their projects under the program; among other things, they help them find qualified companies that need a capital contribution and assist them in completing the documents required by the USCIS (United States Citizenship and Immigration Services).
The US is reputed to be the safest investment market in the world; As a result, many foreign investors feel more secure investing in the Americas than in other parts of the world where there may be political instability or other factors that could negatively affect their investments over time.”
The Chinese government has encouraged its investors to invest in US projects, offering them incentives such as tax breaks or investment opportunities and the availability of EB-5 visas.
In this way, Chinese investors can obtain great benefits from US tax regulations, which is why investing in American projects has become more and more common as a way of diversifying the investor’s portfolio.
In that context, mainland China has long been a leading market in the EB-5 investment industry. In fact, Chinese investors received the largest share of EB-5 visas from fiscal year 2016 to fiscal year 2020, and even obtained 75% of the visa pool in fiscal year 2017.
India is the largest EB-5 investment market outside of the United States. And it’s an excellent place to invest because it has a constantly growing population and its economy is consolidating.
On the other hand, the country has a large number of skilled workers and is a good place for technology companies, so its development is assured.
India experienced a pronounced economic boom in the 2010s; the number of Indian HNWIs grew by 63% between 2010 and 2020. As of 2020, there were 698,000 HNWIs in the country. Similarly, India’s share of the EB-5 visa pool grew from just 1.5% in FY 2016 to 17% in FY 2020.
Investing in BAI Capital is investing in the United States
With a presence in the real estate sector in the states of Florida, Texas and New York, BAI Capital specializes in generating value from the acquisition of land to the development of mixed-use projects, such as residences for the elderly, student residences, multifamily buildings. for rentals and mixed use, including condos and retail.
Our mission is to safeguard the capital of the partners and the own capital under the minimum risk exposure. With a safe development and going through all the stages: Land purchase, adjustment of urban zoning, commercial vision in architectural development and management of building permits. Then, we take charge of the capitalization, construction and exit with return of the capital and profits to the partners.
In this way, we guarantee fixed and stable returns for your client portfolio. In addition to having a confidential work protocol with encrypted web forms. Use of protected personal data and private meetings with our agents throughout Latin America.