Can Indian H-1B Workers Use Their U.S. Salary to Fund an EB-5 Investment?

As an Indian professional working in the United States on an H-1B visa, you may already be familiar with the opportunities and challenges that come with living and working in the U.S. One of the most appealing long-term goals for many skilled workers is obtaining a Green Card, which grants permanent residency and provides the freedom to live, work, and travel in the U.S. without the limitations that come with a temporary work visa.

For H-1B visa holders looking to transition from temporary status to permanent residency, the EB-5 Immigrant Investor Program presents an attractive option. This program allows foreign nationals, including Indian workers, to invest in U.S. businesses and secure a Green Card for themselves and their immediate family members. The key question for many potential applicants is: Can Indian H-1B workers use their U.S. salary to fund an EB-5 investment?

The simple answer is yes, Indian H-1B workers can indeed use their U.S. salary, savings, or other assets to meet the EB-5 investment requirements. However, there are specific guidelines and documentation required to ensure that the funds are sourced correctly. Let’s break it down and explore how H-1B visa holders can structure their source of funds and make the most of this opportunity.

Understanding the EB-5 Investment Requirements

To qualify for the EB-5 visa, an applicant must make an investment of at least $1,050,000 in a new commercial enterprise. If the investment is made in a targeted employment area (TEA), which is broadly defined as a rural area or one with high unemployment, the minimum investment amount is reduced to $800,000. The investment must also create or preserve at least 10 full-time jobs for U.S. workers.

While the amount of the investment is significant, it’s important to remember that the funds used for the investment must be lawfully obtained. This means that any funds you use to meet the EB-5 requirements must be traceable to a legitimate source and must be legally earned or acquired. This is where the salary and assets of an H-1B visa holder come into play.

Can You Use Your H-1B Salary for the EB-5 Investment?

Yes, your U.S. salary can be a legitimate source of funds for the EB-5 investment, as long as you can prove that the salary is legally earned and properly documented. As an H-1B visa holder, your salary is earned in the U.S. and subject to U.S. tax laws. Therefore, using your salary for an EB-5 investment is entirely feasible.

However, to ensure compliance with the EB-5 program’s requirements, you must document the following:

Proof of Legal Employment

You will need to provide evidence that you are employed on a valid H-1B visa. This includes showing your employment contract, income certificate, pay stubs, W-2 forms and tax returns to verify that the salary you are using to fund the investment was earned while working legally in the U.S.

Income Tax Returns

U.S. tax returns for the past few years are a critical piece of documentation. These returns not only show the income you earned in the U.S. but also confirm that you have paid taxes on that income, which further validates that your salary is legally obtained.

Bank Statements and Transfers

You will need to show that your salary has been deposited into your bank account, and ideally, you should maintain a record of the transfers to ensure a clear paper trail. U.S. bank statements are often sufficient to demonstrate the origin of the funds.

Savings and Investment Funds

If you’ve saved a portion of your salary over the years or invested it in assets such as stocks, real estate, or mutual funds, these savings can also contribute to the EB-5 investment. Just like salary, any savings or investments will need to be traced back to their source, which could include your U.S. salary.

Advantages of Using Your U.S. Salary for EB-5 Investment

There are several advantages for H-1B workers who use their U.S. salary to fund an EB-5 investment:

Legal Source of Funds and Simplified Documentation

Using your salary, which is already subject to U.S. laws and taxes, reduces the risk of running into issues related to the source of funds. This makes the process smoother and less complicated.

Simplified Documentation

Since your salary is documented through pay stubs, tax returns, and bank statements, you already have much of the documentation needed for the EB-5 application.

No Need to Transfer Funds From India

By using your U.S. salary, you avoid the complexities and additional scrutiny that may arise from transferring large sums of money from India. This simplifies the process and reduces the time spent on compliance checks.

EB5AN Can Help You Obtain a Green Card

For Indian H-1B visa holders in the U.S., the EB-5 program provides an excellent opportunity to secure a Green Card and establish permanent residency in the country. By using your U.S. salary, savings, or other legally acquired assets, you can meet the investment requirements and create a path toward a brighter future in the U.S.

As long as you can properly document the source of your funds—whether from your salary, savings, or investments—there should be no obstacle to using your income to fund an EB-5 investment. This approach allows you to leverage your hard-earned money in the U.S. to achieve your immigration goals and begin a new chapter in your life.

If you are considering the EB-5 option, consult with an experienced immigration attorney to help guide you through the process and ensure that your investment is structured correctly. Working with seasoned industry professionals is also a good idea.

EB5AN has helped more than 2,300 families from 70+ countries become lawful permanent residents of the United States. Our team has more than a decade of experience and offers clients first-rate, low-risk EB-5 regional center projects with a 100% USCIS project approval rate.

If you would like to know more about how to transition from an H-1B visa to a Green Card through EB-5, book a free call with our expert team today.