EB-5 Regional Center: Gain Permanent Residency by Investment in the United States, including Puerto Rico

Do you and your family want to immigrate to Puerto Rico or elsewhere in the United States? Or perhaps you’re an immigrant already living in Puerto Rico, and you want to gain permanent U.S. residency? One of the best ways to achieve this is through the EB-5 Immigrant Investor Program, which enables you to obtain a U.S. Green Card by investing in the country’s economy.

Although you can invest anywhere in the United States, there are certain benefits to investing in Puerto Rico—including its favorable tax laws. If you live in Puerto Rico or plan on moving there, you might also wish to invest in a project located close to home.

Just like in other parts of the United States, the easiest way to make an EB-5 investment in Puerto Rico is through one of the island’s regional centers. This article explains everything you need to know about this process.

What is the EB-5 Program?

The EB-5 Immigrant Investor Program is a program that allows foreign investors to gain permanent residency in the U.S. by investing in a new commercial enterprise (NCE). If, after two years, you are able to prove that your investment has generated and maintained 10 full-time jobs for U.S. workers, you can apply for an unconditional Green Card.

Read our article on the steps you need to take to obtain an EB-5 visa to learn more about the application procedure.

Primary EB-5 Investment Requirements

Investments made under the EB-5 program are required to meet certain criteria. These include:

✔️ Investing a minimum of $1,050,000 in a project or business venture, or a minimum of $800,000 in an infrastructure project, or in a project or business venture located in a targeted employment area (TEA). All of EB5AN’s projects are located in TEAs and therefore qualify for the lower investment amount.

✔️ Creating at least 10 full-time jobs for qualifying U.S. workers and sustaining these jobs for a minimum of two years. Those who invest through a regional center can count indirect and induced jobs towards job creation. We discuss this in greater detail later in this article.

✔️ Investing in a new commercial enterprise.

✔️ Maintaining the at-risk status of the investment and using lawfully sourced investment funds.

What Is a Regional Center?

EB-5 regional centers streamline the EB-5 investment process for potential EB-5 applicants. Investing through a regional center has several benefits:

Indirect job creation counts toward your total job creation

Investments that aren’t made through a regional center can only count full-time jobs created by their project—direct jobs— toward the required total of 10. If you invest through a regional center, however, full-time jobs generated because of your project—indirect jobs—also count.

Faster Form I-526E approval for rural TEA projects

Once you have invested, you can apply to the EB-5 program by completing Form I-526E. This form requires you to provide details of the project you are investing in. A rural TEA project qualifies for priority processing, meaning your application will likely be processed faster.

Passive management

Project managers acting for or on behalf of the NCE or the job-creating entity that owns and develops the project handle most of the business and fund management on behalf of investors. This is great if you want to avoid the hassle of managing a business yourself.

Why Invest in a Regional Center?

Potential EB-5 investors may select EB-5 investments located anywhere in the United States. However, opting for an EB-5 investment in Puerto Rico offers several advantages:

Residency benefits are granted to all direct and indirect (via a Regional Center) EB-5 investors, irrespective of where in the United States the project is located; however, certain advantages apply to investing and living in Puerto Rico.

• The EB-5 program is one of the fastest ways to gain U.S. permanent residency for the EB-5 investor, their spouse, and their unmarried children under 21 years of age.
• Retired Green Card holders can access their pensions earned abroad and in the United States. They may also qualify for Medicare and other social welfare programs.
• Green Card holders may apply for U.S. citizenship after five years of established permanent residency in the United States.

Employment benefits

• Green Card holders are free to live and work anywhere in the United States.
• An investor residing in Puerto Rico benefits from no income tax on Puerto Rico-source income.
• The EB-5 program does not require a visa sponsor (like a family member) or an employer sponsor.
• Green Card holders do not need an H-1B work visa to work.
• Residents of the mainland United States are eligible for a tax exemption decree if they move to Puerto Rico.

Travel benefits

• Green Card holders can leave and enter the country without being denied reentry. However, some travel restrictions apply.
• A bona fide resident and Green Card holder is free to travel to any part of the United States.

Education benefits

• Green Card holders have free access to public elementary, middle, and high schools and lower-cost in-state tuition at public colleges and universities.
• U.S. residency improves the likelihood of admission to U.S. universities by as much as 350%.
• Green Card holders qualify for in-state tuition, financial aid, and scholarships.
• Permanent residents can work while studying, complete internships, and apply for postgraduate positions.

EB-5 Investors Based in Puerto Rico

EB5AN has EB-5 investment projects available to people already living in the United States, including Puerto Rico. The EB-5 program is the best way to obtain U.S. permanent residency by investment.

If you are a foreign national considering an EB-5 investment, EB5AN can help you. Schedule a call to learn more about currently available EB-5 investment opportunities and join other bona fide residents who have immigrated through the EB-5 program.

How to Evaluate EB-5 Investment Projects

EB-5 investors should evaluate financial and immigration risks when selecting an EB-5 investment project.

EB-5 visa investment capital must be at risk for the duration of the investment. This regulation ensures that investors invest their capital and are not simply “buying” a U.S. Green Card.

This “at-risk” requirement does not mean that EB-5 investors are obligated to invest in “risky” projects, but rather that there must be a chance of loss. Instead, EB-5 investors are recommended to conduct due diligence to minimize their exposure to financial and immigration risk.

In collaboration with Klasko Immigration Law Partners, EB5AN has developed an EB-5 Project Risk Assessment Tool for EB-5 investors. This highly functional, easy-to-use tool guides investors through the initial due diligence process for EB-5 projects, considering both the financial and immigration-related risks.

Download our EB-5 Project Risk Assessment Questionnaire.

Reasons to Immigrate to Puerto Rico

There are many reasons to choose to live in Puerto Rico and invest there.

Cultured cities

Puerto Rico has two main cities:

Very attractive tax incentives

The Puerto Rico government has granted preferential tax treatment to bona fide residents of the mainland United States who relocate to Puerto Rico.

This tax exemption decree incentivizes more workers and business owners to move to Puerto Rico. Puerto Rico tax benefits, which cover capital gains and investment income, have bolstered the island’s economy. It has become a hub for professionals, entrepreneurs, and economic development. It also has a thriving community of new residents from the mainland United States.

Puerto Rico: Population and Income Demographics

According to the U.S. Census, Puerto Rico has a population of approximately 15.5 million people over the age of 16. Approximately 9.3 million of them are in the labor force—of these,8.2 million are employed, and 1.1 million are unemployed.

Puerto Rico: General economic facts

• Puerto Rico extends across 3,515 square miles, with a population density of 952 people per square mile. This places it among the top 40 most densely populated territories in the world.
• The capital of Puerto Rico is San Juan, which is also its largest city and metro area. Puerto Rico’s 2022 gross domestic product (GDP) was $113 billion.
• The main driver of Puerto Rico’s economy is manufacturing (primarily pharmaceuticals, petrochemicals, and electronics), closely followed by the service industry (tourism and hospitality).
• The island’s primary trading partners are the United States, Ireland, and Japan. Puerto Rico has the highest GDP per capita in Latin America.
• Tourism is a significant part of the island’s economy, contributing up to 10% to Puerto Rico’s GDP. International cruise ships frequently visit the island, and many tourists visit cities such as San Juan, Ponce, and Arecibo.

EB-5 Investment: Your Gateway to Permanent Residency in the U.S, including Puerto Rico

With its beautiful scenery, warm weather, and favorable tax laws, the island of Puerto Rico is a great place to live. Investing in the U.S. economy under the EB-5 program is an easy way for foreign nationals to gain permanent U.S. residency status.

Best of all, if you gain citizenship under the EB-5 program, you will be able to live, work and travel anywhere in the United States. Book a free consultation today to find out how EB5AN can help you achieve this.