Many wealthy foreigners who are considering relocating and of obtaining citizenship, rightly concerned about the tax policy of the United States.

Many have heard that the United States collects taxes from the total profits obtained in all countries.

However, for investors on the EB-5 program has several options that facilitate the tax burden in the United States.

On this page there is no possibility to consider the whole range of diverse situations, so You should hire an experienced tax consultant in the US before or during the process of obtaining EB-5 visas.

This page offers a look at some of the General planning policies that may or may not be applicable to Your situation.

Common Misconceptions

First, let us dispel some misconceptions about taxes in the United States:

The Federal tax system of the USA is based on voluntary reporting. States and cities impose their own taxes, which vary from the highest in California and new York until almost the lowest in Texas.

Federal U.S. tax based on income and not on assets.

More than 60% of Americans, especially middle and upper class, hire experts in the field of tax management deductions and legitimate their reduction.

The number of taxes can be legally reduced by many deductions and credits, e.g. business expenses, home office, retirement savings, donations to charitable organizations, etc.

With the help of a competent tax specialist almost all US citizens pay fewer taxes than officially listed in the requirements.

Reduction or Elimination of U.S. Tax on International Income

The U.S. tax code treats a foreign trust established by a Citizen or a Permanent Resident, as the grantor of the trust.

This implies transparency with respect to taxes on income; activity reports must be filed every year and all profits of the trust are taxed.

However, a Permanent U.S. Resident for at least five years prior to immigration, might create a discretionary trust in their own country or jurisdiction with low or zero taxation, to hold the assets for investment and future royalties to U.S. beneficiaries.

Such trust must be created in such a way as to satisfy both the requirements of foreign legislation and the requirements of U.S. law.

If the rule of five years is not met, the new resident will be treated as the grantor of the trust, as if his property had been transferred into the trust at the time when he acquired the right of permanent residence in the USA.

Accordingly, current at the time taxation and filing requirements.

If you are planning to obtain green card in the next five years, such a foreign trust may be established with the participation of the Trustee, adviser or member of the family. Foreign trust created by a foreign Principal, under certain conditions may make tax-free contributions, addressed to U.S. beneficiaries.

U.S. beneficiaries should not have any direct ownership or control over the actions of the Trustee of the trust on making payment