What is E-2 Investor Visa (US)?

How it works

The E-2 visa is a US non-immigrant visa created for nationals of countries that have bilateral investment or commerce treaties with the US. It allows the holder to enter and reside in the US to develop and direct a real, operating business they have invested in. Renewable indefinitely as long as the business operates. Spouses can work; children study but cannot work.

Five conditions must all be met:

1. Treaty nationality — applicant is a national of an E-2 treaty country (~80 countries: most EU, UK, Japan, Korea, Mexico, Canada, Argentina, Egypt, Israel, etc. — but NOT China, India, Russia, Brazil, Vietnam, Saudi Arabia, UAE).
2. Substantial investment — no statutory minimum but case law suggests at least USD 100,000-150,000 minimum for service businesses, higher for capital-intensive operations. Investment must be at risk (committed, irrevocable).
3. Real and operating enterprise — active business producing goods or services. Pure passive investment (real estate held for capital gains) doesn't qualify.
4. More than marginal — the business must generate enough income beyond supporting the investor's family, OR have significant economic impact (employment, exports).
5. Develop and direct — investor must be in a position to develop and direct the business (50%+ ownership, or controlling interest).

Treaty country trick: Grenada

The Grenada CBI passport grants Grenadian citizenship, and Grenada is an E-2 treaty country. Result: a non-treaty national (Indian, Chinese, Brazilian, Russian) can obtain Grenadian citizenship through CBI (~USD 235k donation route) and then apply for E-2 status as a Grenadian national.

This is the only Caribbean CBI with US E-2 access (St Lucia, St Kitts, Antigua, Dominica, Vanuatu, Turkey have no E-2 treaty). The path: Grenada CBI → Grenadian passport → E-2 application from a US embassy → US arrival.

Family

E-2 includes:

• Spouse: also gets E-2 status, can work in the US (any job).
• Children under 21: can study in US public/private schools; cannot work.

Children "age out" at 21 — they lose E-2 dependent status and need their own visa or to leave.

Investment forms

• Cash injection — most common; bank transfer to US business account.
• Inventory and equipment — purchased and held by the US business.
• Active loan to the business only if the investor is personally liable for the loan (recourse against personal assets).
• Goodwill / IP transfer — possible but valuation-sensitive and audit-prone.

Examples

• British founder opens a US restaurant chain. Treaty national (UK is E-2). Invests USD 250k in opening 2 locations. Active business. Hires 8 US employees. E-2 visa granted, renewable. Spouse gets EAD via E-2 dependent status.
• Indian SaaS founder uses Grenada CBI for E-2. Indian national → no E-2 access. Obtains Grenadian citizenship via CBI (~USD 235k donation). Applies for E-2 from US embassy in Grenada based on Grenadian nationality. Invests another USD 200k in a US LLC operating his SaaS business. Effective cost: ~USD 435k (CBI + investment). Now lives in the US under E-2.

Common mistakes

• Treating real estate as qualifying investment. Pure passive real estate holding (rentals collected, no active management) usually fails the active-business test. House flipping with active management can qualify.
• Underfunding "substantial" investment. USD 50-75k for a service business is typically too low; consular officers reject as insufficient. Document the business plan to justify the size.
• Ignoring the marginality test. A solo consultant with USD 100k investment generating only enough revenue to support himself often fails the marginality test.
• Assuming spouse can immediately work. Spouses must apply for an EAD (Employment Authorization Document) after E-2 entry — it's automatic but takes weeks to issue.