How to Buy a Restaurant as a Foreigner

How to Buy a Restaurant as a Foreigner

There are two paths a foreign investor can take to buy a restaurant in the U.S.: the EB-5 visa program or the E-2 visa program. The EB-5 visa will allow you to eventually become a U.S. citizen but requires a $500,000 to $1 million investment; the E-2 visa does not provide citizenship but requires a less substantial investment.

EB-5 Visa Requirements

The requirements for qualifying for an EB-5 visa are stringent, and you should work with a business immigration attorney to qualify. These requirements include:

Investment in a new commercial enterprise — if you are buying an existing restaurant, it must either be restructured or reorganized in such a way that a new business results, or it must be expanded so that it realizes at least a 40% increase in net worth.

Create new jobs — your investment in the restaurant must create at least 10 new jobs within two years of your assuming ownership.

Capital investment rules — the minimum qualifying investment is $1 million unless the restaurant is located in a high unemployment (at least 150% of the national average rate) or rural area, where the minimum investment is $500,000.

E-2 Visa Requirements

The requirements to qualify for an E-2 visa include.:

Be a national of a U.S. treaty country. The U.S. has commerce and navigation treaties in place with more than 75 countries. You must be a citizen of one of these countries to be eligible for an E-2 visa.

Have invested or plan to invest in a U.S. business. You must have personal assets at risk for investment in a U.S. business and, if the business is not yet operational, it must be “open for business” soon in order to obtain your E-2 visa.

Intend to run the business yourself. You must have the appropriate skills and plan to direct and run the business yourself.

Make a substantial investment. You must make a substantial investment in your U.S. business. While the government does not provide a precise definition for “substantial,” what is considered to be substantial for purposes of obtaining an E-2 visa will be in proportion to the size of and the type of the business.

Employ others. Your business must be large enough to employ others, not just yourself or members of your immediate family.

Intend to return home. You must intend to return to your home country after your E-2 visa expires (though you can apply for a renewal upon the expiration of the initial visa).

Applying for an EB-5 visa or E-2 visa requires extensive documentation, and should not be undertaken without the counsel of an experienced business immigration attorney.

The North Miami attorneys at Jurado & Farshchian, P.L. are experienced professionals who can assist with your business immigration or residency issues. Please contact us at (305) 921-0440, or email us at info@jflawfirm.com.

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