Alien Investor meaning :
In common parlance, an alien investor refers to a foreign individual investing funds in a foreign country to seek better investment opportunities. However, in immigration law, this qualification rather defines an individual who injects a specified sum into the economy of a country in exchange for a visa or permanent residency. Their investment contributes to the economic development of the host country.
Based on the circumstances of the investment, there are three types of alien investors:
- Direct Foreign Investor: This category includes businesses or individuals who invest directly in foreign enterprises or specific projects abroad.
- Foreign Institutional Investors: These are financial entities such as pension funds or investment firms that place funds in foreign markets.
- Individual Foreign Investors: These are individuals who invest their own money in businesses or real estate abroad. They make independent investment decisions and may have various investment objectives.
In immigration law, the term “foreign investor” is widely used in the context of citizenship or residency by investment programs. This legal tool enables individuals to obtain citizenship or permanent residency in a country in exchange for significant economic investments, typically in real estate or local businesses. These programs are particularly prevalent in Caribbean countries as well as in some European countries such as Spain, Malta, among others.
In the United States, foreign investors can obtain a green card by applying for the EB-5 Immigrant Investor Program. This is a legal mechanism aimed at boosting the American economy by attracting foreign capital. Its main objective is to create jobs for American workers and stimulate economic growth in economically disadvantaged areas. To be eligible for these programs, a minimum investment of $900,000 in a new American enterprise creating at least 10 permanent jobs for qualified American workers, or $1.8 million in an existing business, is required.