US tax before and after you land: what EB-5 families should know
General overview of US tax residency, worldwide income, FBAR and FATCA reporting, and pre-immigration planning questions for EB-5 families.
An EB-5 green card changes more than immigration status. It can also change your tax position, in ways that are easier to manage if you have thought about them before you arrive. This article is a general orientation, not tax advice. The rules are detailed and depend on your country, your assets and any tax treaty, so please work with a cross-border CPA or tax lawyer who understands both systems.
When US tax residency starts
For income tax, an individual who is not a U.S. citizen is generally a resident if they hold a green card (lawful permanent resident status) or meet the substantial presence test, which counts days of physical presence in the U.S. over a three-year period. Whichever happens first can start residency. The start date is not always the day you receive the physical card, so the date matters, and treaty rules may modify the result. The first-year position can be complex.
What changes once you are a US tax resident
| Topic | Non-resident (general) | US tax resident (general) |
|---|---|---|
| Income taxed | Mainly US-source income | Worldwide income |
| Foreign bank accounts | Usually no FBAR | FBAR may be required if aggregate balances exceed the threshold |
| Foreign financial assets | Usually no Form 8938 | Form 8938 may be required above thresholds |
| Estate and gift tax | Generally limited to US-situated assets, with lower exemptions | Generally applies to worldwide assets, with higher exemptions |
| Foreign trusts, companies, funds | Rules differ | Additional reporting and special regimes can apply |
Thresholds and forms change, and they vary with filing status and residence. Please confirm current figures with a tax adviser and the IRS.
Foreign account reporting
Two regimes are commonly discussed. FBAR is filed electronically with FinCEN as Form 114 and relates to foreign financial accounts above an aggregate threshold. FATCA reporting on Form 8938 is filed with the income tax return where foreign financial assets exceed applicable thresholds. They overlap but are not identical, and penalties for failing to file can be significant. Many families find that accounts in Taiwan, Hong Kong or mainland China, including joint accounts and accounts where they have signature authority, are caught. A cross-border CPA can map these before the first filing.
Questions to ask before you become a resident
Pre-immigration planning is a topic for qualified advisers, but the questions below are worth raising early:
- Would it make sense to realise some gains or restructure certain holdings before US tax residency begins? The answer depends on the asset, the local tax rules and the US rules, and it may be that no action is advisable.
- How are your companies, trusts and funds treated under US rules once you are a resident?
- How will your existing wills and estate arrangements interact with US estate and gift tax, and with local inheritance rules?
- How will the EB-5 investment itself be reported, and what documents will you receive?
- Does any tax treaty apply to your situation?
Taiwan and Hong Kong residents in particular often have family and business structures that deserve careful review. For funds you plan to document, see our source of funds page, and for expected costs beyond the investment see our article on total cost.
Keeping it in proportion
Tax is one factor in the overall decision, along with the investment amount ($800,000 TEA or $1,050,000 standard, as of October 2026), the risks of the project and your timeline. Our guide and risk page set out the other parts.
This article is general information only and is not tax or legal advice.
Next step
If you would like us to point you to the right questions to bring to your tax adviser, you can start with our consultation page.
Frequently asked questions
When do I become a US tax resident?
Generally when you become a lawful permanent resident (green card holder) or meet the substantial presence test, whichever happens first. Treaty and other rules can affect this, so ask a cross-border CPA.
Do I have to report accounts outside the US?
US tax residents may need to file an FBAR (FinCEN Form 114) and, depending on thresholds, Form 8938 with their tax return. Thresholds and details change, so confirm with a cross-border CPA.
Should I plan before I land?
Possibly. Some decisions, such as when to realise gains or how assets are held, are easier to consider before US residency begins. This is a question for a qualified tax adviser.
Sources
General information only, not legal, tax or investment advice. Rules and figures are as of the publication or update date and may have changed.