Using Past Expenditures for Your E-2 Visa Application: What You Need to Know

When applying for an E-2 visa, many entrepreneurs wonder if they can use expenditures from their existing business in their home country to meet the investment requirements. This is a common question, especially for those who have already invested significant amounts in tangible assets. Here’s what you need to know about using past expenditures for your E-2 visa application.

To qualify for an E-2 visa, it’s crucial to understand which past expenditures can be considered as part of your investment in the U.S. business. The key criteria are:

1. Tangible Assets: If you have spent money on tangible items such as computers, vehicles, or equipment for your business in your home country, and these items are being brought into the new U.S. business, they can be included in your E-2 visa investment. These expenditures demonstrate a direct and substantial investment in the new enterprise.  The idea here is that they can be donated to the business. You should establish a current value but you could consider using the purchase price.
2. Timeframe: It’s important not to go too far back when including past expenditures. Normally not more than a year.  Generally, expenditures from the past one to two years are acceptable. This ensures that the assets are still relevant and valuable to the new business.
3. The items must relate to and be relevant to the U.S. business.

Not all past expenditures are eligible for inclusion in your E-2 visa application. The following types of expenditures should not be included:

1. Intangible Items: Expenditures on intangible items such as marketing, advertising, or utilities for your existing business in your home country cannot be counted towards your E-2 visa investment. These costs do not represent a direct and substantial investment in the new U.S. enterprise.
2. Non-Transferable Assets: Any spending on assets or services that cannot be transferred to the new business in the U.S. should also be excluded. This includes costs that were purely for the operation of the existing business and do not benefit the new enterprise.

In summary, when applying for an E-2 visa, you can use past expenditures on tangible assets that are being transferred to the new business in the U.S., provided they are recent and relevant. Avoid including intangible costs or expenses that do not directly benefit the new enterprise. By adhering to these guidelines, you can strengthen your E-2 visa application and demonstrate a substantial investment in your U.S. business.

For more detailed information on E-2 visa requirements and other immigration matters, explore our free resources or schedule a consultation with us. Our team is here to assist you every step of the way.