Comparing the H-1B Visa, EB-5 Green Card, and U.S. Citizenship

Choosing the right immigration path to the U.S. can be difficult, especially when faced with multiple immigration options with unique opportunities and challenges. This is especially true when it comes to employment-based visas since many of them have similar offerings and slight differences.

The immigration pathway you choose is important because it impacts not just your residency, but your career, family, and lifestyle. This is why knowing the specifics of each option helps you avoid costly mistakes and guides you toward securing your future in the United States of America.

Over time, many foreign nationals have compared the H-1B and EB-5 visas, as they are both viable employment-based immigration options. Ultimately, the visa selected should depend on the individual’s personal and professional goals. However, this article will highlight the features of these two visas and how well they position foreign nationals to obtain citizenship.

The aim of this article is to provide prospective foreign nationals with the clarity they need to make informed immigration decisions.

H-1B Visa: A Temporary Employment Pathway

The H-1B visa is a widely used option for foreign nationals who want to work temporarily in the U.S. The visa requires at least a bachelor’s degree and is tailored for professionals with specialized skills, typically in fields like technology, engineering, and science. The key feature of this visa is that you must have a job offer from a U.S. employer willing to sponsor your visa to be eligible.

H-1B is a nonimmigrant visa that does not, in itself, provide a direct pathway to U.S. permanent residency.

EB-5 Visa: A Direct Route to Permanent Residency

The EB-5 visa, on the other hand, offers a more direct and stable path to permanent residency in the U.S. This visa is designed for foreign investors who are willing to contribute significantly to the U.S. economy.

To qualify, you must invest at least $1,050,000 in a U.S. business or $800,000 in a targeted employment area (TEA), creating a minimum of 10 full-time jobs for U.S. workers. Unlike the H-1B, the EB-5 visa does not require employer sponsorship or specific educational credentials. As such, it’s a unique and attractive option for those with the necessary financial resources.

H-1B vs. EB-5 vs. U.S. Citizenship

This section provides a direct comparison between the H-1B visa, the EB-5 visa and Green Card, and U.S. citizenship status.

Residency Duration and Stability

Residency duration and stability vary greatly between the H-1B visa, EB-5 visa, and U.S. citizenship. The H-1B visa offers temporary residency, initially granted for 3 years with a possible extension to 6 years. However, your residency is directly tied to your employment, making it less stable if your job situation changes. This reliance on employment creates uncertainty for those seeking long-term residency in the U.S.

In contrast, the EB-5 visa provides a more secure pathway to permanent residency. After a two-year conditional period, successful investors can convert to a permanent Green Card, allowing them to live and work in the U.S. indefinitely. This offers greater stability compared to the H-1B visa, as your residency is not dependent on your job status.

U.S. citizenship, however, provides the ultimate stability, ensuring residency without any employment or investment conditions.

Annual Cap

The annual cap allotted to the H-1B and EB-5 visas differ significantly. The H-1B visa is subject to a strict annual cap, with only 65,000 visas available each year, plus an additional 20,000 for advanced degree holders. This cap makes the H-1B visa highly competitive, with many qualified applicants unable to secure a visa due to the lottery system. The unpredictability of this cap adds another layer of uncertainty to the H-1B process.

The EB-5 visa also has a 7.1% per country cap on the number of visas issued annually, creating backlogs for applicants from high-demand countries. These backlogs can lead to delays but are generally more predictable than the H-1B lottery. New investors can also benefit from set-aside visa quotas, which currently do not have any backlogs for any nationalities.

Employment Flexibility

Employment flexibility is another key difference between the H-1B visa, EB-5 Green Card, and U.S. citizenship. The H-1B visa is highly restrictive, tying foreign nationals to a specific employer who must sponsor their visa. Changing employers requires a new H-1B petition, which can be a lengthy and complicated process. This lack of flexibility can hinder career growth and limit applicants’ ability to pursue new opportunities.

An EB-5 Green Card offers much greater employment flexibility. You are not tied to any specific employer, allowing you to work for any company, start your own business, or even retire without affecting your status. This freedom is particularly valuable for entrepreneurs and those seeking diverse career opportunities. EB-5 applicants with approved petitions are also eligible to obtain an employment authorization document (EAD), which allows them to work legally in the U.S. even before receiving their EB-5 Green Card.

Family Immigration Benefits

Family immigration benefits differ between the H-1B visa, EB-5 Green Card, and U.S. citizenship. The H-1B visa allows your spouse and unmarried children under 21 to join you in the U.S. on H-4 dependent visas. However, H-4 spouses face restrictions on employment, and the family’s legal status is tied to the H-1B visa holder’s employment. This can create instability for families, especially if the H-1B holder loses their job.

The EB-5 Green Card provides wider family benefits. Your spouse and unmarried children under 21 can receive Green Cards as derivative beneficiaries, granting them the right to live, work, and study in the U.S. Their legal status becomes independent once they receive their permanent Green Cards, offering greater stability for your family.

U.S. citizenship provides the most favorable family benefits. It allows you to sponsor a broader range of family members, including parents and siblings, to immigrate to the U.S.

Travel and Freedom of Movement

Travel and freedom of movement are important considerations when comparing the H-1B visa, EB-5 visa, and U.S. citizenship. The H-1B visa limits international travel a great deal. H-1B visa holders must have a valid visa stamp to re-enter the U.S., and if their visa expires while abroad, they must renew it to be allowed re-entry into the U.S. These restrictions can complicate travel plans and add stress to international movements.

The EB-5 visa offers more freedom, especially once you receive your permanent Green Card. While awaiting your Green Card, you can apply for advance parole to travel internationally without risking your immigration status. Once you have your Green Card, you can travel freely, although extended absences may risk your residency.

U.S. citizenship provides the ultimate travel freedom, allowing you to travel internationally without restrictions.

Pathways to Citizenship

The pathways to U.S. citizenship vary widely between the H-1B visa and the EB-5 visa. The H-1B visa does not directly lead to citizenship, but you must first secure a Green Card through employer or family sponsorship, which can be a lengthy and complex process. The process is further complicated by the uncertainty due to the visa’s temporary nature.

The EB-5 visa offers a clearer path to citizenship. After obtaining a two-year conditional Green Card and fulfilling the investment and job creation requirements, you can apply to remove the conditions and receive a permanent Green Card. After holding a Green Card for five years (including the initial two-year conditional residency), you become eligible to apply for U.S. citizenship, making the EB-5 visa one of the fastest routes to citizenship.

Return on Investment

The H-1B visa involves relatively low upfront costs, primarily related to the visa application and legal fees. However, it does not offer a direct financial return and comes with significant limitations on employment and residency. These constraints can impact your long-term financial stability and career growth, making the H-1B visa less attractive from an investment perspective.

On the other hand, the EB-5 visa, while requiring a substantial financial investment, offers the potential for significant returns. Successful investments in U.S. businesses can yield financial gains alongside the benefits of permanent residency and eventual citizenship. The EB-5 visa enhances applicants’ long-term financial and personal security in the U.S.

Once U.S. citizenship has been obtained, it offers the highest return on investment, providing unrestricted access to the U.S. job market, travel freedom, and permanent legal status. Therefore, it stands as the ultimate goal for long-term prosperity in the U.S.

Partner With EB5AN on Your U.S. Citizenship Journey

Achieving U.S. citizenship is the main desire for many foreign nationals. It offers immense benefits such as no residency or employment restrictions, unrestricted travel rights, and broad family sponsorship opportunities. While there are different paths to citizenship, the EB-5 visa stands out as a more direct and secure option compared to the H-1B visa.

If you are ready to take the next step towards U.S. citizenship, partner with EB5AN to receive expert guidance tailored to your unique situation. Schedule a free consultation session with our team today.