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Nov 17th, 2020

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Brazil is producing more millionaires — and more interest in acquiring a ‘priceless’ future in the U.S. via EB-5

IIUSA published a story about how EB-5 is becoming more attractive to Brazilian investors.Top reasons cited include the quality of U.S. education (including sports programs for young children), safety, and business opportunities. One Brazilian investor, undaunted by the recent investment increase to $900,000, calls the opportunity to live in the States with his children “priceless.”The article’s author Karla Bledsoe, director of international relations with law firm Genesis Global, says that an investor’s motivation should help guide them to take the direction of either a regional center investment or a direct EB-5 investment. For those looking for opportunities for family members, the regional center program offers many benefits, especially if they don’t want to have a lead role in operating a business.

U.S. education is a key driver and helps offset the cost

The high exchange-rate between the reais, the Brazilian currency, and the U.S. dollar may make some investors stop to carefully consider the investment; but investors see that they will be saving money in the U.S. by not having to pay for the private schools, drivers, and nannies that they would need in Brazil. High-net-worth Brazilians don’t have a high regard for the Brazilian education system and often send their children to private schools from kindergarten. Further, Brazilian schools run on a half-day schedule so a child caregiver is also often required. For affluent families, it’s a costly proposition to raise children in Brazil, and a strong reason to migrate to the U.S.

The rise — and migration — of affluent Brazilians

According to a Global Wealth Report by the Credit Suisse Research Institute, Brazil ranks sixth worldwide in terms of individuals with over $1 million (U.S. dollars) in assets. In 2019, Brazil had 259,000 such millionaires, sharply rising by 19% from 217,000 millionaires just the year before. And this number is expected to continue to rise by 23% to 319,000 by 2024.Little wonder, then, that more Brazilians are interested in EB-5. Not only are many Brazilians attaining millionaire status, many are also choosing to take their money and leave their homeland; in 2017, about 2,000 Brazillian millionaires migrated out of their homeland.

Brazilian investors want to know their money is helping U.S. communities

Marco A. Moreno, a partner at Genesis Global states that most potential EB-5 investors he has worked with are concerned about how their capital is helping the communities their investment project would be located in. “They wanted to know whether their investment creates other business opportunities for U.S. citizens who developed a smaller business ‘across the street,’ such as a coffee shop, from the newly created EB-5 project.”

Brazilians look to be involved — and for high rates of returns

Many Brazilian investors are “hands on” and want to be involved in EB-5 investment project meetings. Thus, some apply for B-1 (Temporary Business Visitor) visas to participate in such activities. Also, Brazilians, partly due to the currency differential, look for high rates of return.

The Brazilian EB-5 market will grow

Investment brokers have seen strong indications that number of Brazilians taking part in the EB-5 program will rise significantly in the coming years. The program has only recently begun to be known in that country and it’s very appealing. So for EB-5 professionals, Brazil represents a large and qualified market. Moreno says this of Brazilian investors: “They love spending money and having a great time on the condition that communities are being developed to create better job opportunities for the youth.” EB-5 sounds like a perfect fit for them. Lindo maravilhoso!Read the IIUSA story “The Country of Brazil, On The Spotlight with EB-5 Immigrant Investors”

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