Relocating to the United States is a major development for expats looking for improved career options, growing a business, or long-term residency. However, identifying the visa that matches your personal needs can be a difficult task – especially when comparing the L-1 and EB-5 visas. These visas fulfill different needs and each come with their own requirements. It is, therefore, important to understand the pros and cons of the L-1 and EB-5 visas before you can confidently identify which option is relevant to you as an expat. In today’s blog, we will compare the L-1 and EB-5 visas, and assist you in establishing which is the most appropriate visa to help on your journey of relocation to the USA. Finding reliable international moving companies in the USA can make or break your relocation experience.
What is the L-1 Visa?
The L-1 Visa is a non-immigrant visa made for intracompany transferees. It allows a multinational company to transfer an employee from an office outside the U.S. to one of the U.S. locations of that company in the U.S. There are two subdivisions of the L-1 Visa:
- L-1A Visa: For managers and executives who are transferring to an office in the U.S. or sent to establish a new office in the U.S, who will also be classified as a manager or executive.
- L-1B Visa: For employees who have specialized knowledge that is integral to the company’s operations.
Benefits of the L-1 Visa
- The processing time is quicker than an immigrant visa, like an EB-5 visa.
- No required capital investment necessary.
- Holders of L-1A visas can directly proceed towards obtaining a Green Card by requesting an EB-1C without having to obtain labor certification.
- Spouses and children of L-1 visa holders (less than the age of 21) can apply for L-2 visas to join their family, and spouses of L-1 holders can work in the U.S. with work authorization.
Limitations of the L-1 Visa
- L-1 is a temporary visa that is valid for seven years (L-1A) and five years (L-1B).
- Employer sponsorship is required meaning losing the job affects legal status.
- The L-1 visa is an option for multinational companies. For this reason, it’s not an ideal choice for those who want to pursue entrepreneurship or investing.
Understanding the EB-5 Visa
The EB-5 visa is an immigrant investor program that provides permanent residency (Green Card) to foreign nationals that make investments in U.S. businesses. The EB-5 program is required to invest a minimum of $1,050,000 in a U.S. business or $800,000 in Targeted Employment Area (TEA) which includes rural and high-unemployment areas.
Benefits of the EB-5 Visa
- Provides permanent residency (Green Card) status to the investor, and immediate family members (spouse and children under 21).
- It is not employment tethered, or requires employer sponsorship.
- Five years after issuance of a Green Card, an EB-5 investor may apply for U.S. citizenship.
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Limitations of the EB-5 Visa
- Requires a high capital investment, making it inaccessible for many.
- Processing time can take several years due to high demand and country-specific backlogs.
- Risk of business failure, which could lead to visa denial or revocation.
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L-1 vs. EB-5: Which Option to Choose?
When considering the differences between the L-1 and EB-5 visas, expats should evaluate multiple factors of their professional background, desired future, and financial means. Here’s a detailed overview to assist:
Purpose:
- If you work for a multinational company and require a transfer to another branch in the United States, the L-1 visa is a great option.
- The EB-5 visa is great for foreign entrepreneurs who would like to attain permanent residency by investing capital into a new business that will create jobs in the US.
Visa Type:
- The L-1 is a temporary non-immigrant visa, which gives an individual permission to stay and work in the United States for a certain number of years.
- The EB-5 is an immigrant visa, which provides for a Green Card providing permanent residency.
Processing Time:
- L-1 visas have a processing time of around 1-4 months for processing, with processing premiums.
- EB-5 processing may take several years of waiting time, especially for citizens of countries with many applicant pools.
Investment Requirements:
- The L-1 level visa does not require any type of financial investment, as it is based on employment within a qualifying company.
- An EB-5 visa requires a minimum financial investment of $1,050,000 or $800,000 in a Target Employment Area, which could be a benefit for high-net-worth candidates.
Job Flexibility:
- With the L-1 visa, you are tied to your sponsoring employer. limited to working for the specific employer who sponsored your visa, and leaving the employer could jeopardize your visa status.
- EB-5 visa holders enjoy employment freedom, they are free to own their own business, work for others, or even retire.
Pathway to Green Card:
- L-1A holders are eligible to apply for a Green Card via the EB-1C category, which is typically a faster process than other employment-based categories, but will still require the approval of USCIS.
- EB-5 Investors are immediately granted a conditional Green Cards upon visa approval, which become permanent after job creation requirements are met.
Family Inclusion:
- Both the L-1 and EB-5 visas allow the spouse of the primary visa holder and dependent children under the age of 21 to accompany them to the U.S.
- EB-5 provides Green Cards to family members, while L-1 family members receive an L2 visa. Only spouses can authorize to work in the U.S., children do not have work permission.
Duration and Renewability:
- The L-1A is valid for a maximum of 7 years and the L-1B is valid for a maximum of 5 years. You cannot renew an L-1 visa beyond these durations.
- EB-5 provides you with permanent residency, and you can apply for citizenship after 5 years.
Flexibility and Freedom:
- As an L-1 visa holder, you are limited to working for the employer that sponsored your visa.
- The EB-5 visa offers full independence, enabling investors them to live and work anywhere in the U.S., without any strings attached.
Overall, the L-1 visa is a strong choice for transitional professionals working in some capacity with a global corporation wanting a move that is temporary, potentially resulting in a Green Card in the future. This is a good option if one has an established career status with a multinational company. The EB-5 visa is also a good option for those with an established career within a multinational company. Trustworthy international moving companies in the USA ensure your belongings arrive safely and on time.
On the other hand, the EB-5 visa allows for more flexibility, long-term benefits, including permanent residency and citizenship. It offers more flexibility and long-term benefits but comes with higher financial risk.
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Be it processing all of your visa documentation, partnering with international shipping companies, coordinating school searches, completing cultural orientation, and finding your home, Help Xpat does it all and personalizes a standard corporate service for your family. Our professional staff will provide peace of mind that all aspects of your relocation are considered. What truly makes Help Xpat unique is our insightful understanding of the challenges that come with being an expat, and our commitment to making your transition as smooth as possible. Whether you are an L-1 transferee or an EB-5 investor, we use a personalized approach and creates solutions that will make your transition feel like an exciting adventure, rather than stressful burden. The top-rated relocation companies in the USA offer immigration guidance, housing support, and cultural orientation.
Additional Considerations for Your U.S. Relocation
While choosing the right visa is a critical step, there are other practical aspects to keep in mind when moving to the U.S. For instance, adjusting to cultural differences, understanding tax obligations, securing health insurance, and selecting the right city or state to live in can significantly impact your overall experience. If you have school-age children, researching the best education options becomes essential too.
Help Xpat can assist in these areas as well. We don’t just help you move—they help you settle, adapt, and thrive. Our support continues beyond the move-in day, guiding you through post-arrival formalities, orientation sessions, and even helping you network with fellow expats. With Help Xpat by your side, you’re not just relocating—you’re setting yourself up for long-term success in the U.S.
Conclusion
Both the L-1 and EB-5 visas pave the way to living and working in the U.S., but the best fit depends on where you are in your professional journey—and where you want to go. If you’re climbing the corporate ladder with a global company, the L-1 visa offers a practical route for temporary relocation with a potential path to permanent residency. But if you’re ready to invest in your future and take control of your American dream, the EB-5 visa brings long-term rewards and the freedom to chart your own path.
Whichever route you choose, don’t go it alone. Help Xpat – USA has your back with relocation support that covers every detail, from visa paperwork to finding your new home. Our personalized services take the chaos out of moving and replace it with confidence and clarity.
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Even the most promising visa can feel overwhelming when you’re navigating the U.S. immigration process solo. Legal nuances, documentation, and sudden changes in immigration policy can derail even the best-laid plans. That’s why having a trusted expert by your side makes all the difference. Help Xpat doesn’t just guide you through the process—we empower you to take control of it. From understanding your eligibility to helping you plant new roots in America, our expert touch ensures your move is as smooth and successful as possible.