U.S. Green Card – Requirements, Application, Tax Implications
The United States Permanent Resident Card – better known as the Green Card – has been the most popular identity document among emigrants worldwide for decades. A green card grants its holder permanent residence in the U.S. and the freedom to live anywhere in the U.S., start their own business, and work for any employer. Unlike non-immigrant visas, obtaining a green card does not restrict the holder to working for the company that helped them apply for it.
Employees who are in the U.S. on assignment are often very interested in obtaining a green card. Employers who grant their employees' wishes in this regard can retain their best and most experienced staff while giving them an incentive to stay at the U.S. location for the long term.
How can I apply for a green card for the USA?
Obtaining a U.S. green card involves a multi-step process, which usually looks like this:
Step 1: Submission of the petition by a U.S. employer or U.S. relative
The first step is usually (with the exception of the EB-1 green card) initiated by a U.S. relative (for family-based green cards) or a U.S. employer (for employment-based green cards). The U.S. relative or U.S. employer submits a form with supporting documents about themselves (petitioner) and the person who is to receive the green card (beneficiary). For family-based green cards, this is done using Form I-130, and for employment-based green cards, using Form I-140.
Step 2: Apply for a U.S. immigration visa
If the petition is approved by USCIS, the beneficiary will receive notification and can then apply for an immigration visa in the second step. In Germany, the application is submitted to the U.S. Consulate in Frankfurt/Main, where the beneficiary must attend a personal appointment. In many cases, the visa application is processed in cooperation with the National Visa Center in the U.S. A successfully issued immigrant visa is inserted into the passport. This is usually an entry document valid for six months.
Before the appointment, the applicant must also be examined by a specially authorized medical officer (panel physician). The physician checks, for example, existing vaccinations, performs blood tests, and takes X-rays. Please check with the medical officer of your choice for the current requirements.
Step 3: Automatic green card delivery to a U.S. address
After entering the U.S., the green card itself will be sent to a U.S. address specified during the visa application process without the applicant having to take any further action. However, it may take several weeks or months for the green card to be sent. Upon entry, the U.S. border official stamps the passport of the future green card holder with a stamp identifying them as a lawful permanent resident. The stamped passport serves as a type of temporary green card and is both a travel document and a U.S. work permit.
Green card makes U.S. citizenship possible
A green card gives you the opportunity to acquire U.S. citizenship after three to five years.
It is possible to retain your German citizenship. However, to do so, you must apply for and be granted a retention permit in Germany before acquiring U.S. citizenship.
Requirements for applying for a U.S. green card
A green card grants the holder many rights, but also entails certain obligations:
- Green card holders must move and maintain their primary residence in the U.S., otherwise they risk losing their green card.
- Stays outside the U.S. for less than six months at a time are generally not a problem. However, if you stay abroad for between six months and a year, re-entry as a green card holder can become problematic. In such cases, a U.S. border official may ask questions and, if necessary, request documents proving that you have maintained your center of life in the U.S.
- Persons who have been outside the U.S. for more than one year must generally apply for a special visa in order to re-enter the U.S. as a green card holder. Such a Returning Resident Visa is only issued if special conditions are met, i.e. the longer stay abroad was due to force majeure, such as hospitalization. In practice, you can also try to re-enter without a Returning Resident Visa if you have been outside the U.S. for more than one year. However, such an attempt involves considerable risks and, based on experience, requires prior consultation with a lawyer.
Reentry Permit for green card holders
Anyone who knows before leaving the country that they will be spending a longer period of time outside the U.S. can apply for a reentry permit. This allows them to stay outside the U.S. for up to two years without having to apply for a returning resident visa to reenter the country. However, even holders of a reentry permit must be prepared to describe and justify their stay outside the U.S. in detail when reentering the country.
Green cards and tax liability in the U.S.
Before obtaining a green card, the tax consequences of a U.S. green card – both under U.S. tax law and the tax law of the holder's home country – should also be considered. Anyone who has a green card and has accordingly moved their center of life to the U.S. must, of course, pay U.S. taxes.
Even those who have retained their green card but now live abroad must continue to file U.S. tax returns and, if necessary, pay U.S. taxes. Of course, it is also possible to give up a green card. A formal procedure with a special form is provided for this purpose.
Employment-based vs. family-based green cards
There are basically two categories: employment-based and family-based green cards. The former can be applied for jointly by employers and employees, the latter by family members of U.S. citizens and U.S. green card holders.
However, there are exceptions for certain groups of people:
- Investors can also obtain a green card through the EB-5 investment program.
- People with exceptional abilities can apply for a green card in the EB-1 category via a so-called self-petition, even without a job or job offer.
- People who are engaged in activities that are in the national interest of the U.S. can also obtain a green card in the EB-2 category without an employer.
- For all other people, participation in the green card lottery is also an option.
Employment-based green cards
Employment-based green cards are subject to quotas, meaning that only a limited number of such green cards are issued per tax year. If more applications are received in a category than green cards can be issued, the “excess applications” are placed on a waiting list, meaning that the application is not rejected but is not processed for the time being.
A job offer is required for all employment-based green cards. The only exceptions to this are the first subcategory of category EB-1 (workers with extraordinary ability) and category EB-2, if the applicant's activity in the U.S. is in the national interest.
The potential U.S. employer must also demonstrate that they have not found a U.S. citizen for the position (labor certification). The only exceptions to this are categories EB-1 (all subcategories), EB-2, if, as described, the applicant's activity is in the national interest, EB-4, and EB-5.
Employment-based green cards are divided into the following subcategories:
- EB-1 for
- workers with extraordinary abilities (achievements must be recognized at national or international level)
- outstanding professors and researchers
- multinational executives and managers
- EB-2 for
- advanced degree professionals: Individuals with an occupation for which a U.S. bachelor's degree is a minimum requirement and who have a higher degree than a U.S. bachelor's degree (or a foreign equivalent degree, like a master's or doctoral degree) or a bachelor's degree plus no less than 5 years of work experience
- persons with exceptional ability: Individuals who are able to show exceptional ability in their specialty (national recognition sufficient)
- EB-3 for
- professional workers: Individuals, whose occupation normally requires no less than a U.S. bachelor's degree, and individuals, who have earned such U.S. bachelor's or a foreign equivalent degree
- skilled workers: Individuals, whose occupation requires at least 2 years of training
- unskilled workers: Individuals, whose occupation requires no such training
- EB-4 for
- members of religious denominations or faith communities, who wish to carry on the vocation of a religious worker (pastor, priest, etc.)
- members of religious denominations or faith communities, who wish to carry on the vocation of a religious worker (pastor, priest, etc.)
- EB-5 for
- individuals who intend to invest USD 1.05 million (as of October 2022) in an existing or newly established business, thereby creating ten full-time jobs; if the business is located in an economically disadvantaged region, an investment of USD 800,000 is sufficient
EB green cards vs. Trump Gold Card
In recent years, new policy proposals have increasingly emerged in public discourse, including the so-called Trump Gold Card and the Trump Platinum Card. Both concepts are aimed at extremely wealthy foreigners and provide for payments in the millions directly to the U.S. government. In return, they would grant special residency or tax privileges. While the Gold Card is primarily advertised as a “premium immigration option” for the ultra-wealthy, the Platinum Card – according to drafts known to date – provides for long-term residence in the U.S. with significant tax advantages without the need for a traditional green card.
However, unlike the legally established EB-5 program, these programs are not legally secure in the long term. They are based in part on presidential initiatives or political announcements and, especially in the case of the Platinum Card, could only be implemented with the approval of the U.S. Congress. Experts therefore point to considerable legal uncertainties, as essential parts of immigration law are reserved for Congress and cannot be created solely through presidential measures. Whether, when, and in what form these Trump Cards will ever be legally implemented remains open.
It is crucial for investors to know that these policy proposals do not replace the existing EB-5 system. The classic EB-5 program is regulated by law, has been extended several times, and offers significantly greater legal certainty. In addition, investors who have already submitted a complete EB-5 petition enjoy legal grandfathering. Even if Congress were to change or temporarily suspend the program in the future, applications that have already been submitted or are currently being processed would remain unaffected. Compared to politically uncertain alternative models, this grandfathering clause is a significant advantage for investors.
Family-based green cards
With the exception of the IR category (“immediate relatives”), family-based green cards are also subject to quotas, i.e. only a limited number of such green cards are issued per fiscal year, which means that “surplus applications” are not processed for the time being but are placed on a waiting list.
Family-based green cards are subdivided as follows:
- IR category (immediate relatives) for immediate relatives of U.S. citizens
- IR-1 for spouses
- IR-2 for unmarried children under the age of 21
- IR-3 for orphans adopted abroad
- IR-4 for orphans adopted in the United States
- IR-5 for parents of U.S. citizens who are at least 21 years old
- F category (family preference relatives) for certain other relatives of U.S. citizens or, in some cases, green card holders
- F1 for unmarried children of U.S. citizens who are 21 years old or older
- F2A for spouses and minor children of green card holders
- F2B for unmarried sons and daughters (21 years of age or older) of green card holders
- F3 for married sons and daughters of U.S. citizens
- F4 for brothers or sisters of U.S. citizens who are at least 21 years old
Costs for a U.S. green card
Applying for a green card involves a variety of costs. These include the costs for the necessary medical examination, vaccinations, and fees for applying for an immigrant visa at the U.S. consulate. These fees are quite manageable at USD 220 or USD 325 for the immigrant fee and approximately EUR 500 for the medical exam (as of October 2022). However, it is advisable to consult a U.S. visa expert who will work with the applicant to determine which visa category offers the best chance of success and provide qualified assistance with the application process. The costs vary depending on the amount of consultation required and the green card category.
Buying a green card for the U.S.
A green card for the U.S. cannot simply be purchased. The issuance of most green cards is subject to strict conditions, such as the presence of U.S. family members, a U.S. employer, or special skills and qualifications. The only exception to this is the EB-5 green card, which allows foreigners to obtain a green card through a passive investment in a U.S. company or U.S. Regional Center. In this case, one could speak of a green card purchase in the broadest sense.
Loss of green card status
The green card is the “ticket” to permanent residence in the USA. However, once granted, this does not mean that green card status cannot be revoked. If the green card holder commits a criminal offense or stays abroad for too long, they may lose their green card status. In the event of divorce, green card status may also be revoked under certain circumstances if the green card was limited to two years because the marriage had not lasted two years at the time the spouse entered the U.S.
Advice on U.S. green cards from experienced attorneys
Have you decided to apply for a U.S. green card? Would you like our experienced attorneys to provide professional support with your green card application? We would be happy to provide you with comprehensive advice on applying for a green card and guide you through all the necessary steps. In addition to advising you on visa law and checking whether you can retain your citizenship, our attorneys will evaluate the tax implications of your U.S. naturalization.
Our contact persons are happy to assist you. Please do not hesitate to contact us at any time if you wish to make an appointment for a consultation meeting with one of our experts by e-mail (info@visum-usa.com) or, of course, by phone (+49 69 76 75 77 85 26). We offer our services wordwide.
Contact
Fields marked with * are mandatory.