The green card and tax residence
The US taxes residents on worldwide income. Green card holders are generally treated as US tax residents, so income from any country may need to be reported to the US.
Common items to handle
- Worldwide income: salary, dividends, rent and business income.
- Foreign financial accounts: some must be reported separately.
- Interests in foreign companies: may involve extra reporting.
What you can do before immigrating
- List all your assets and income, and understand what will need reporting once you have a green card.
- Review how your companies and investments are held.
- Discuss the timing of your green card and your asset arrangements with a US tax professional.
A special point for EB-5 investors
EB-5 applicants must prove the lawful source of their investment, and the transfer path is reviewed too. Organising your source of funds and tax planning can happen together, avoiding duplicated work.
This article is general information, not tax advice. Please consult a qualified tax adviser about your circumstances.