Video Briefing

Nomad Capitalist: How the US Green Card Lottery Works

Aug 22, 2019Video Briefing6:42Watch on YouTube

The U.S. Diversity Visa (DV) program, commonly called the “green‑card lottery,” allocates 50,000 permanent‑resident visas each fiscal year through a random selection process. It is intended to increase immigration from countries that historically send few newcomers to the United States.

Who can apply

  • Country of birth – Applicants must be born in a nation that is eligible for the current DV round. Countries with high recent immigration numbers (e.g., China, India, the Philippines, Mexico) are excluded.
  • Education or work experience – At the time of application the applicant must have either:
    • a high‑school diploma (or equivalent), or
    • two years of work experience in an occupation that requires at least two years of training or experience.
  • General admissibility – The applicant must satisfy the standard U.S. immigration criteria (no criminal record, no prior immigration violations, etc.).

Application mechanics

  1. Online submission – The DV entry is free and must be completed on the Department of State’s electronic Diversity Visa website during the designated registration window (typically October – November).
  2. Random selection – After the registration period closes, a computer‑generated lottery selects roughly 50,000 winners from the pool of entries (in 2017, more than 22 million people applied).
  3. Follow‑up processing – Selected applicants must submit supporting documents, undergo a medical exam, and attend an interview at a U.S. consulate. Successful candidates receive a Diversity Visa, which they must use to enter the United States within six months.

What the visa provides

  • Permanent residence – Holders become lawful permanent residents (green‑card holders) and may live, work, or study anywhere in the United States.
  • Path to citizenship – After five years of continuous residence, green‑card holders may apply for U.S. citizenship, provided they meet the usual residency and good‑character requirements.

Tax implications

  • U.S. tax residency – Permanent residents are subject to the same tax obligations as U.S. citizens. This includes reporting worldwide income, filing annual federal (and possibly state) tax returns, and disclosing foreign bank accounts (FBAR) and assets (Form 8938).
  • No “non‑immigrant” tax advantage – Unlike many temporary work visas (e.g., H‑1B, L‑1), the DV does not confer a reduced tax burden; green‑card holders must comply fully with U.S. tax law.

Comparison with other immigration routes

Route Typical cost Processing time Investment requirement Tax status
Diversity Visa Free entry; later consular fees 6–12 months after selection None Full U.S. tax residency
Family‑based (spouse, parent, child) Filing fees, possible legal fees 6 months–2 years None Full U.S. tax residency
Employment‑based (e.g., EB‑3) Filing and attorney fees 1–3 years None Full U.S. tax residency
Investor (EB‑5) $900 k–$1.8 M investment 1–2 years Minimum investment Full U.S. tax residency

The DV route is unique in that it requires no financial investment and no U.S. sponsor, but it offers no speed advantage; the lottery is purely chance‑based.

Practical considerations

  • Eligibility check – Verify that your country of birth appears on the current year’s “eligible countries” list before applying.
  • Documentation – Prepare a digital copy of your passport, education certificates, and work experience letters before the registration window opens.
  • Avoid scams – The official DV application is always free; any service demanding payment for entry is fraudulent.
  • Plan for taxes – If you obtain a green card, be ready to establish a U.S. tax filing system and consider professional advice to manage worldwide income reporting.
  • Backup plans – Because the odds of selection are low (≈ 0.2 % in 2017), maintain alternative immigration strategies (family sponsorship, employment visas, or investment programs) if residing in the U.S. is a primary goal.

Bottom line

The Diversity Visa program offers a low‑cost, lottery‑based path to U.S. permanent residence for individuals from under‑represented countries. While it eliminates the need for a job offer or a large investment, applicants must be prepared for the full tax obligations of U.S. residency and should treat the lottery as one component of a broader immigration strategy.