Video Briefing

Nomad Capitalist: You’re Wrong About Illegal Immigration

Jul 22, 2023Video Briefing12:49Watch on YouTube

The legal and procedural landscape of U.S. immigration is often misunderstood, with several common myths complicating the public perception of how non-citizens interact with the country.

Border and Visa Protocols

Contrary to the perception that Mexico facilitates unrestricted entry into the United States, Mexican authorities have implemented strict protocols, particularly at airports, to prevent unauthorized transit. These measures often involve intensive questioning and back-room screenings for travelers from various countries, including those who may intend to travel onward to the U.S.

Additionally, access to the United States for short-term visits is highly restricted for most of the global population. While citizens of approximately 42 countries may qualify for visa-free entry, the vast majority of the world’s population must obtain a visa to visit for any purpose, including tourism or transit. Unlike many other nations, the U.S. does not offer sterile transit, meaning all passengers—even those only changing flights—must clear immigration and customs, collect baggage, and re-check their items.

Legal Immigration and Residency Timelines

The U.S. legal immigration system is characterized by extremely long wait times for certain applicants, often spanning years or even decades. The efficiency of U.S. residency programs frequently lags behind that of other jurisdictions that offer residency permits in as little as one month to one year.

Specific challenges for prospective residents and investors include:

  • Backlogs: Certain residency categories for nationals from specific countries have experienced backlogs lasting over 20 years.
  • Systemic Inefficiency: Investors using programs such as the EB-5 visa may encounter lengthy administrative delays, sometimes necessitating legal action to force agency review.
  • Fiscal Disadvantages: U.S. residents and citizens are subject to taxation on their worldwide income. Furthermore, the green card program is noted for its lack of flexibility regarding long-term maintenance requirements and the tax complexities associated with exit.

These long timelines and fiscal requirements contribute to a trend where high-net-worth individuals and skilled professionals often prefer alternative countries that provide more efficient residency pathways, lower tax burdens, and fewer administrative hurdles.