A Green Card is the most coveted status in the US for foreigners but an immigration attorney warned that before getting a Green Card, people must remember that it is not something that they can throw away later; it comes with its own terms and conditions and one has to fulfil all those. Immigration attorney Adrian Pandev said many of his international clients treat a Green Card as a trial run and like a long-term visa, which will expire. But a Green Card holder has to pay taxes in the US on their worldwide income and if they fail, there are repercussions.
Tax
“The foreign company you still own, the rental property back home, the dividends from your investments abroad, all of it is now subject to the US tax system,” Pandev said.
Penalties bigger than tax
“On top of that you pick up a long list of foreign reporting obligations like FBAR, FATCA, and Form 5471 for foreign company equity, for which the penalties for missing a filing are often bigger than any tax you would have actually owed,” the attorney advised.
Have to stay in the US
“There is also a time problem most people don’t think about. If you spend too much time abroad the US government can take the position you abandoned the Green Card,” Pandev explained. One has to stay continuously in the US for six months to maintain the Green Card.
Examination while re-entry
Failing to comply with the 6-month requirement will draw additional scrutiny while you re-enter. “This can mean being pulled into secondary screening when you enter the country or even being referred to an immigration judge to defend your permanent resident status,” Pandev said.
Exit tax
If one remains a Green Card holder for a long time and then decides to give it up, there will be an exit tax to be paid to the US on worlwide assets.“If you are not ready to commit to the US for the long run, a green card may not be the right move,” Pandev said.
