The E-2 visa: The path for small business owners to the USA

What the E-2 visa is

The E-2 visa is one of the few ways to establish your own business in the USA with a relatively small capital investment and without waiting years for a green card quota. Legally, it is a nonimmigrant visa for so-called treaty investors – nationals of a country with which the USA has a bilateral trade and investment agreement, who intend to invest a substantial sum in an active US company and manage it themselves.

Unlike work visas such as the H-1B, the E-2 visa has no annual quota and is not subject to a lottery. Unlike the EB-5 investor visa, it does not require a high six- to seven-figure investment. However, the E-2 remains legally a temporary visa: it authorizes residence as long as the business is actively operating, but does not automatically grant permanent residency.

Legal basis: bilateral agreements instead of case-by-case decisions

The E-2 visa exists only between the US and countries with which it has a Treaty of Friendship, Commerce and Navigation or a comparable bilateral investment agreement. Germany has been a signatory to this treaty since July 14, 1956, Austria since May 27, 1931, and Switzerland even since November 8, 1855. For citizens of these three countries, the basic contractual requirement is therefore automatically met – a fact that makes the E-2 one of the more accessible US business visas in German-speaking countries.

Anyone who does not hold the nationality of a contracting state is generally not eligible for the E-2 visa, regardless of their place of residence or residence permit. The complete list of contracting states can be found further down in this guide.

The four basic requirements

For an application to have any chance of success, four conditions must be met simultaneously:

• Nationality of a contracting state. The applicant must be a national of an E-2 contracting state. Residence or a mere residence permit in such a country is not sufficient.
• At least 50% ownership of a US company with the same nationality. The US company must be at least half owned by persons with nationality of the contracting state, or the applicant must have comparable operational control, such as being a managing majority shareholder or co-shareholder.
• A substantial investment that is actually being risked. Capital that has merely been pledged but not yet transferred or invested does not count. Instead, a proportionality relationship between the invested sum and the actual costs of the respective business model is examined.
• Not a "marginal" business. The business must – currently or demonstrably within the next five years – generate more than just the minimum living expenses of the investor family, ideally also by creating jobs for the local economy.

In addition, there are two further requirements that are equally important in practice: The investor must declare the intention to leave the US after the E-2 status expires (8 CFR § 214.2(e)) – although a certain degree of "dual intent" is tolerated in practice – and they must actively manage and develop the company themselves, rather than merely holding capital passively. Mere share ownership or undeveloped land does not fulfill this requirement.

How much capital is actually needed

Unlike the EB-5 investor visa, the E-2 visa does not have a legally defined minimum investment requirement. Instead, USCIS and consular officials apply a proportionality test: the less expensive the overall venture, the higher the proportion of capital actually invested must be relative to the total costs. A consulting or online business that requires a total of $50,000 to set up could be considered "substantially invested" with exactly that amount. A manufacturing facility with total costs of several million dollars would not be considered "substantially invested" with the same amount.

In practice, rough guidelines for each industry have become established among immigration lawyers (as of 2026):

• Consulting, services, e-commerce: US$50,000–150,000
• Restaurant, salon, retail: US$100,000–300,000
• Franchise operation: US$150,000–500,000
• Production, larger retail outlets: US$250,000–750,000

Source: Claxton Law Group; National Law Review.

Investments below $100,000 are possible, but according to practitioners, they are subject to stricter scrutiny because the burden of proof for "substantiality" is higher for lower absolute sums.

What counts as an investment – and what doesn't

Recognized investments include cash deposits, rental deposits for business premises, previously purchased equipment, inventory, and imported goods for business operations. This explicitly includes machinery and tools brought in by the company, provided they are allocated to the business as a contribution in kind and valued accordingly. Therefore, anyone bringing valuable, previously used professional equipment can directly include it as part of their "at-risk" capital, thus requiring less fresh cash to reach the required investment amount.

However, capital that has not yet been transferred, non-binding financing commitments, and loans that are secured by the US company itself as collateral and therefore do not represent a personal liability of the investor are not recognized.

Duty-free import of tools and machinery

Businesses relocating their operations and equipment to the USA can import professional tools, instruments, and machinery duty-free under certain conditions. This option arises from general US customs law (Harmonized Tariff Schedule, Chapter 98) and is tied to professional use abroad, not to a specific visa type.

• The prerequisite is that the tools and machines have already been used abroad for the same professional activity and are intended for the continuation of this activity in the USA.
• Customs may require proof of professional activity, such as a professional certificate or confirmation of previous use.
• Imports are declared using form 3299 ("Declaration for Free Entry of Unaccompanied Articles"), which requires a detailed list with description and value of the items.
• According to reports from removal companies, unaccompanied shipments are subject to a 'reasonable period' around entry; a uniform, legally fixed period is not specified in the relevant customs regulations.

This customs relief applies regardless of the specific visa type – it is generally available to anyone relocating to the USA for professional reasons and is therefore not an E-2-specific privilege, but can directly benefit the investment calculation of the E-2 application, as described above.

Family: Spouse and children on the E-2

The main applicant may only work for their own company named in the application during their E-2 stay – a side job or freelance work outside this framework is not permitted.

Since a USCIS policy change on November 12, 2021, a significantly more generous rule applies to spouses: E-2 spouses are automatically authorized to work, regardless of gender ("employment authorized incident to status"). A separate Employment Authorization Document (EAD) is no longer required—a specially marked I-94 entry form is sufficient proof. The spouse may work for any employer in the US or become self-employed, without being restricted to the primary applicant's business.

Minor children receive a dependent E-2 status, which allows them to attend school in the USA, but not their own work permit – this restriction applies to all minor dependents regardless of the parents' visa type.

Duration, entry and extension

An E-2 visa is often issued for a validity period of up to five years, depending on the reciprocity agreement with the respective country of origin. However, this does not automatically mean a five-year continuous stay: Each individual entry initially grants a stay of a maximum of two years, documented in the I-94 entry form.

The E-2 status can subsequently be extended indefinitely for two-year periods, provided the underlying business remains actively operating and the original requirements are still met. There is no legal limit to the number of extensions – a permanent stay of several decades is theoretically possible on this basis, but always remains legally tied to non-immigrant status.

The "non-marginality" test and the role of the five-year period

A key, often misunderstood component of E-2 law is the so-called "non-marginality" test (9 FAM 402.9-6(E); 22 CFR § 41.51(b)(10)). It requires that the E-2 business either already generates an income above the federal poverty line for the size of the investing family, or that a credible business plan demonstrates that this level will be achieved within five years of commencing business .

Important for understanding: This test is proactive and is reviewed based on the business plan and actual business performance during the initial application and every subsequent renewal – not just after five years as a one-time snapshot. USCIS or the consular officer is responsible for this review, not the tax authorities; submitted tax documents serve only as one piece of evidence of actual business performance. If the review is successful, the E-2 status is extended for another two years – not converted to a different immigration status.

The path to a permanent residence permit

The E-2 visa itself does not automatically lead to a Green Card at any point, regardless of how successful the business becomes or how long the status has already been extended. Legally, it remains a nonimmigrant visa throughout, without a direct path to permanent residency.

Those seeking permanent residency via the E-2 pathway must submit a separate immigration application. The most common options for former or current E-2 investors are:

• EB-5 investor visa: leads directly to a Green Card, but requires a significantly higher investment of US$800,000 in a "Targeted Employment Area" or US$1,050,000 outside of it, combined with the creation of at least ten full-time jobs.
• EB-1C for executives of a multinational company, or EB-2 National Interest Waiver, provided the E-2 business scales accordingly and meets the respective criteria.
• Family-based Green Card, for example in the case of marriage to a US citizen or a person who already has permanent residency.

These pathways are open regardless of E-2 status, but each requires its own, significantly more demanding prerequisites than E-2 itself.

Contracting states: Who is even eligible for E-2?

The US maintains trade and investment agreements with approximately 80 countries whose citizens are eligible for the E-2 agreement. Among the most important signatory states, with their respective entry dates (verified against the official US State Department list as of May 2026), are:

• Germany – E-2 in force since July 14, 1956
• Austria – E-2 in force since 27 May 1931
• Switzerland – E-2 in force since November 8, 1855
• Other important contracting states include: Canada and Mexico (since 1 January 1994), France (21 December 1960), Italy (26 July 1949), the Netherlands (5 December 1957), Spain (14 April 1903), the United Kingdom (3 July 1815), Japan (30 October 1953), South Korea (7 November 1957), Australia (27 December 1991), New Zealand (10 June 2019), Belgium (3 October 1963), Denmark (10 December 2008), Sweden (20 February 1992), Finland (1 December 1992), Norway (18 January 1928), Poland (6 August 1994), the Czech Republic and Slovakia (1 January 1993), Portugal (15 March 2024), and numerous other states. in Europe, Asia, Africa and Latin America.

A complete list of countries eligible for the E-2 visa can be found in the appendix.

Source: travel.state.gov, Treaty Countries; 9 FAM 402.9-10; compilation verified via uslegalvisa.com and Claxton Law, as of May 2026. The list changes occasionally – always check the current version on travel.state.gov before applying.

Important exceptions and special cases

Not every European or economically significant country is a party to the treaty. Hungary, Cyprus, Malta , Iceland, and Liechtenstein , among others, do not have an E-2 agreement – anyone holding only one of these nationalities cannot rely on E-2, even with an EU passport. Greece is a special case: it has an E-1 trade agreement (since 1954) but no E-2 investment agreement – Greek nationals can therefore enter as Treaty Traders (E-1), but not as Treaty Investors (E-2). Globally, some of the largest economies are also completely absent from the list: India, Brazil, mainland China (only Taiwan is a party), Russia, the United Arab Emirates, Saudi Arabia, and South Africa.

Those who do not hold the nationality of a contracting state essentially have three alternatives: acquiring a second nationality eligible for E-2, taking the direct route via the significantly more capital-intensive EB-5 investor visa, or switching to other visa categories such as L-1 (intra-group secondment), O-1 (extraordinary skills) or H-1B (specialist professions).

The practical process of submitting an E-2 application

An E-2 application typically follows these steps:

• Business idea and location selection. First, a viable, non-marginal business model is developed – often in sectors with manageable capital requirements such as consulting, trade, gastronomy or crafts.
• Establishment of the US company. The company is registered in a US state as a corporation or partnership, with the ownership structure meeting the 50% state citizenship requirement.
• Capital transfer and documentation. The investment capital is actually transferred or converted into tangible assets (lease agreement, equipment, purchase of goods) and fully documented – this is the key proof for the "at-risk" requirement.
• Preparation of a robust business plan that demonstrates, in particular, the non-marginality of the business based on realistic sales and profit forecasts over a period of up to five years.
• Application process. Depending on whether the applicant is already legally residing in the USA or applying from abroad, the application is made either as a change of status at USCIS (Form I-129) or as a visa application at the responsible US embassy or consulate in the applicant's home country (Form DS-160 plus DS-156E).
• Interview and decision. Applications submitted from abroad are usually followed by a personal interview at the consulate, during which both the business substance and the non-immigrant intent of the applicant are examined.
• Entry and ongoing operations. After the visa is granted, entry is permitted with an initial stay of up to two years, documented in the I-94 form, with the possibility of unlimited extensions.

Conclusion

The E-2 visa is one of the most accessible instruments for citizens of a treaty state—including Germany, Austria, and Switzerland—to establish their own business in the USA: no minimum investment is required, no annual quota is imposed, a spouse automatically receives work authorization, and existing business equipment can be brought in as part of the investment, sometimes duty-free. At the same time, it remains a nonimmigrant visa throughout: those seeking permanent residency must pursue a separate immigration route, such as EB-5, EB-1C, EB-2 NIW, or a family-based Green Card, regardless of E-2 status. For those who approach both aspects—business development and residency—with realistic expectations, the E-2 offers a viable and long-term renewable model for entrepreneurial emigration.

This guide was prepared in August 2026 using primary sources from the U.S. Department of State, USCIS, and U.S. Customs and Border Protection. Immigration rules and reciprocity agreements are subject to change; before submitting an application, you should consult with a law firm specializing in U.S. investor visas to confirm the current status. This guide does not constitute legal advice.

Full list of countries eligible for the E-2 visa: