On Monday, June 11, 2012, U.S. President Barack Obama signed legislation that authorizes Israeli nationals to apply for E-2 (Treaty Investor) non-immigrant visa status, allowing them to live and work in the United States so long as the investment contributes to the U.S. economy. Israel now joins 79 other countries eligible for E-2 visa status.

Prior to the signing of this legislation, an Israeli national requesting an investor visa had to invest between $500,000 to $1 million and create 10 full-time jobs for qualified U.S. workers as part of the EB-5 immigrant investor program. Under the new legislation, the approval process is simplified and the size of investment is substantially reduced. There is no minimum educational level required and no restriction on the type of business. In addition, the investor’s spouse may apply for employment authorization in the U.S. The visa will be limited to two years with a renewal option that depends on the terms of the visa.

Prior to signing by President Obama, bipartisan bills were unanimously approved by the House of Representatives in mid-March and by the Senate at the end of May.

It is important to note that implementation of this bill is conditioned on reciprocity, or legislation of an ordinance in Israel enabling Americans to receive work permits in exchange for investments that would lead to creation of jobs in Israel. Significantly, this condition is contradictory to the current immigration situation in Israel, which states that a foreign citizen may not receive a work permit based on investments. A work permit is granted only for an accumulative and limited period of 63 months. Until Israel passes a reciprocal ordinance, Israelis will not be able to take advantage of the new E-2 visa legislation.