E-2 Visa for Entrepreneurs: The Path Through European Citizenship

Starting a business in the United States is a concrete goal for thousands of Brazilians who already operate businesses in Brazil or have accumulated capital to start from scratch. The E-2 treaty investor visa is the most flexible legal instrument for this transition, but it operates within specific rules of the Immigration and Nationality Act and the Foreign Affairs Manual that must be fully understood before any investment decision. Without this foundation, allocated capital can be wasted on a structure that fails to meet consular standards.

What the E-2 Visa Is and How It Works

Defined under Section 101(a)(15)(E)(ii) of the Immigration and Nationality Act, the E-2 is a long-term nonimmigrant visa for nationals of countries that maintain a treaty of commerce and navigation with the United States. It authorizes the holder to enter the U.S. solely to develop and direct the operations of an enterprise in which they have invested or are actively investing a substantial amount of capital.

Brazil is not on the official list of treaty countries published by the Department of State. Although diplomatic discussions about including Brazil have been ongoing for years, no ratification exists as of 2026. This absence excludes Brazilian passports alone from direct E-2 eligibility, but opens a widely used indirect route: acquiring or having recognized European citizenship from a treaty country.

Treaty Countries Relevant to Brazilians

• Italy – citizenship by descent (jus sanguinis) with no generational limit until recent reforms; the most widely used route for Brazilians.
• Spain – recognition through the Democratic Memory Law for grandchildren of exiles, with a specific application window.
• Portugal – naturalization through residency or the Law of Return for descendants of Sephardic Jews.
• Germany – citizenship reacquisition for descendants of those persecuted by the Nazi regime.
• United Kingdom – for Brazilians with qualifying British family ties.

The Concept of Substantial Investment

Federal regulations set no fixed minimum dollar amount, but establish the substantiality test under 22 CFR 41.51 and the Foreign Affairs Manual 9 FAM 402.9. The investment must be proportional to the total cost of acquiring an operating business or to the cost of establishing a new viable enterprise. The lower the total cost of the operation, the higher the proportion the applicant must have invested.

In consular practice, projects under $100,000 face skepticism and require robust documentation to pass the test. Investments between $100,000 and $200,000 are common for service franchises, small restaurants, and e-commerce operations. Industrial operations, larger franchise networks, and commercial real estate ventures often exceed $500,000. The actual threshold is industry-specific and determined on a case-by-case basis by the consular officer.

Lawful Source of Funds Requirement

Every dollar invested must have documented origins. The E-2 file includes Brazilian income tax returns, bank statements, proof of asset sales, profit distributions from a previous company, or documented inheritance. Capital obtained through a loan only counts as investment if secured by the applicant’s personal assets – never by the assets of the business being acquired.

Bona Fide Business and the Marginality Test

The target enterprise must be real and operational – not a speculative structure or a vehicle for moving assets. Documents such as commercial lease agreements, municipal licenses, employee contracts, and active bank activity are essential to support the bona fide enterprise case.

The marginality rule is an additional filter: the business cannot exist solely to generate minimum subsistence income for the investor and their family. It must have present or demonstrably potential capacity to generate significant economic contribution, typically measured by job creation for U.S. workers. A five-year realistic financial projection with a hiring plan is a mandatory element of the E-2 business plan.

Rights and Limitations of E-2 Holders

The visa is initially issued for up to five years for Italian nationals, three months for some other nationals, and intermediate periods depending on the applicable bilateral treaty. Admission at the border grants up to two years of status, renewable indefinitely as long as the business remains operational and continues to meet the original criteria.

Benefits for the Family

• The spouse receives E-2 dependent status and has automatic work authorization in the U.S. under the 2022 regulation, with no need to separately file for an EAD.
• Unmarried children under 21 receive derivative status and may attend public and private schools.
• When a child turns 21, they lose derivative status and must transition to another visa – typically the F-1 student visa.

What the E-2 Does Not Offer

The E-2 is categorically a nonimmigrant visa. It does not lead directly to a Green Card, and the holder must maintain nonimmigrant intent at every renewal and entry. Migration to permanent residency is possible but requires a separate route – typically EB-5 (immigrant investor), EB-2 NIW (if the investor’s professional profile warrants it), or family sponsorship when applicable.

The other structural limitation is renewal. Each extension revisits the original requirements: the business remains operational, the investment remains at risk, the holder continues in a position to develop and direct, and marginality remains absent. Businesses that stagnate, shed employees, or operate only to support the family’s subsistence face a real risk of non-renewal.

Sectors With Strong Approval Track Records

Consular analysis does not formally favor specific sectors, but some segments have historically shown higher approval rates by combining clear documentation and predictable job creation: established franchise networks with auditable operations manuals, restaurants in already-licensed commercial locations, small and mid-sized manufacturing companies with a B2B client base, and technology companies with a revenue model already proven in their home market.

The E-2 is not an off-the-shelf product – it is a legal architecture that must be built around a real business plan, an impeccable source of capital, and a long-term strategy aligned with the entrepreneur’s and family’s life goals. Brazilians who start the process without this systemic vision end up discovering, too late, that the E-2 demands executive discipline far beyond that required by a simple relocation decision.

Victoria Harper

Editor-in-Chief

Meet the author

Leading journalism and editorial content at Visto n’ Visa, Victoria helps make immigration topics clear, trustworthy, and easy to understand. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.