What is the difference between ‘active investment’ and ‘passive investment’?

When we seek to invest in the United States, especially through the EB-5 program, we encounter two types of investment: ‘active investment’ and ‘passive investment’. Both alternatives aim to attract foreign capital, but they differ in the way the investor is involved in managing the enterprise.

In ‘active investment’, the investor takes an active role in business administration, including decision-making, operation, or daily supervision. On the other hand, in ‘passive investment’, the investor injects capital without involvement in daily management, focusing on financial return.

For investments with immigration implications, such as the EB-5 visa, it is essential to comply with US legislation, seek professional guidance, and choose specialized intermediaries to avoid risks and ensure legal compliance. Understanding these differences facilitates safe and effective decisions.

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.