A Green Card remains one of the most coveted immigration statuses in the United States for foreigners. However, an immigration attorney has warned that people must understand its long-term responsibilities before accepting it.
Immigration attorney Adrian Pandev said many of his international clients treat a Green Card like a trial run or a long-term visa that can be used for some time and then easily given up. But, according to him, that is not how permanent residency works.
He said a Green Card comes with serious terms and conditions, including major tax and residency obligations.
One of the biggest responsibilities is taxation. A Green Card holder is generally required to pay taxes in the United States on worldwide income.
“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.
He also warned that the penalties for missing foreign reporting requirements can be very high.
According to him, Green Card holders may have to comply with foreign asset and income reporting rules such as FBAR, FATCA and Form 5471 in cases involving equity in foreign companies.
He cautioned that the penalties for failing to file these forms can sometimes be bigger than the actual tax owed.
Pandev also said many people do not fully understand the time-related obligations that come with permanent residency.
If a Green Card holder spends too much time outside the United States, the US government may take the position that the person has abandoned permanent resident status.
He explained that such individuals may face additional scrutiny while re-entering the country. They could be pulled into secondary inspection at the airport or, in serious cases, may even be referred to an immigration judge to defend their permanent resident status.
Another major issue is the exit tax. If a person remains a Green Card holder for a long period and later decides to give it up, they may become subject to US exit tax on worldwide assets.
Pandev said people should think carefully before accepting permanent residency if they are not ready to commit to life in the United States for the long term.
“If you are not ready to commit to the US for the long run, a Green Card may not be the right move,” he said.
