What Are the Differences Between the E-1 and E-2 Visa?

Many of our clients consult with us about the differences between the E-1 and E-2 visas. Both the E-1 and E-2 classifications are for temporary workers hailing from foreign countries with which the United States holds a treaty – both in commerce and in navigation. The purpose of the E-1 and E-2 visas is so beneficiaries can perform business operations from inside the U.S. and further international commercial relations.

Respectively, the E-1 category is for foreign traders to advance trade-related activities, and the E-2 is for investors with the ability to establish and operate a U.S.-based enterprise.

The list of more than 70 treaty nations can be found on the United States Department of State’s (DOS) website. There, the list includes the accessibility which pertains to the E-1 and E-2 visa categories. 

Please see our resource on the complete list of E-2 Visa eligible countries.

The E-1 Visa

The E-1 Treaty Trader visa is an employment-based, nonimmigrant visa for foreign nationals. It’s a temporary work visa that grants beneficiaries permission to enter the U.S. for the purpose of engaging in international trade. 

The conditions are that the Treaty Trader (or an employee) will have to remain working only within the venture their E-1 visa was approved for. The U.S. government does allow a few exceptions to this rule, which are listed below.

E-1 employees are also permitted to work for the business’ parent company or its subsidiaries, provided the following are maintained:

• There is an established relationship between the company and its subsidiaries
• The employment within its subsidiary is in an executive, supervisory or essential skills capacity
• There have not been any changes made to the terms and conditions of the worker’s employment

The E-2 Visa

Similarly, the E-2 Treaty Investor visa is also an employment-based visa reserved for nonimmigrant foreign nationals. Also a temporary work visa, but it is used for permitting beneficiaries to enter the U.S. for the sole purpose of directing their bona fide business.

The caveat here is that the petitioner will need to demonstrate to the U.S. government how earnest and committed they are to their E-2 visa business investment. To do so, they’ll have to invest a substantial amount of their own capital (no one else’s), which must be irrevocable, and must be placed at-risk. Additionally, they will need to comply with another main requirement, as it is a primary focus of the E-2 visa classification – create jobs for U.S. citizens. Investors are free to otherwise opt to purchase a previously-established qualifying enterprise.

Furthermore, qualified E-2 Treaty Investors are never required to land a job or a sponsoring employer, which means they are also not restricted to any particular career fields.

Since there is no technical standard for a minimum investment for an E-2 visa, the United States Citizenship and Immigration Services (USCIS) officer handling the case uses a proportionality test when determining whether an investment is sufficient. This is done by analyzing the cost or value of the proposed enterprise, and then comparing it to the amount being invested. The resulting percentage indicates the substantiality of the investment. Likewise, it suggests commitment sufficiency by the investor. 

It can be said, though, that any figure less than $100,000 may not be enough. Naturally, E-2 visa petitions are evaluated on a case-by-case basis and must simply make sense commercially.

You may be interested in our post about E-2 visa real estate investments in 2025.

Qualifications for an E-1 Visa

As previously mentioned, the first basic qualification for obtaining an E-1 or E-2 visa is that the petitioner must be from a qualifying country with which the U.S. maintains a treaty of commerce and navigation, or from one with a qualified international agreement.

In order to qualify for an E-1 visa, the foreign national must maintain a substantial trade between their country and the U.S. through the following:

• Goods
• Insurance
• International banking
• Journalism
• Services
• Technology 
• Tourism
• Transportation
• Other qualifying activities 

Qualifications for an E-2 Visa

Qualifying for an E-2 visa are contingent upon the following:

• The petitioner is from a country with which the U.S. has a treaty relationship in navigation and commerce 
• They’ve previously or currently have invested a substantial amount of cash capital in a bona fide U.S.-based business
• The investor is able to establish, direct and work in the business inside the U.S.
• Their investment funds were gained through honest means, which are also irrevocably and permanently committed to the enterprise
• The operational enterprise active in commerce (or was/is an entrepreneurial undertaking)
• The business is expected to generate a substantial profit, exceeding simply the minimum for the investor to make a living for themselves and their family
• The business is expected to stimulate the U.S. economy
• The business has or will create jobs for U.S. citizens
• Demonstration that entry to the U.S. is solely for developing and directing his or her business, unless otherwise purchasing one
• Proof that 50% or more of the enterprise is owned by the investor
• The investor holds operational control
• Or they are an executive, supervisor or otherwise essential employee of the enterprise
• The business must be owned by at least 50% of nationals from the same country as the owner/investor
• The investor or employee is able to reside in the U.S. throughout the E-2 visa duration
• The investor or employee must intend to depart the U.S. upon the completion or expiration of the E-2 visa

Please read our article about how hard it can be to get an E-2 visa.

How to Apply for an E-1 or an E-2 Visa

When applying either for an E-1 Treaty Trader or a E-2 Treaty Investor visa, aspirants will need to file a Petition for a Nonimmigrant Worker (Form I-129) with the USCIS from inside the U.S. If he or she is outside the U.S. at the time of their application, they’ll simply need to file an Online Nonimmigrant Visa Application (Form DS-160) with the DOS. 

Applicants for E-1 and E-2 visas alike will need to attend a visa interview with a consular (or immigrations) officer. The E-1 interview is somewhat simpler as petitioners will explain the nature of their trade-related endeavors and supply documentary evidence that the commercial trade will continue throughout their stay in the U.S.

E-2 visa petitioners, however, will have a more elaborative interview. They’ll need to disclose their personal financial details that not only detail each incoming and outgoing funds, but that indicate their perfect financial ability to establish and run their enterprise.

Of course both types of applicants should also be prepared to answer questions relating to their personal and professional backgrounds, and to substantiate their case to the interviewing officer.

It’s worth mentioning here that qualifying family members traveling to the U.S. with the beneficiary will need to submit the same application, and attend the same interview.

Note, there are several reasons an officer could deny an E-1 or E-2 visa application.

For E-1 Treaty Traders, the most obvious would be that the foreign petitioner’s enterprise does not trade predominantly between their country of origin and the United States. Or, it might be that their business isn’t already operational, or that their trade amount is merely minimal. 

Likewise, E-2 Treaty Investor applicants might see a visa application rejection based on their investment alone. If there is any doubt that the funds weren’t secured through good-faith means, or that their investment amount doesn’t seem permanently irrevocable, the interviewing officer could potentially deny the application altogether.

Period of Stay for the E-1 and E-2 Visas

E-1 and E-2 visas alike have an initial period of stay for up to two years – including status changes and visa extensions. Similarly, extensions for both visa categories can be sought an unlimited number of times. So long as the visa status requirements are upheld.

Please see out article about the E-2 visa requirements for investors.

If you are interested in obtaining an employment-based visa so you may further your professional endeavor in the United States, in order to assist in the improvement of the U.S. economy and advancement of trade, and meet the requirements outlined above, then an E-1 or E-2 visa may be well-suited for you.

Rest assured, if you become an E-1 or E-2 beneficiary, your immediate family members – such as a spouse, or unmarried child(ren) younger than 21 years of age, will be able to accompany you to the U.S. while you further your employment-based endeavors. What’s more, your spouse will most likely be eligible for employment authorization in the U.S.

Frequently Asked Questions

Wrapping Up

Both the E-1 and E-2 visas offer foreign nationals opportunities to engage in U.S. trade and investment. The E-1 visa suits those conducting substantial trade with the U.S., while the E-2 is ideal for investors establishing and operating businesses. Understanding qualifications, investment requirements, and common pitfalls is key to a successful application. Additionally, family members can often accompany the visa holder, with spouses eligible for work authorization. With proper preparation and compliance, applicants can leverage these visas to expand their professional ventures in the U.S.