E-1 vs E-2 Visa: Treaty Trader or Treaty Investor?

The E-1 treaty trader visa and the E-2 treaty investor visa come from the same treaties and share most of their rules, but they test different things. The E-1 asks whether your business already carries on substantial trade, more than half of it between the U.S. and your treaty country. The E-2 asks whether you have invested a substantial amount in a U.S. business that you will develop and direct. If your business is about moving goods or services across that border and the trade already exists, look at the E-1; if you are building or buying a U.S. operating business, the E-2 is the usual route.

E-1 vs E-2 side by side

	E-1 Treaty Trader	E-2 Treaty Investor
Legal basis	INA 101(a)(15)(E)(i); 9 FAM 402.9-5	INA 101(a)(15)(E)(ii); 9 FAM 402.9-6
Core requirement	Substantial trade already in progress	Substantial investment at risk in a real U.S. business
Geographic rule	Over 50% of the trader’s international trade must be between the U.S. and the treaty country	None: the business can sell only in the U.S.
Investment test	None	Proportionality test; no fixed minimum
Marginality test	No separate test (trade must be substantial)	Business must be more than marginal
New start-up possible	No, trade must already exist	Yes, if funds are committed and the business is close to operating
Nationality	Treaty national; company at least 50% owned by treaty nationals	Same
Principal’s forms at a consulate	DS-160 plus DS-156E	DS-160 (E-2 investor questions built in)
Stay per entry	Up to 2 years	Up to 2 years
Renewals	No limit while qualifying	No limit while qualifying
Spouse	Work authorized (E-1S)	Work authorized (E-2S)
Children under 21	Derivative status, may study, may not work	Same
Dual intent	No	No
Visas issued FY2024	5,639	55,324

What the E-1 requires

The FAM (9 FAM 402.9-5) sets out the E-1 tests:

1. Treaty country and nationality. You must be a national of a country with an E-1 treaty, and the trading company must be at least 50% owned by nationals of that country.
2. Trade. An actual exchange of qualifying items, such as goods, services or technology, with title passing between parties in the U.S. and the treaty country. The exchange must be international and traceable.
3. Trade already in progress. You cannot get an E-1 to look for a trading relationship. Binding contracts calling for immediate exchange can count as existing trade.
4. Substantial. A continuous flow of numerous transactions over time. Officers focus on volume first and value second; a pattern of many smaller transactions can qualify.
5. Principally with the treaty country. Over 50% of the trader’s total international trade must be between the U.S. and the treaty country. For a branch, trade is measured across the whole foreign company; a U.S. subsidiary is measured on its own.
6. Role. The applicant is the principal trader or an executive, supervisor or essential employee.

Services count as trade when the service itself is the product sold. The FAM lists banking, insurance, transportation, tourism and communications as examples and says essentially any service commonly traded internationally can qualify.

What the E-2 requires

The E-2 test is built around the investment: treaty nationality and 50% treaty ownership, funds that are at risk and irrevocably committed, an amount that is substantial under the proportionality test, a real and operating business that is more than marginal, and an investor who develops and directs it. Our E-2 visa requirements guide covers each element, and the E-2 ownership rules cover partners and control.

Which countries have E-1, E-2 or both

Most treaty countries have both classifications, but not all. According to the State Department’s treaty list (9 FAM 402.9-10):

• E-1 only: Brunei and Greece.
• E-2 only (examples): Grenada, Egypt, Ukraine, Romania, Panama, Morocco, Jamaica and the Czech Republic.
• Both: most others, including Japan, Korea, Canada, the United Kingdom, Germany, France, Mexico and Turkey.

Check your country on our E-2 treaty countries page before planning.

When the E-1 is the better fit

• Import and export companies with an established flow of goods between the treaty country and the U.S., such as a U.S. distribution arm of a manufacturer at home.
• Service businesses selling across the border: engineering, software development, consulting, logistics or tourism services with clients in both countries.
• Trading companies with modest U.S. capital. The E-1 has no investment test, so a company with steady trade but a small U.S. office can qualify.
• Nationals of Brunei or Greece, who have E-1 but no E-2.

When the E-2 is the better fit

• Start-ups and acquisitions where there is no trade history yet.
• Domestic businesses: restaurants, home services, franchises, retail, health care or any business that sells mainly in the U.S. See best E-2 businesses.
• Trade with third countries. A treaty national importing mainly from a different country does not meet the E-1 principal-trade rule.
• Nationals of E-2-only countries such as Grenada or Ukraine.
• Investors who want freedom to change the business model without having to keep a trade ratio.

Evidence: two different packages

An E-1 file is built from trade records: invoices, bills of lading, customs entries, purchase orders, contracts and bank records of payments, with a summary of the number, value and country split of transactions over the past year or more.

An E-2 file is built from investment records: transfers into the company, purchase agreements, leases, equipment invoices, source of funds evidence and a five-year business plan. Our E-2 document checklist lists the typical items.

Rules the two visas share

Both visas share the nationality and 50% ownership rules, two-year admissions, unlimited renewals while the business qualifies, derivative status for spouses and unmarried children under 21 of any nationality, spouse work authorization, and the requirement to intend to depart when status ends. Both allow executives, supervisors and essential employees of the same nationality, and both can be obtained at a consulate or through a change of status with USCIS.

Decision guide

1. Is your country on the treaty list for E-1, E-2 or both? If only one, the choice is made.
2. Does trade with your treaty country already exist, in volume, and make up more than half of your international trade? If yes, the E-1 is worth evaluating.
3. Are you starting or buying a U.S. business, or selling mainly to U.S. customers? Then the E-2 is the natural route.
4. Could both work? Your attorney will usually choose the classification with the stronger, simpler evidence, and some companies keep records for both to keep options open at renewal.

For a wider comparison that includes EB-5, L-1A and O-1, see U.S. investor visa options compared.

Next steps

We work mainly with E-2 investors, and we can help import and export founders structure the U.S. company and organize business evidence for whichever category their attorney selects. Check your profile with the E-2 eligibility checker or contact us to discuss your business.