With an economic size of $2.7 trillion, Texas consistently ranks at the top of global investors’ radar as one of the most dynamic states with the highest growth potential in the United States. Having an economic volume larger than developed countries like Canada, Australia, and Spain, Texas certainly stands out not only for its natural resources and strategic location but also for its innovative business environment, tax advantages, and robust infrastructure. In this article, we will examine the advantages of investing in Texas, the state’s economic strength, and the incentives offered to investors. If you’re looking for a place to shape your future in the United States, Texas might be the right address.
The Power of the Texas Economy: A Global Giant
According to 2024 data, Texas holds the position of the world’s eighth-largest economy. Moreover, the state protected its title of “America’s largest exporter,” which it has maintained for 23 years, by achieving record-level exports in 2024. Attracting investor interest with the tax advantages it provides, the state is also the country’s leader in energy production. When it comes to investing in Texas, the state is a pioneer in renewable resources like solar energy; with its 367-mile coastline, 26 commercial airports, 22 interstate highways, and 35 foreign trade zones, it is practically a logistics hub.
With a population of approximately 32 million, Texas hosts a civilian workforce of over 15.7 million. Thanks to this robust workforce, the state has been the clear leader in job creation on a national scale over the past three years. This is one of the factors that significantly whets the appetite of investors looking at investing in Texas. Hosting hundreds of companies on the Fortune 500 list, Texas is also expanding its global network day by day with more than 50 foreign trade offices. The “Made in Texas” brand is now recognized as one of the world’s strongest manufacturing brands, making investing in Texas much more attractive.
Investing in Texas: Texas’s Infrastructure and Logistics Advantages
Texas’s strategic location makes it a unique hub for investors. The 23 ports in the Gulf of Mexico provide the state with direct access to international trade networks. Thanks to its advanced road and rail systems, the transportation of goods takes place quickly, safely, and efficiently. This strong infrastructure has attracted $2.17 trillion in foreign direct investment to Texas over the past decade and created more than 189,000 new jobs.
When it comes to investing in Texas, one of the first investment instruments that comes to mind is undoubtedly technology investment. Indeed, Texas continues to maintain its leading position in the country in high-tech exports. Small businesses also hold a significant share in the economic ecosystem of the state, which has ranked first in technology exports for the past 14 years. Countries such as Mexico, Canada, the Netherlands, South Korea, and China are among Texas’s largest trading partners. The fact that giant companies like Samsung, Toyota, Siemens, and Airbus are investing in Texas is one of the biggest indicators of this success.
Reasons for Investing in Texas
While it’s easy to get lost in the numbers, each one provides a clear answer to the question “Why invest in Texas?” Standing out not only for its economic size but also for its business-friendly policies, Texas offers an attractive business environment for investors. In the words of Governor Greg Abbott: “We want businesses to succeed in Texas because when businesses succeed, Texas succeeds.” Selected as the “State with the Most Suitable Business Environment” by Site Selection magazine in 2024, Texas has earned this title for the 20th time in total. Texas stands out as the state receiving the most foreign direct investment in the US. According to WalletHub, Texas is one of the top 10 states for starting a new business and also ranks high on the Milken Institute’s “Best Performing Cities” list. Additionally, with its 16 distinguished universities, it hosts some of the country’s most prestigious educational institutions. This situation provides not only an economic advantage but also an important educational benefit for those considering investing in Texas.
Incentive Programs: Opportunities for Investors
From an investor’s perspective, Texas stands out not only for its economic dynamism but also for the comprehensive incentive programs it offers. These programs, run by the Texas Economic Development and Tourism Office (EDT), include broad opportunities such as grants, tax reductions, and favorable financing options. Grants like the Texas Enterprise Fund (TEF), Skills Development Fund (SDF), and Governor’s University Research Initiative (GURI) provide millions of dollars in support for public infrastructure, workforce training, and research projects.
Among the tax incentives, Chapter 313 and the Texas Economic Development Act offer significant exemptions in property and franchise taxes while specifically supporting renewable energy and R&D investments. On the financing side, the Texas Small Business Credit Initiative (TSBCI) and State Small Business Credit Initiative (SSBCI) encourage small businesses with low-interest loans and guarantee programs. Additionally, special tax advantages offered by local governments and programs like Creative Industries Tax Incentives for creative sectors make the investment environment even more attractive.
Which Visas Do You Need When Investing in Texas?
For foreign entrepreneurs planning on investing in Texas, selecting the right visa type is one of the most critical steps in the investment process. The United States offers investors various visa options suitable for different objectives and capital levels.
E-2 Investor Visa
The E-2 visa is intended for citizens of countries that have trade and investment treaties with the US. Under this visa, an investor can establish a business in the US with “substantial capital” or become a partner in an existing business. Texas’s low tax rates and business-friendly environment offer an ideal option for E-2 investors.
EB-5 Investor (Green Card) Visa
The EB-5 program, which requires higher capital, provides investors with the opportunity to obtain a green card directly. Individuals who make an investment of at least $800,000 USD and create 10 full-time jobs can obtain permanent residency rights. The presence of numerous approved regional centers in Texas makes this visa type more accessible.
L-1 Intracompany Transfer Visa
If the investor is already the owner or manager of a company operating in another country, they can open a branch or affiliated company in the US with an L-1 visa. This visa type is particularly suitable for companies with international expansion goals. Texas’s strong infrastructure and international connections provide a significant advantage for L-1 investors.
The right visa strategy supports not only the sustainability of your investment but also your long-term wealth creation goals in the US.
Lawyer in Texas: Your Trusted Partner in Investment Processes
At Onal Gallant Law Office, with our Texas office and experienced legal team, we provide comprehensive legal consulting services to entrepreneurs who wish to invest in Texas. In the state’s dynamic investment environment, we offer reliable guidance in areas such as company formation, contract drafting, immigration processes, and real estate transactions. For anyone looking to start or expand their business operations in the United States, we combine local expertise with global legal experience.
Conclusion
Texas is not just a state; it is a hub shaping the future of the global business world. Investors can expect vast economic potential, strong infrastructure, and a highly skilled workforce. With its strategic location, innovative incentives, and dynamic labor market, Texas offers great opportunities for investors of all scales. If you are planning to invest in Texas, you can contact us to evaluate the legal and strategic aspects of the process.