In a move to attract investment, former President Donald Trump has proposed a new visa program dubbed the “gold card,” which could provide a route to U.S. citizenship for a hefty price of $5 million. This plan is intended to replace an existing system where foreign investors can gain visas by injecting approximately $1 million into a business that employs at least ten individuals. The concept mirrors “golden visa” initiatives from nations like Canada, New Zealand, and Malta, wherein individuals can secure residency by making significant financial contributions or investments.
Details surrounding the qualifications for Trump’s proposed gold card are still pending, but Commerce Secretary Howard Lutnick mentioned that the program is set to replace the current one within two weeks. The president has stated that these cards will be available for wealthy individuals who will contribute substantially to the economy through taxes and job creation, and even companies will be eligible to “buy” these visas.
For decades, the U.S. has offered the EB-5 Immigrant Investor Program, established by Congress in 1990, which aims to foster job creation and entice foreign investments. This program allows investors who put about $1 million into a job-creating enterprise to pursue a visa and eventually, permanent residency. Data from the Department of Homeland Security shows that roughly 8,000 investor visas were issued in the 12 months leading to September 30, 2022.
Globally, golden visa schemes are prevalent and have been implemented by more than a hundred countries, providing affluent investors with residency opportunities. Nations such as the United Kingdom, Spain, and Greece have introduced such initiatives, albeit with varying requirements, including real estate purchases or setting up businesses that create jobs. However, the success of these programs in stimulating economic growth differs from one country to another.
Basil Mohr-Elzeki from Henley & Partners, a consultancy specializing in global citizenship, highlighted that while programs like these can help countries reach investment targets, they do not always have a lasting impact. For instance, Spain discontinued its golden visa program due to concerns over escalating housing costs, and security concerns led to the termination of the UK’s equivalent in 2022.
Although the high cost of Trump’s gold card might initially discourage investment, Mohr-Elzeki believes there could be substantial interest. Details about the program’s framework will ultimately determine its viability. Success will depend more on the process and conditions tied to residency rather than just the financial threshold. Wealthy global individuals often seek flexible living options and may invest in multiple regions for a diverse set of residency privileges.
Should the proposed scheme replace the EB-5 program soon, there is uncertainty regarding its impact on current participants. Typically, transitions like these involve grandfathering existing applicants into the new arrangements; however, the certainty of this happening remains unresolved. While Congress has extended the EB-5 program to 2027, Trump’s vision for the gold card suggests it might bypass legislative approval.
