NEW DELHI: US President Donald Trump has unveiled plans to offer $5 million "gold card" resident permits to foreign nationals — a programme that would also provide a pathway to US citizenship.
In simple terms, a "green card for the rich," Trump announced that the program would launch in two weeks, attracting "very high-level individuals." He suggested that the funds raised could help reduce the national deficit.
This high-cost visa would replace the existing EB-5 immigrant investor visa, which is designed for foreign investors creating jobs in the U.S.
Here's a breakdown of what's changed in the process for wealthy individuals to obtain U.S. residency and eventually citizenship.
What was the EB-5 immigrant investor visa?
Launched in 1990, this offered residency (green card) and eventual citizenship to foreign nationals who invested at least $1.05 million in a new business that created jobs. The investment requirement is reduced to $800,000 if the business is located in a rural area, an area with high unemployment, or is involved in an infrastructure project
Was there a cap on this visa?
The EB-5 program was capped at 10,000 visas annually with 3,000 reserved for investments in high-unemployment areas.
Why is it being changed?
US Commerce Secretary Howard Lutnick said it was being exploited and priced too low. “The EB-5 program was full of nonsense, make-believe, and fraud, offering a low-cost way to get a green card. So, the president decided that instead of continuing this ridiculous EB-5 program, we’re going to end it," he said.
In recent times, challenges in tracing the origins of applicants' funds, along with concerns about potential perceptions of favouritism, were cited against this visa programme.
Who could qualify for a ‘gold visa’?
“They’ll be wealthy and they’ll be successful, and they’ll be spending a lot of money and paying a lot of taxes and employing a lot of people, and we think it’s going to be extremely successful," said Trump.
What is the vetting process?
All applicants will undergo rigorous vetting to ensure they are "wonderful, world-class global citizens," said Lutnick.
Is there any cap on the visa?
There seems to be no definitive limit on the programme, with Trump proposing that the government could sell as many as 10 million visas to help reduce the national deficit.
10 million visas should bring $50 trillion in revenues.
What is their path to citizenship?
Current green card holders, including those benefiting from the EB-5 program, must live in the U.S. as lawful permanent residents for five years before becoming eligible for citizenship. It is not clear whether gold card visa holders will have a shorter wait for citizenship.
Will it impact applicants from other categories?
Over a million Indians are among those waiting for green cards in the U.S., according to US government data
In employment-based categories, the backlog for Indian applicants is projected to reach 2.19 million by 2030. Any new category will add to their waiting period.
How many people have been granted citizenship by the US in recent times?
In the last decade, USCIS has naturalized over 7.9 million citizens, with 818,500 new citizens welcomed in fiscal year 2024.
While this marks a 7% decrease from the previous year, the three-year total exceeds 2.6 million new citizens.
Will wealthy Russians qualify for the gold card?
When asked this question, Trump responded: “Possibly. I know some Russian oligarchs who are very nice people.”
Are there similar schemes in other countries?
Spain and Greece offer similar programmes like the gold card. Countries such as Malta, Egypt, and Jordan allow foreign applicants to obtain citizenship directly through investment. These "golden passport" programs are competitive in the Caribbean, with countries such as Grenada, and St. Kitts and Nevis offering fees as low as $200,000 to $300,000.
What are the tax implications?
Unlike tax havens, a U.S. gold card, while it would likely attract high demand, may come with the drawback of subjecting holders to U.S. taxes. And it is difficult to evade the US tax system.
Are there any possible hurdles in rolling out the gold card?
Watch out. This visa plan could run into some trouble if Trump attempts to push it through without Congressional approval, which he asserts is not needed. Congress is responsible for setting “citizenship qualifications.” For example, it had authorised the EB-5 program that the Trump administration wants to end.
