Is the $5 million gold card attractive?

The Golden Card, worth up to $5 million, is replacing the EB-5 investment visa program and is expected to attract global elites to the US, helping to boost the country's economy .

On February 25, US President Donald Trump announced a plan for a new immigration program, called the "golden card." Under this program, investors will have to pay nearly five times the current price to obtain residency and a "path to citizenship."

This program, details of which are expected to be released in two weeks, will replace the current EB-5 “green card” program, which Commerce Secretary Howard Lutnick has called “riddled with absurdities, fabrications, and fraud.”

US President Donald Trump expects to sell 1 million yellow cards and more. Photo: Getty

The White House chief said he "will sell gold cards" and "will value them at around $5 million ( the world's most expensive gold card), and that will give you the privileges of a green card, plus it will be a pathway to citizenship."

According to Skift, the program's purpose is to attract "wealthy, successful individuals." This signals a significant shift in U.S. immigration policy, a move aimed at securing economic benefits even as the administration remains resolute in its tough stance against undocumented immigrants.

Donald Trump's plan comes at a time when the European Union is pressuring member states to roll back or tighten investment-based residency programs that can fuel housing price bubbles and provide marginal benefits to GDP, while also increasing the risk of tax evasion and corruption.

What's so special about a Golden Card (Golden Visa)?

Commerce Secretary Howard Lutnick emphasized that the “yellow card” would effectively replace the “unreasonable” EB-5 program, which currently allows investors to obtain green cards through business investments in the country. Meanwhile, the yellow card allows foreign investors to pour money into projects in the US, create jobs, and then apply for visas to immigrate to the US. “Of course, they will have to go through a vetting process to ensure they are excellent, world-class global citizens,” Lutnick noted. He also added that direct financial contributions would serve as a reasonable path to citizenship, minimizing administrative delays and contributing to a reduction in the US trade deficit.

According to Donald Trump, the yellow card is a "green card plus," and he wants to sell about 1 million yellow cards, equivalent to approximately $5 trillion, and possibly more. "1 million cards would be worth $5 trillion, and if we sell 10 million of these cards, that's a total of $50 trillion," Trump stated at a press conference on February 25th.

Currently, the US has a debt of $35 trillion.

What is the EB-5 program?

The U.S. Congress created the EB-5 program in 1990 to stimulate the American economy through job creation and foreign investor capital. The program, administered by the U.S. Citizenship and Immigration Services (USCIS), provides a pathway to citizenship for eligible foreign investors.

The US EB-5 investment visa program is facing widespread criticism regarding fraud and inefficiency. (Illustration: Shuttlestock)

Under this program, investors (and their spouses and unmarried children under 21) are eligible to apply for lawful permanent residency if they invest $1.05 million in a new commercial enterprise or a minimum of $800,000 in a designated employment area such as a rural area or an area with a high unemployment rate. In addition, this investment must create or maintain at least 10 full-time jobs for American workers, ensuring that the program directly contributes to job growth.

Despite its economic benefits, the EB-5 program has faced considerable criticism regarding fraud and inefficiency. Some lawmakers have likened the program to a "Ponzi scheme" and called for increased oversight and reform.

Currently, China and India are the two countries that consume the most EB-5 visas. Each year, the US issues 10,000 EB-5 visas. Because the waiting time for a green card can be months or even years, visa holders may apply for US citizenship.

What are the impacts of replacing the green card with a yellow card?

An AP report from 2017 indicated that 75% of EB-5 investment visas were granted to Chinese nationals. The U.S. collected at least $7.7 billion and issued more than 40,000 visas to Chinese investors and their families.

According to John Hu, founder of John Hu Immigration Consulting, based in Hong Kong (China), the EB-5 visa is primarily used by residents of Hong Kong and mainland China who own businesses in the US or want their children to study there. Raising the investment threshold to $5 million would be a barrier for many Chinese citizens currently participating in the EB-5 program. The total number of applicants would decrease significantly if the Golden Card replaced EB-5, as global tax obligations are always a concern for the wealthy.

According to Kim Ji Sun, president of Dae Yang Immigration Law Firm in Seoul, South Korea, "this could be a negotiating tactic to increase investment in the US, but considering the amount, I don't think demand from South Korea will increase significantly."

Poorvi Chothani, founder of global immigration law firm LawQuest, said the number of people applying for investment immigration to the US will certainly decrease if Trump's executive order is approved because $5 million is simply out of reach for many.

One factor that could deter interest in Trump's yellow card is the U.S. global tax system: Any green card holder or U.S. citizen is subject to U.S. taxes, even if they do not reside in the U.S.

While the investment required under the new program will be beyond the reach of many who are willing to stake their entire savings to secure a green card for themselves or their children, lawyers and immigration experts say a segment of the ultra-wealthy will still utilize the program due to certain advantages.

According to experts, this additional green card privilege will cancel taxes on any non-US income, which is good news for startup founders and wealthy business owners as it will save them taxes abroad, potentially offsetting the $5 million payment within a few years.

According to President Donald Trump, the yellow card is a revenue-generating opportunity for the U.S. government because "those who can pay $5 million will create jobs" and "they will also have to pay taxes on that." Photo: skift.com

Russell A. Stamets, a partner at the New Delhi-based business law firm Circle of Counsels, said that Trump promised gold card holders that their global income outside the U.S. would not be taxed, a better deal than for U.S. citizens, who are taxed globally. If a business owner has significant income from markets outside the U.S., the tax savings alone could exceed $5 million over several years. However, the current details of this privilege remain unclear.

Some experts argue that the EB-5 program is law and cannot be changed by executive order. "It has to be passed by Congress, and that can't happen overnight. Furthermore, Donald Trump would also have to amend citizenship laws if he were to implement the new yellow card proposal," said Rajneesh Pathak, founder and CEO of Global North Residency & Citizenship.

Arindam Sengupta, co-founder of the education consulting firm Edufund, said that the EB-5 program is a long-term, low-cost source of capital for real estate developers and it's not easy to abolish it anytime soon.

The U.S. Congress will decide the criteria for granting citizenship, but President Trump said the "yellow card" would not require congressional approval. According to Donald Trump, the yellow card is a revenue-generating opportunity for the U.S. government because "people who can pay $5 million will create jobs" and "they will also have to pay taxes on that."

Global trends regarding yellow cards

While the U.S. is experimenting with its “yellow card,” other countries are reshaping their visa programs to attract talent and investment. The United Arab Emirates (UAE) has launched a series of innovative visas, including 10-year residency rights for content creators and “green visas” for environmental innovators. These initiatives are part of a broader strategy to build a dynamic, globally competitive economy by welcoming highly qualified professionals and investors.

Portugal, Canada, and Australia have also revamped their visa programs to attract millions of dollars in investment.

According to consulting firm Henley & Partners, more than 100 countries worldwide offer “golden visas” to wealthy individuals, including the United Kingdom, Spain, Greece, Malta, Australia, Canada, and Italy. However, these programs are not without controversy. Critics argue that “golden visas” create a hierarchical immigration system that favors the wealthy and opens the door to corruption, money laundering, and other security threats.

In response, countries like Ireland and the Netherlands ended their "golden visa" programs in 2023 and 2024. Spain recently voted to abolish the program in April.

MAI HUONG (compiled)

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