For years, countries worldwide have used golden visas to draw in high net worth individuals. These visas typically grant residency in exchange for an investment, usually in property, stocks or bonds.
Recently, Donald Trump announced his version for the United States: The gold card visa, which will give people citizenship in the US in exchange for a $5 million investment.
This is set to replace the EB-5 investor visa, which the country has had in place since 1990.
What Is The Gold Card Visa?
Trump’s gold card visa is a residency-by-investment programme designed to help wealthy people gain citizenship to the US.
With the current EB-5 visa, applicants have to invest between $800-$1.05m as well as creating 10 full-time jobs.
The gold card visa is based purely on a cash injection, making it technically easier to attain…as long as you have the cash.
Trump has noted that companies as well as people can buy gold cards, helping them bring in talent from elsewhere. The creation of the visa has been suggested as a way to generate $1 trillion in revenue, bringing down the national debt.
How Does the Gold Card Compare To The EB-5 Visa?
The EB-5 programme was designed to help boost the US economy by making investors create jobs in exchange for citizenship.
Trump’s gold card visa is based purely on a cash payment, so may be more appealing to those who don’t want to run businesses.
However, the gold card does come with a much higher price tag, making it largely unaffordable for a huge amount of investors. It will be interesting to see how popular it is and whether a smaller pool at a higher price has a better outcome for the country.
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How Does It Compare To Other Golden Visas?
Golden visas have long been a popular way for countries to boost their economies. However, almost all of them have lower financial thresholds than Trump’s. Some of these include:
Portugal: €500,000 in real estate or €250,000 in cultural projects.
Greece: €250,000 in property
Malta: €375,000 in real estate or a €60,000 contribution to the Maltese economy.
UAE: 10-year visa for a real estate investment of AED 2 million ($550,000).
This makes the gold card one of the more expensive options, potentially turning investors towards more affordable options.
The Benefits Of The Gold Card Visa
One of the biggest benefits of the gold card visa is that applicants don’t have to build businesses and create jobs to get it. For older high net worth individuals or those who simply want to move countries, it can be an appealing option.
Additionally, it could help the US offset their national debt. Currently, this is over $36.22 trillion according to the U.S treasury, making it a huge number to reduce.
The Cons Of The Gold Card Visa
Whilst the gold card certainly makes getting American citizenship easier, it also comes to with challenges.
For example, the high price tag might actually turn away more investors than the previous EB-5 visa, which was much more attainable. If the investment amount is too high, the US could end up losing out to countries like the UAE, Portugal or Greece.
Even more problematic is the fact that Trump doesn’t actually have the authority to create this new visa. Immigration law is controlled by Congress in the US, meaning without their approval this new visa might never be created.
It also raises questions about who the visa might let into the country. For example, the UK golden visa was stopped due to rising house prices and money laundering concerns. If the gold card doesn’t have strict vetting measures, it could let in more problems than it solves.
In order for it to work, it needs a mix of demand, congress buy in and strong vetting processes.
Will The Gold Card Visa Work?
The gold card visa is certainly an interesting idea, and it’s clear how it could appeal to high net worth individuals who don’t want to start businesses.
However, the high barrier to entry, alongside the legal challenges of bringing it into effect, could make it a difficult one to pass through.
In any case, it will be interesting to see how the final plan comes into play, and just how many people apply.
