US President Donald Trump has announced plans to sell $5 million “Gold Card” resident permits to foreigners.
The high-paying visa replaces the current “EB-5” immigrant investor visa in the United States for foreign employers accusing Trump's Secretary of Commerce of being full of “nonsense” and “fraud.”
“You have a green card, this is a gold card,” Trump told reporters in the Oval Office on Tuesday. Permanent residents who are not citizens of the United States are known as “green card” owners.
“In addition to the privileges of green cards, it will be a route to (US) citizenship,” the president added.
What is the EB-5 visa program and why is Trump quitting it?
The EB-5 visa, launched in 1990, is open to foreigners who invest around $1 million in companies employing at least 10 people. They get an immediate green card (the path to ultimate citizenship) in exchange. Otherwise, green card applicants will usually have to wait several months, and often years to obtain permanent residency.
According to the US State Department, the EB-5 program concludes with 10,000 visas per year, with 10,000 visas per year, set aside for those investing in 3,000 employment areas.
The purpose of the EB-5 visa is to “stimulate the US economy through job creation and capital investment by foreign investors,” says U.S. Citizenship and Immigration Services.
But Trump's Secretary of Commerce Howard Lutnick said the program was being misused and the prices were too low.
“EB-5 program…it was a way to get low-cost green cards, full of nonsense, make-up and fraud. So the president said he was going to end the EB-5 program rather than having this kind of ridiculous EB-5 program,” Lutnick said.
In 2021, the US Government's Office of Accountability discovered that EB-5 visas pose a serious risk of fraud, particularly due to challenges in tracking applicants' funding origins and potential perceptions of favors.
Who can qualify for a “Gold Visa”?
“It's going to be someone who has the money,” Trump said, but without paying attention to job creation requirements.
However, all applicants undergo a thorough review to confirm that they are “great, world-class, global citizens.”
When asked if wealthy Russians could qualify, Trump replied. I know a Russian oligarch who is a very nice person. ”
There appears to be no clear caps on the program, and Trump suggests that the government can sell 10 million visas to reduce the national deficit.
The program has pledged Trump to expel him on a massive scale as the Trump administration continues to crack down on undocumented immigrants.
How much does it cost? And what are the advantages?
Approximately $5 million per application.
This makes it “the most expensive golden visa option in the world,” according to Christine Slack, an associate professor of political sociology at the London School of Economics.
“But there's still demand for this if the path is fast and smooth,” Slack told Al Jazeera. “Oddly, Trump is putting a lot down on what the US has to offer.”
Current green cardholders, including those who are beneficiaries of the EB-5 initiative, usually must live as legal permanent residents of the United States for five years before qualifying for citizenship.
It is unclear whether Gold Card Visa holders will have to wait less for citizenship.
Trump said his administration will provide more details in the two weeks when visas begin to be sold.
Are there similar initiatives in other countries?
Yes, so-called “golden visas” are common all over the world, including European Union states such as Spain and Greece. In some countries, such as Malta, Egypt and Jordan, foreign applicants can even acquire direct citizenship through investment. These “golden passport” programs are the most competitive in the Caribbean, with countries like Dominica, Granada, St. Kitts and Nevis offering low rates of between $200,000 and $300,000.
While US gold cards may be in high demand, “they may have their own unique drawback of exposing holders to US taxes.
“But most very wealthy people will build their wealth so that they don't get attacked by them,” she added.
Why is Golden Visa controversial?
Generally, Golden Visa programs are controversial as they can attract individuals who are trying to use them for money laundering or fraud, and can increase housing costs in major cities.
These concerns have led several European countries, including the UK, the Netherlands and Greece, to roll back Golden Visa Programs in recent years, according to Bloomberg.
Trump's Golden Visa plan could face more controversy if he attempts to push it forward without Congressional approval.
Congress is responsible for determining citizenship eligibility and has previously approved the EB-5 program that Trump said he intends to end.
