Trump’s proposal to introduce a $5-million Gold Card visa in place of the EB-5 programme has sparked apprehension among those interested in the latter, and could potentially deter many Indian entrepreneurs and professionals from considering it.
Image: Kevin Lamarque/ Reuters
When he heard US President Donald Trump’s announcement about the Gold Card visa for permanent residency and citizenship replacing the EB-5 visa programme, an NRI based in the UAE looking to migrate through the EB-5 route became apprehensive. He immediately asked global migration platform Multipolitan to look for alternatives.
“The client initially expressed confusion following Trump’s announcement and started inquiring about alternative programmes such as the Canada startup visa and Portugal golden visa,” says Sandeep Jain, senior managing partner at Multipolitan. “However, after our attorney clarified the legal distinctions and explained that the Gold Card does not serve as an immediate replacement for the EB-5 programme, his interest in EB-5 was restored.”
Created by the US Congress in 1992, the EB-5 programme can grant green cards to immigrants who make a minimum investment of least $1,050,000, or $800,000 in economically distressed zones called Targeted Employment Areas (TEA), to create jobs for American workers, according to the United States Citizenship and Immigration Services website. The programme is popular among Indian investors since it offers a direct path to getting US green cards for themselves and their families. The EB visa allows the investor, their spouse and unmarried children under 21, to immigrate to the US, opening up educational as well as job opportunities.
Trump’s proposal to introduce a $5-million Gold Card visa in place of the EB-5 programme has sparked apprehension among those interested in the latter, and could potentially deter many Indian entrepreneurs and professionals from considering it. However, immigration experts point out that the current EB-5 programme is authorised until 2027 and remains a viable option.
“The proposed $5-million Gold Card visa has sparked significant discussion, but Indian investors should focus on what’s real today: The EB-5 Immigrant Investor Programme. EB-5, authorised through 2027 under the EB-5 Reform and Integrity Act, allows investors to obtain US permanent residency with an $800,000 investment into TEA-qualified projects. Investors who apply before September 30, 2026, are protected under current laws and will be processed based on current EB-5 regulations,” says Nicholas A Mastroianni III, president and CMO of US Immigration Fund (USIF), which specialises in EB-5 visas.
Also read: How the Trump administration stance on H1B will play out for India
By comparison, the Gold Card is a concept with no law, regulatory framework, or legislative timeline as yet. It would require Congressional approval and years of regulatory development before it could even be implemented, he adds.
If, and when, it does get implemented, the price point of the Gold Card visa as well as the fact that the amount is likely to be counted as a contribution (to the government treasury), may make it less attractive to investors unless there are other benefits. “The Gold Card replaces the EB-5 which brings up the investment amount from $800,000-$1.05 million to $5 million. In my mind, that’s a drastic unwarranted increase. In the EB-5, you could recover a lot of the money [through business earnings] but for the Gold Card, you lose it all,” says Deedy Das, a US- based venture capitalist who works at Menlo Ventures and writes on tech, immigration and investing.
Paul Williams, CEO of UK- based La Vida Golden Visas, which has a lot of clients from India for EB-5, concurs. Though the EB5 is bureaucratic and takes time, it works well as an entry to the US and as an option to get your funds returned, he says. “It also has far greater reach because of the lower price point. Although capital is at risk, there is a high likelihood of returns. In our experience Indian investors want something back. So, paying over $5 million as a contribution will need to come with some financial returns. Avoiding tax on overseas income is an obvious incentive, but we await clarification.”
The high price point has also raised concerns about pricing out potential investors globally. “Its proposed $5 million price point—more than six times the EB-5 minimum—makes it accessible only to a small fraction of global investors,” says Williams. “For such a programme, if we assume interest would come from those with a minimum net worth of $50 million there are an estimated 1,24,000 such families worldwide outside of the US who could be considered the total target market. Anyone with such wealth wanting to take this up is likely to be a small fraction of that.”
Trump has floated the idea of issuing 10 million Gold Card visas, which Das says is ambitious. According to him, 8,000 people applied for an EB-5 last year, and 100,000 people have applied since 2007. “There are approximately 2-3 million [people] with a $5 million-plus net worth, so the idea that 10 million people will apply for this card is preposterous. The number is likely to be much less than 8,000.”
Besides, there are several other attractive options in the market that cost less, including Portugal’s Golden Visa, which provides fast-track residency in exchange for a €500,000 investment in a venture capital fund with a minimal annual stay requirement, and Greece which offers a cost-effective entry into European residency with a €250,000 real estate investment. “Malta’s permanent residency programme, available for roughly €150,000, and Hungary’s new 10-year initiative starting at €250,000, also underscore Europe’s strong competitive edge in attracting investor capital,” adds Jain of Multipolitan. The UAE’s Golden Visa, with its 5 to 10-year residency permits and significant tax benefits is another option that has been drawing attention from investors.
