U.S. President Donald Trump has unveiled a new immigration initiative designed to attract wealthy foreign investors. The proposed "Gold Card" visa would provide a pathway to U.S. citizenship for individuals willing to invest $5 million in American businesses. This program aims to replace the existing EB-5 immigrant investor visa, which has been in place since 1990.

Trump announced the plan on Tuesday, stating that it would offer green card privileges and eventually lead to U.S. citizenship. He emphasised that the program would attract affluent individuals who wish to invest in the United States. "We are introducing a Gold Card, which will replace the outdated EB-5 program. It will provide a direct route to American citizenship for those willing to invest significantly in the country," Trump said.

What is the EB-5 Visa Program?

The EB-5 immigrant investor visa was established to stimulate the U.S. economy by encouraging job creation through capital investment from foreign nationals. Under this program, individuals can obtain U.S. residency by investing a minimum of $1,050,000 in American businesses. The threshold is lowered to $800,000 for investments in targeted employment areas—economically distressed regions in need of development.

Despite its initial success, the EB-5 visa program has been criticised for alleged fraud and misuse. Reports indicate that the program has often been used to finance real estate projects, including those linked to Trump’s business associates. The Trump administration previously attempted to reform the program in 2019 by increasing the minimum investment requirement, but a federal judge overturned the change in 2021.

Wealth Advisers Express Skepticism

While Trump’s new Gold Card visa is intended to attract affluent global investors, many wealth and immigration advisers doubt its effectiveness. Some experts argue that the $5 million price tag and U.S. tax laws may deter potential applicants.

"Paying $5 million for a visa and then getting taxed on global income defeats the purpose for many wealthy investors," said Bassim Haidar, a multimillionaire and former UK non-domiciled resident.

John Hu, founder of Hong Kong-based John Hu Migration Consulting, also expressed concerns about the program’s appeal. "The EB-5 program has been widely used by Hong Kong and Chinese residents who invest in the U.S. or want their children to study there. Raising the investment requirement to $5 million will significantly reduce the number of applicants," Hu explained.

Impact on Global Investor Migration

Trump’s proposal comes amid increasing scrutiny of residency-by-investment programs worldwide. The European Union has pressured member states to tighten or eliminate such programs, citing concerns over tax evasion, money laundering, and inflated real estate prices. A 2021 study by the London School of Economics and Harvard University found that golden visa programs in the EU contributed only marginally to foreign investment and had negligible economic impact.

Singapore’s Global Investor Program and similar initiatives in Canada and Australia continue to attract high-net-worth individuals, but the U.S.’s global taxation policies may make it a less appealing destination. "The U.S. has always been the American Dream for many investors, especially from Asia, but taxation remains a key issue," said Grace Tang, CEO of Phillip Private Equity in Singapore.

Concerns Over Congressional Approval

Another major hurdle for the Gold Card visa is that it requires congressional approval. Kim Ji Sun, president of Dae Yang Immigration Law Group in Seoul, pointed out that Trump alone cannot abolish the EB-5 program without legislative support. "It’s likely a negotiation tactic to boost U.S.-bound investment, but I don’t see demand increasing significantly," she noted.

Additionally, Trump’s Commerce Secretary, Howard Lutnick, criticised the EB-5 program, calling it "nonsense" and "fraudulent." He defended the new Gold Card plan, arguing that it provides a more transparent and valuable route to U.S. citizenship.

Russian Oligarchs and Controversy

Trump’s comments on potential Russian applicants for the Gold Card visa have also sparked debate. When asked whether Russian oligarchs could qualify, Trump responded, "Yeah, possibly. Hey, I know some Russian oligarchs that are very nice people."

Given the geopolitical climate and ongoing scrutiny of Russian investments, this statement has drawn criticism. The U.S. has imposed several sanctions on Russian billionaires in response to global conflicts, raising questions about how the Gold Card program would handle such applicants.

The Future of the Gold Card Visa

The Biden administration previously renewed the EB-5 program in 2022, increasing investment thresholds and implementing stricter regulations. Trump's Gold Card proposal seeks to completely overhaul this system, but its success remains uncertain. The plan's effectiveness will depend on its final structure, investor interest, and whether it can pass through Congress.

For now, the U.S. remains a prime destination for global investors, but the high investment requirement and complex taxation laws may limit the program's appeal. More details on the Gold Card visa are expected to be released in the coming weeks.