How Trump’s ‘Gold Card' visa differs from EB-5 investment-linked programme

Can the proposed US Gold Card trump EB-5 investment visa?

The United States of America is set to roll out a new pathway to citizenship.

US President Donald Trump on February 26 announced plans to introduce ‘Gold Card’ visa to attract wealthy foreigners to the country. “...we have to be able to get people in the country, and we want people that are productive people...the people that can pay $5 million (approximately Rs 44 crore), they’re going to create jobs.  They’re going to spend a lot of money on jobs.  They’re going to have to pay taxes on that too.  So, they’re going to be hiring people, they’re going to be bringing people in and companies in,” he said on February 26.

Here’s a look at the details around the proposed Gold Card that have emerged so far and how it could stack up against the existing EB-5 framework:

How does the EB-5 visa work?

Among the clearest routes to US permanent residency, EB-5 enables a non-US person to secure a Green Card through investment. The EB-5 Immigrant Investor Program, in place since 1990, allows a non-US investor applicant and their immediate family members to gain US permanent residency status and receive a Green Card. Through this programme, the qualified applicant invests between $800,000 and $1.05 million into projects, via regional centres within the US, and the investment must lead to the creation of more than 10 American jobs.

How will the Gold Card differ from EB-5?

Going by the Trump administration's statements so far, the major difference will be in terms of the monetary commitment that the applicants need to fulfil. In the case of EB-5, visa-seekers need to pump in at least $8,00,000 (close to Rs 7 crore), as mentioned earlier, while a Gold Card will necessitate a much higher minimum commitment of $5 million (around Rs 44 crore).

Details are yet to emerge on whether this will be in the form of fees paid to the US government or investment into specified projects. “Only a formal policy will offer clarity on whether this will be in the nature of fees or investment. However, at the moment, I would think applicants will have to make investments – could be in the capital markets, US government securities or government projects. We will only know for sure in the coming weeks or months,” said an immigration expert who did not wish to be named.

Also read: How does Donald Trump's 'gold card' plan stack up against other 'golden visas'?

Will Gold Card be more effective compared to EB-5?

Donald Trump is expecting at least one million millionaires or billionaires for the ‘Gold Card’ visa program, but experts are not convinced. The idea that a million people will jump in may be optimistic, they say.

“This seems tough because even the EB-5 visa, which starts at $800,000, has seen much lower demand (than Trump’s estimate for the ‘Gold Card’ visa) from niche clients around the world. It has drawn around 70,000 applicants over 30 years. The exact shape of the new Gold Card is still not known. We still need to see how the new visa programme will be more beneficial compared to the EB-5 visa,” said Binu Varghese Regional Director – India – RIF Trust.

However, experts say a meticulous assessment of the demand for Gold Card can be made only after a formal policy is out in the public domain.

Can Indians working in US companies acquire this visa through their employers?

While the nitty-gritty will be clear only after a formal policy is announced, Trump’s initial comments suggest that employees of US corporates could get a shot at residency through their employers. “A person comes from India, China, Japan, lots of different places, and they go to Harvard, the Wharton School of Finance… And they graduate number one in their class, and they are made job offers, but the offer is immediately rescinded because you have no idea whether or not that person can stay in the country. I want to be able to have that person stay in the country. These companies can go and buy a Gold Card, and they can use it as a matter of recruitment,” the US president said.

Will the Trump administration phase out the EB-5 investor program?

Trump officials’ remarks on the existing EB-5 Visa, which allows a non-US investor applicant and their immediate family members to gain US permanent residency status and receive a Green Card, have also fuelled speculations on its future.

“So, the EB-5 program, which has been around for many years, had an investment of a million dollars into projects in America.  And those projects were often suspect, they didn’t really work out, there wasn’t any oversight of it.  So, it was poorly overseen, poorly executed.  Then you had our border open, where millions of people came through. So, the idea is we will have a proper business.  We will modify the EB-5 agreement,” US Secretary of Commerce Howard Lutnick said.

To be sure, those Indians looking at EB-5 visas will have time till 2026 to apply for the existing residency by investment visa. Even the earlier filed applications will remain unaffected due to the introduction of the new ‘Gold Card’ visa program. Under the 2022 EB-5 Reform and Integrity Act (RIA), applicants filing before September 30, 2026, can enjoy protection under the current rules, safeguarding them against sudden shifts in policy.

Will demand for EB-5 visas go up in the near term?

Varghese sees higher demand for the EB-5 visa over the next year, as evident in higher applications for the Spain golden visa, which is scheduled to be stopped on April 3, 2025.

“Further, we feel that the EB-5 visa will continue simultaneously with some changes as this is bringing in a lot of revenue into the US. Both the visa programmes will have different investor demographics,” Varghese said.

Since the monetary commitment threshold under the Gold Card is nearly five times higher, resident Indian high networth families who wish to start planning now will have to deal with RBI’s Liberalised Remittance Scheme (LRS) challenges. For domiciled Indians, the LRS ceiling of $2,50,000 per financial year could be a hurdle when it comes to meeting the minimum investment requirements. However, global Indians with investments across the world may not find it challenging to meet the requirements, feel immigration consultants.

Likewise, Indians who have planned their immigration over the years and have been creating assets accordingly – particularly parents whose children study abroad and wish to settle in destination countries – could find this feasible.