A version of this article first appeared in the CNBC domestic wealth bulletin with Robert Frank, a weekly guide to the investor and the high value consumer. register To get future editions, directly in your box.
President Donald Trump proposed $ 5 million “Golden Card” for US residence would be the most expensive in the world, according to experts.
However, it also includes a tax emptiness that would give new cardholders a lucrative benefit that is not available to American citizens, experts say.
Trump this week announced the creation of a new investment visa that gives it a permanent abroad stay and a road to citizenship in exchange for $ 5 million. Lawyers who advise the rich on migration and investment visas say the demand is already strong.
“Presenting the Golden Card Visa Program presents a unique opportunity for high -value net -worth individuals who seek to secure American residence with a path to citizenship,” said Dominic Volek, head of private customers in Henley & Partners. “The US remains the undisputed leader in the creation and accumulation of private property.”
Volek and others who care about the global rich say they have already called by clients who want to buy a Trump gold card. Approximately 135,000 of millionaires around the world are projected to migrate to a new country in 2025, according to Henley. The United Arab Emirates and the US usually top the list of destinations.
“I think he will sell like crazy,” Trump said at his first press press conference Wednesday. “Is a bargain.”
As the details remain unclear, the proposal would radically change the path of American residence to the global wealth, who currently have to navigate some of the programs with close restrictions to stay in the country. It would also mark a major possible tax change for the rich global global in the US, engraving a new gap for gold card holders.
Currently, US citizens, permanent residents and green card holders are required to pay the income tax for their profits in the US, as well as any income they earn abroad, including in their country. The US tax for income around the world has traditionally made American residence or citizenship much less attractive to the global wealth, which have widespread businesses around the world and often housed in tax havens.
Trump said gold card holders would not undergo taxes on their income overseas. The provision means that gold card residents will be able to buy a non -available tax benefit for US citizens. Councilors say they are waiting in clearer directives, as the program can create double classes of taxpayers among the rich American.
However, the carving of international income makes it much more attractive to the ultralities of the world.
“It would be a big departure” in tax treatment, said Laura Foot Reiff, a lawyer at Greenberg Traurig who specializes in business immigration. “There are many wealthy individuals who have been invested in US companies or have families here who do not become permanent residents because they do not want tax consequences.”
Tax skill is one reason the government can charge a premium for the golden card. With $ 5 million, the program would be one of the most expensive in the world. Volek said the global program of Singapore investors requires a $ 10 million SG investment, or about $ 7.5 million. New Zealand’s most expensive program requires an investment of up to $ 10 million NZ or about $ 5.7 million.
Most investment visa programs around the world cost less than $ 1 million, lawyers say.
About 100 countries offer a type of investment visa program, with about 60 jurisdictions that actively promote their programs, according to Henley. Approximately 30 programs dominate the investment migration business $ 20 billion a year with Malta, the United Arab Emirates, Portugal, Italy and some Caribbean jurisdictions being the most popular.
At Wednesday’s press conference, Trump Secretary and Trade Howard Lutnick said the US Golden Card would replace the current investment visa program, called EB-5, which offers green card to those who invest at least $ 900,000 or $ 1.8 million, depending on the area and project. The EB-5 program is ruined by delays and a story of fraud and abuse. The program was renewed by Congress in 2022 with major changes that demanded that investments be channeled in more rural, poor and infrastructure projects.
When it comes to applicants, China has been far and away from the largest source of those looking for EB-5 visas, with Taiwan, Vietnam and India also ranking up. SH.BA issued just over 12,000 EB-5 visas last year, with two-thirds going to Chinese nationals, according to the State Department.
Wealthy Chinese are also dominant users of worldwide investment programs, including in Europe, Australia and New Zealand.
While Trump said the US could sell a million gold cards, lawyers say the potential demand is part of the total – maybe thousands but not hundreds of thousands. There are about $ 424,000 in the world worth $ 30 million or more, with 148,000 of them in the US, leaving about 277,000 abroad wealthy, who could reasonably handle the program.
However, only a handful of them are likely to apply to live in the US, say immigration lawyers. Last year, the US had a net entry of about 3,800 millionaires according to Henley.
“Hundreds of thousands sound up,” said Foot Reiff. “There may be businesses that would pay to bring high talent, like research scientists they want to bring here and not to be subjected to quotas.”
A big draw of the new program is the tax benefits. Historically, permanent residents at the US have to pay the income tax on their profits in the US, as well as any income they earn abroad, including in their country. The US tax on income all over the world makes it much less attractive to the global wealth that have widespread businesses worldwide and often housed in tax paradise.
Trump said he expects the biggest demand from the company (especially in technology, such as Apple) seeking to hire senior college graduates in the US coming from India, China or other countries, but cannot get the right visas.