The US has long been a destination for global investors seeking economic opportunities and residency. The EB-5 Visa allowed foreign investors to secure US residency by investing in American businesses. However, the newly proposed ‘Gold Card’ program proposes granting residency for a one-time $5 million payment.
Tax experts and international investors are watching closely to see how it unfolds, particularly as the US government considers it a potential revenue source. Our CEO at Fusion CPA, Trevor McCandless, and international tax expert Charles Christensen explore its possible impact on global investors and the US economy.
Understanding the Basics of the US Gold Card Program
While details are still emerging, the Gold Card program is part of broader efforts to reduce the national deficit and attract high-net-worth individuals. Unlike the EB-5 Visa, which required an equity investment in a US business and job creation, this new program appears to be a straightforward residency purchase – without direct business investment requirements.
Given the EB-5 Visa’s role in job creation, Charles suggests it’s unlikely to be entirely phased out. Instead the question should be around whether the Gold Card will coexist with EB-5?
Key differences between the two programs include:
| Gold Card Program | EB-5 Visa Program | |
| Investment Requirement | $5 million fee | $1 million minimum (or $800K in certain areas) |
| Job Creation | Not required | Must create at least 10 jobs |
| Residency Path | Immediate access (details unclear) | Conditional residency leading to a green card |
| Type of Investment | Flat fee (no equity stake) | Investment in a business or real estate |
How the Gold Card Fits Into Global Tax Strategies
The Gold Card program is launching alongside other major tax proposals, including a global residency tax shift that could change how US citizens abroad are taxed. Proposing that they are taxed primarily on US-earned income, rather than worldwide income.
For investors from high-tax countries like France, Germany, or Sweden, this change could make US residency more appealing. However, Charles points out a major hurdle: exit taxes.
This means that “if you leave a country with an exit tax, you’re paying an upfront cost to that country before even getting to the $5 million for US residency,” he says.
This creates a double financial burden, which may make the Gold Card option less attractive.
How Does the Gold Card Compare to Other Countries’ Golden Visas?
While the program emerged quickly, the US is not the first country to offer paid residency to investors. Many countries have launched similar “Golden Visa” programs, though at significantly lower price points:
| Country | Investment Requirement |
| Portugal | €500,000 ($550,000) |
| Spain | €500,000 ($550,000) |
| Greece | €250,000 ($275,000) |
| US (Gold Card) | $5 million |
Most of these programs have investment-based components, such as real estate purchases or business investments. The US Gold Card, by contrast, appears to be a flat fee without an investment requirement – which could either be an advantage (no business risk) or a disadvantage (no return on investment).
Will the Gold Card Program Pass?
As with any major policy shift, the Gold Card program will face scrutiny before becoming law. Some key concerns include:
- Legislative Approval: Can the program be implemented without Congress, or will it face resistance?
- Market Demand: Is there a significant number of investors willing to pay $5 million upfront?
- Impact on EB-5: Will the EB-5 Visa be phased out or remain an alternative pathway?
While the US Gold Card program is still under review, if you’re looking ahead to consider what the move would mean for you, you should think of the following:
- It’s not an equity investment. Unlike the EB-5 Visa, there’s no return on the $5 million.
- Tax planning is crucial, particularly in navigating exit taxes.
- Comparisons with other programs matter. Many nations offer residency at a fraction of the cost.
Have questions? Fusion CPA closely monitors tax law changes and global residency trends. We can help you assess tax implications, structure your financial strategy, and ensure long-term financial security. Stay informed – let’s discuss how this may affect your plans.
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