The US government will sell ‘Gold Cards’ to wealthy individuals for $5 million promising permanent residency and a chance of citizenship. While the scheme could be a faster route to permanent residency, it may not be as attractive to Indians compared to the soon-to-be phased out EB-5 visa programme because of high cost, said immigrant experts and lawyers.
On Tuesday, US President Donald Trump announced that Gold Card scheme will be rolled out in the next two weeks, replacing the EB-5 visa programme.
Under the EB-5 scheme, which has been in place since 1990, investors can apply for a permanent residency (Green card) by making an investment of $800,000 to $1.05 million in a commercial enterprise. Spouses and unmarried children below 21 year are also eligible for a green card under the scheme.
As per existing norms, the US government can issue only 10,000 EB-5 visas a year. Further, there is a country cap of 7 per cent which means only around 700 EB-5 visas are available each year to investors born in India. While there is a 2-5 year backlog for EB-5 visa holders to get the Green card, wait time is still shorter compared to other categories.
“Since (Trump’s) announcement included the word “sold” we don’t know whether this will be an investment with a potential return of capital and potential to earn a profit or whether this is a one-time fee to the US. The fact that it is an enhanced amount, and if it is a non-returnable “investment” the Gold Card may not be as attractive to the large numbers that are attracted by the EB-5 green card option,” said Poorvi Chothani, Managing Partner of LawQuest, an immigration law firm with offices in India and the US.
“Indians may find the new Gold Card visa unattractive because it significantly raises the financial barrier to US residency, making it accessible only to ultra-high-net-worth individuals. The EB-5 program, despite its delays, was a structured investment route that allowed Indian entrepreneurs and professionals to invest lesser amounts, create jobs and gain a green card through economic contribution,” said Sonam Chandwani, Managing Partner, KS Legal & Associates. “Also if the EB-5 programme is scrapped abruptly hundreds of investors may be left in a limbo,” she added.
Will attract big taxpayers
Trump said the ‘Gold Card’ scheme would attract big tax payers and job producers. “I think we will be able to sell a million cards, may be more. A million cards will be worth $5 trillion,” Trump said. Companies will also use this scheme to buy the card for their top executives, he said.
While calling the EB-5 scheme full of nonsense and fraud, commerce secretary Howard Lutnick said the Gold Card scheme would help the government eliminate the budget deficit.