Trump's 'Golden Visa' Plan for Wealthy Foreigners Explained

Trump Proposes 'Golden Visa' Program for Wealthy Foreigners

U.S. President Donald Trump recently unveiled plans for a new “golden visa” program, which would cost $5 million and offer permanent residency along with a pathway to citizenship for wealthy foreign nationals.

“We expect this initiative to attract successful individuals who will contribute to the economy by investing large sums, paying substantial taxes, and creating jobs. We believe it will be a major success,” Trump stated from the Oval Office on Tuesday.

Howard Lutnick, U.S. Secretary of Commerce, explained that the “golden visa” would replace the current EB-5 investor visa program, which provides visas to foreign investors.

Trump described the golden visa as one targeting wealthy individuals. While the number of EB-5 visas has decreased, Trump suggested that the federal government could sell 10 million golden visas to help reduce the budget deficit.

When asked by reporters whether wealthy Russians could apply for the visa, Trump responded affirmatively, stating, "Yes, it's possible. I know wealthy Russians, and they are wonderful people." However, Lutnick clarified that all applicants would undergo extensive background checks to ensure they are "upstanding citizens of international caliber."

It remains unclear how long applicants for the golden visa would have to wait before obtaining citizenship. Green card holders – including those under the current EB-5 program – typically need to live as permanent legal residents in the U.S. for five years before qualifying for citizenship.

While Congress sets the criteria for U.S. citizenship, Trump stated that the golden visa would not require legislative approval. Further details of the new program are expected in the coming weeks.

Abolishing the EB-5 Program

Secretary of Commerce Howard Lutnick, in a statement, described the EB-5 program as "filled with nonsense and fraud." He added that it had become a lower-cost way for individuals to obtain a green card, which led the president to propose replacing it with the golden visa system.

The EB-5 program was introduced in 1990 to attract foreign investment. It allows individuals to invest approximately $1 million in a business that creates at least 10 jobs. Under this program, investors receive green cards, which can eventually lead to citizenship. Many applicants, however, face long waiting periods ranging from months to years before gaining permanent residency.

Each year, the EB-5 program offers 10,000 visas, with 3,000 of those set aside for investors in high-unemployment areas. The goal is to stimulate the U.S. economy through job creation and investment by foreign investors.

According to U.S. Department of Homeland Security data, around 8,000 individuals were granted investor visas between September 2021 and September 2022. However, in 2021, the Congressional Research Service revealed that EB-5 visas "pose a higher risk of fraud" compared to other immigration visas. The report attributed this risk to difficulties in verifying the legitimacy of the investor's funds.

Global Golden Visa Programs

Golden visa programs like this one are common around the world, offering wealthy foreigners the right to live and work in a country after making a significant investment. Additionally, some countries offer "golden passports" that provide full citizenship rights, including voting and working in the country.

Henley & Partners, a global advisory firm based in the UK, reports that over 100 countries offer golden visas, including the U.S., the UK, Spain, Greece, Malta, Australia, Canada, and Italy. However, such programs have faced increasing scrutiny and criticism.

“While they can stimulate economic growth through direct investment, they also attract criminals and corrupt individuals seeking to evade the law with illicit earnings reaching billions of dollars,” a report from the Organization for Economic Cooperation and Development (OECD) published in 2023 noted.

Transparency International, an organization that tracks corruption globally, has stated that such programs in the European Union are "not about investment or migration, but about corruption interests."

There has been significant criticism from European institutions. In 2022, the European Union’s Committee on Civil Liberties, Justice, and Home Affairs voted to ban golden passports.

This growing concern has led several European countries, including the UK, Spain, the Netherlands, and Greece, to scale back their golden visa programs in recent years. Spain, for example, has removed its “golden visa” program, which began in 2013 and granted visas to investors purchasing properties worth at least €500,000 ($525,000). The deadline for applications is set for April 3, 2025.

Spanish Prime Minister Pedro Sánchez stated last year that the government's aim was to end the program to "ensure that housing is a right, not just a business opportunity."

A study of golden visa programs in the European Union conducted by the London School of Economics and Political Science and Harvard University also questioned the economic rationale of such initiatives, concluding that they represented only a "small" portion of foreign investment and yielded "minimal" economic benefits.

In October 2023, an investigation by the International Consortium of Investigative Journalists revealed that a former Libyan official accused of war crimes and a convicted Turkish businessman were able to obtain Dominica passports through such programs.