US Golden Visa Faces Legal Challenge

President Donald Trump’s $5 million Trump Card has garnered significant interest from wealthy individuals abroad, though it is encountering legal challenges and uncertainties about its potential market size, as noted by immigration attorneys.

Trump introduced the website in June for his new immigration initiative, initially named “the Gold Card” and later renamed “the Trump Card.” A brief questionnaire requested interested parties to provide their name, email, region, and indicate whether the Trump Card would be for “self,” “family,” “spouse,” or “other,” as well as whether the application was from a business or individual.

Commerce Secretary Howard Lutnick informed the Financial Times that 70,000 people had already signed up and that the card would be crafted from real gold. In March, he mentioned the potential market for the cards was 37 million. He stated that selling 200,000 cards would generate $1 trillion for the Treasury, aiding in reducing the federal debt.

The Trump Card has invigorated the growing market for investment or “golden” visas, which allow affluent individuals to purchase residency or citizenship in another country in return for a six-figure or seven-figure investment. According to Henley & Partners, a record 142,000 millionaires will relocate to another country this year, driven by increasing political turmoil and unrest. The U.K. is anticipated to lose a net 16,500 millionaires due to changes in its tax program, while the UAE, the largest gainer, is expected to gain a net 9,800 millionaires, and the U.S. is projected to gain a net 7,500. 

The Trump Card would also emerge as many countries previously favored by the wealthy — including Spain, Portugal, and Italy — are tightening their investment-visa programs amid populist opposition and political backlash.  

However, interviews with immigration attorneys, advisors to the wealthy, and political staffers involved in the program reveal that the Trump Card faces fundamental legal and tax hurdles. Moreover, even if it is approved and eventually offered, the number of buyers is likely to be far less than what the White House has projected and could diminish after an initial surge of buyers.p’s $5 million gold card tax loophole: Here’s what to know

“Each week there is something else announced that’s putting the steps in place to eventually get there,” said Dominic Volek, group head of private clients at Henley & Partners, which advises the wealthy on visas and passports. “But there are still a lot of question marks in terms of how successful it will be at the end of the day.”

The latest question revolves around demand. While Lutnick highlighted the 70,000 sign-ups as evidence of potential sales, anyone can sign up on the website requesting more information, regardless of their net worth. Immigration attorneys, family offices, bankers, wealth managers, and various advisors to the global wealthy said they signed up to stay informed on the Trump Card for their potential clients.

“I submitted two registrations so I can have access to more details when it becomes available,” said Theda Fisher, partner at Withers Bergman LLP, who advises wealthy clients.

The population of individuals outside the U.S. worth $30 million or more – a reasonable benchmark for those willing to spend $5 million on a visa — is approximately 276,000, according to the latest figures from data firm Altrata.

Immigration attorneys anticipate the largest demand to come from China and the Middle East. Altrata reports that China has around 46,000 ultra-high-net-worth individuals (those worth $30 million or more), while the Middle East has around 19,000. U.S. trade tensions with China and restrictions by the Chinese government on capital flight could limit the number of wealthy Chinese purchasing a Trump Card, attorneys said.

Volek, who praised the program in concept, estimated that the demand for the Trump Card will be around 2,000 annually.

“I think a couple thousand a year is achievable,” he said.

By country, he said demand will likely resemble that of the current EB-5 program, the longstanding U.S. visa regime that grants applicants residency and a pathway to citizenship for about $1 million. China dominates the EB-5 program, with mainland Chinese investors accounting for up to two-thirds of the 8,354 EB-5 visas issued in 2023, according to State Department data. Other countries in the common EB-5 applicant pool include Vietnam, India, Taiwan, and South Africa.

Other golden-visa advisors report seeing interest mainly from Mexico, the U.K., Russia, and Brazil. The White House has not clarified whether the $5 million card covers a family or just an individual, which could also affect demand.

Companies might become major buyers of the Trump Card as they search for tech talent globally. Trump said that Apple, for instance, would purchase “a lot” of Trump Cards, according to reports. (Apple declined to comment).

Ultimately, demand will depend on the specific terms of the Trump Card, which are already sparking controversy. Trump and Lutnick have stated that the Trump Card would replace the EB-5, which is backed by significant lobbying and bipartisan support in Congress. The EB-5 program, which ties investments to job creation in underemployment areas, was reauthorized until 2027, so any changes or termination would require congressional approval.

“The EB-5 program was created by Congress, and only Congress may abolish it,” said the American Immigrant Investor Alliance, which aims to increase the number of available EB-5 visas.

Screening and vetting remain another unresolved issue. After the U.S. discovered that Russians sanctioned after the Ukraine invasion had used its popular non-domicile program (similar to the Trump Card), it significantly scaled back the program. It’s unclear whether the Trump administration, which has been in a trade dispute with China, would allow unrestricted access to Chinese nationals who apply. The administration also hasn’t commented on how it plans to screen for ties to terrorism, organized crime, money laundering, or foreign intelligence agencies.

The biggest challenge for the Trump Card, however, involves taxes. The U.S. is one of the few countries that taxes worldwide income, meaning American citizens and permanent residents must pay federal income taxes on income earned outside the U.S. The only way wealthy foreigners would purchase a Trump Card is if they’re exempted from worldwide income taxes – providing Trump Card holders with a significant tax advantage not available to U.S. citizens.

While Trump confirmed that Trump Card holders would be exempt from overseas income, he stated in a Truth Social post that “wealthy people will be coming into our country by buying this card” and will be “paying a lot of taxes,” as they would still pay state and federal taxes on U.S.-sourced income.

Changing the tax code for Trump Card holders will require congressional approval as well as approval from the IRS, according to tax experts. So far, there is no legislation in the Big Beautiful Bill or other bills addressing the change.

The unprecedented tax exemption could also create loopholes. Wealthy Americans, for example, who have dual citizenship in another country could renounce their U.S. citizenship, purchase a Trump Card, and regain access to the U.S. free of global-income taxes.

The administration has also yet to provide information on whether Trump Card holders would be exempt from estate and gift taxes — which are typically more significant and more costly than income taxes for the ultra-wealthy.

“There are many questions we have, including how various tax positions will be treated, the duration of the ability to exempt taxation of global income, estate tax implications, and who will be included in one donation,” Fisher said. “For this reason, we have advised most of our clients not to register and take a wait-and-see approach. Unless this program really makes sense from a long-term tax and estate perspective, many high-net-worth individuals will not apply.”