End of EB-5 Visa: How the $5 Million US "Gold Card" Impacts Wealthy Indian Investors
By Hans News Service | 26 Feb 2025 | 8:11 PM IST
HIGHLIGHTS:
The end of the EB-5 visa program and introduction of the $5 million US Golden Visa impacts wealthy Indian investors. Learn about alternatives and changes ahead.
In a surprising move, US President Donald Trump announced the termination of the EB-5 visa program, which will be replaced by a new immigration initiative, the "Gold Card." This new program offers a direct path to US citizenship for foreign investors willing to pay $5 million (approximately Rs 43.7 crore). This change is particularly significant for wealthy Indian investors who had begun to view the EB-5 visa as a viable alternative to the long wait for H-1B visas.
Gold Card to Replace EB-5 Visa
In a statement from the Oval Office, President Trump outlined the new scheme, which allows investors to secure permanent US residency through a $5 million investment. “We’re going to be selling a Gold Card,” Trump said, adding that the financial contribution would grant individuals "green card privileges."
Commerce Secretary Howard Lutnick, who was present alongside Trump, emphasized that applicants could directly pay the sum to the US government. He further criticized the EB-5 program, calling it a "ridiculous" system, and promised that the new "Gold Card" would offer a more effective alternative for global investors.
Why the Gold Card is a Blow to Indian Investors
The jump from a $1 million to a $5 million minimum investment is a significant difference, but it's not the only impact of this shift. Russell A Stamets, a partner at Circle of Counsels, explained that the Gold Card may appeal to the ultra-wealthy, especially if it comes with exemptions on global income taxation.
“For the global wealthy, the price tag of $5 million could be seen as insignificant, especially if tax breaks are included,” he said.
Varun Singh, managing director at XIPHIAS Immigration, warned that the removal of the EB-5 visa would severely affect Indian investors who have made substantial contributions to US sectors like real estate, infrastructure, and technology.
“Indian investors have invested billions of dollars in the US economy, and this shift could push them toward alternative global residency options,” Singh explained.
Impact on Indian Investors and Alternative Programs
The EB-5 visa has provided Indian families with a direct pathway to US residency, bypassing long waits for H-1B or EB-2/EB-3 green cards. For many Indian nationals, the elimination of this route leaves them in a difficult position.
"Without the EB-5, thousands of families could remain in limbo, waiting for other avenues of immigration," Singh added.
As a result, Indian investors may increasingly look to other countries offering residency through investment programs, such as Greece’s Golden Visa, Portugal’s Golden Visa, or schemes in the UAE and Canada. These alternatives typically have lower investment requirements and faster processing times, making them attractive for high-net-worth individuals from India.
Trump’s Stance on EB-5
The EB-5 program, introduced in 1990, was designed to stimulate the US economy by attracting foreign investment to create jobs. Under the EB-5 visa, foreign nationals could secure green cards by investing a minimum of $1 million, or $800,000 in designated economically distressed areas.
However, Trump’s administration has long criticized the program, calling it a vehicle for fraud and abuse. Lutnick further criticized the EB-5, stating,
“It was a way to get a green card that was priced too low.”
The program had previously been associated with high-profile real estate projects, including some involving the Trump family. While Trump has pitched the Gold Card as an improvement, critics argue that the new program primarily benefits the ultra-wealthy while effectively closing the door for those who had invested through EB-5.
The Future of the EB-5 Program and the Gold Card
While the EB-5 program was renewed by the Biden administration in 2022 with higher investment requirements, the Gold Card’s introduction signals a major shift in US immigration policy. Critics suggest that the new system could exacerbate inequalities, benefiting the wealthiest investors while sidelining those who were hoping to build businesses and lives in the US through the EB-5 visa.
“The Gold Card seems more like a concierge service for the wealthy rather than a program designed to create meaningful contributions to the US economy,” Stamets concluded.
As the Gold Card replaces the EB-5 visa, Indian investors will have to navigate this changing landscape and explore alternative residency programs worldwide.
