President Donald Trump surprised advocates and policy makers alike today with a major policy announcement. He introduced the Gold Card, a new $1 million residency program to attract rich people to the United States. This announcement was made via an executive order. It represented a nearly 90 percent reduction of the original asking price of $5 million, first disclosed in February. This new initiative provides for much more expedited consideration of residency for applicants. Supporters expect a rush of interest from wealthy individuals around the globe.
The program provides Gold Card holders with expedited access to critical U.S. services. This covers everything from education to healthcare, banking to financial markets. This holistic offering is aimed at high-net-worth individuals. It doesn’t just deliver on the promise of residency, but on countless possibilities all over the U.S.
Dominic Volek, the group head of private clients at Henley & Partners, was understandably buoyant. He imagines that once the Gold Card is up and running, his company will process “hundreds” of applications. Overall, he’s hoping the new program will receive 5,000 – 10,000 applications a year.
Volek noted that the program is already positioned to draw huge interest. In practice, most would-be applicants are deciding to wait a few months to see how it works out before they make the leap.
“People don’t want to be the first one to try it. The majority of our clients like to see the program up and running for three to six months and see the outcomes before they commit.” – Dominic Volek
Even though it seems like a home run, some immigration counsel are worried about the consequences of this new fee schedule. Reaz Jafri of Withers remarked that the $1 million fee is “almost too cheap” compared to similar programs in other countries. He argued that there are benefits to charging a higher fee.
“They could charge $20 million or $25 million and exempt the buyers from the estate tax,” – Reaz Jafri
“You get access to the U.S. education system, health care system, banking system and financial markets, all for $1 million. It’s a pittance for many of these families. I think they should have kept it at $5 million to make it special.” – Reaz Jafri
Originally, the Gold Card’s pricing strategy has created confusion and an outcry from many residents who would potentially apply. The lower cost will encourage more rich kids to apply. It does beg the question of how exclusive those residency programs really are. Many applicants may view the initial $5 million price tag as a means of ensuring that only the most serious candidates would seek residency.
Despite these positives, the Gold Card does have some serious disadvantages compared to other golden visa programs around the world. The U.S. government received one historic $1 million donation, and it’s non-refundable. This requirement could dissuade a number of prospective applicants who are unwilling to put up millions of dollars without any assured recoup.
Specifically, interest in the Gold Card will come largely from Asian nations such as China and India. Most people on the ground in Myanmar are desperate to look for greener pastures outside the country. Jafri revealed that he’s already fielded interest from four Brazilian family offices. He further reported that three Chinese and Indian families have expressed interest in the Gold Card.
The U.S. has historically been the most popular destination for such billionaire migrants. According to the Census Bureau’s projections, nearly 7,500 of these millionaires will be on their way to the U.S. just this year. Yet a recent forecast from New World Wealth and Henley & Partners has some fascinating news. For example, they project that some 142,000 millionaires will relocate to other countries by 2025.
Today’s global wealth migration is highly volatile and complex. The creation of the Gold Card would certainly increase the competition to woo high-net-worth individuals between countries to a fever pitch.