Trump's "Gold Card" - A new path for investors?

The Gold Card or Trump Card presented by US President Trump on February 25, 2025 is intended to provide foreign applicants with a direct route to a permanent residence permit (Green Card) – without the previous requirements for capital investment in US companies or job creation.

The program aims to replace the existing EB-5 visa, which has often been criticized for being susceptible to fraud. Instead, the flat fee of 5 million US dollars is to flow directly into the national budget, accompanied by a simplified application process. The Gold Card is intended to attract investment and reduce the US budget deficit at the same time.

According to US Secretary of Commerce Howard Lutnick, this is a "premium version of the green card" that is designed to attract "world-class talent and entrepreneurs". In contrast to the EB-5 visa, there is no obligation to create jobs or invest in certain economic sectors. Instead, the government emphasizes the expected macroeconomic effects of tax revenue and consumer spending by the new arrivals.

The EB-5 visa was introduced in 1990 to stimulate the US economy through capital investment by foreign investors and to create jobs. Under the following conditions, investors (as well as their spouses and unmarried children under the age of 21) are entitled to apply for permanent residence (Green Card) to apply:

• Investment of approx. 1 million US dollars in a commercial company in the USA or in so-called "regional centers"
  
  and
  
  
• Creation or retention of 10 permanent full-time jobs for qualified US personnel

The EB-5 visa was last reformed in 2022, with stricter review mechanisms designed to prevent fraud, maximize economic impact and shorten processing times. Since then, the minimum investment has been 1,050,000 US dollars, but can be reduced to 800,000 US dollars if the investment is made in a target employment area, such as rural areas or regions with high unemployment (Targeted Employment Areas).

In comparison to the Gold Card or Trump Card, the EB-5 visa is linked to genuine economic participation, while Trump's proposal only provides for a one-off payment to the state.

While the EB-5 visa has been channeling foreign investment into structurally weak regions since 1990, the Trump Card or Gold Card is based on radical simplification. Trump argues that the new programme will eliminate the "fraud and nonsense" of the EB-5 system, which has been criticized in the past for slow processing times and cases of abuse.

The key question for investors at the moment is whether the announcement of the "Gold Card" is a realistic immigration route. Despite the promotion and official waiting list, there are considerable doubts about the practical feasibility of the program.

Several factors speak for high legal and political hurdles:

• Legislative powers: The EB-5 program was initiated by Congress. A fundamental reform or abolition is therefore likely to require new legislation. Trump's claim that he can introduce the Trump Card by decree is currently being strongly questioned by constitutional experts
• Precedents and legal risks: The Trump administration already failed in 2019 with its attempt to raise the EB-5 minimum investment to 1.8 million US dollars. A federal court overturned this reform due to formal deficiencies. Similar legal challenges could slow down the Gold Card or prevent it altogether.
• Political resistance: Democratic MPs criticize the Gold Card as a sell-out of the American Dream to the super-rich, while conservative circles express concerns about a possible wave of immigration from certain countries.

Although US Secretary of Commerce Howard Lutnick announced a quick launch within a few weeks, there is still a lack of concrete legal foundations. Without clear rules on the review of applications, the maximum number of participants or the exact use of the funds collected, the program could end in a wave of lawsuits. Trump spoke of up to 10 million cards being issued, which has met with skepticism in both US politics and among the public.