The Trump Card, a new investment visa promoted by President Donald Trump that offers permanent residency in the United States in exchange for five million dollars, has generated significant international interest, with over 70,000 people registered on its website.
However, it faces legal, tax, and political obstacles that threaten its viability, according to immigration lawyers and tax experts cited by Telemundo.
Officially renamed the "Trump Gold Card," the proposal is part of Trump's ambitious plan to revitalize the investment visa market and raise up to one trillion dollars for the U.S. Treasury.
The Secretary of Commerce, Howard Lutnick, stated that the potential market is up to 37 million people and that companies like Apple would be interested in acquiring cards to attract international talent, although the company refused to comment on the matter.
A limited market and many uncertainties
Although the figure of 70,000 interested parties seems promising, anyone can register on the website, regardless of their income level.
Analystspoint out that the true market is limited to about 276,000 people worldwide with a net worth of at least 30 million dollars, the segment of ultra-wealthy individuals who might consider paying five million for a visa.
According to Henley & Partners, a British consulting firm specializing in investment migration, the actual demand would be around 2,000 applications per year, far from the official projections.
Moreover, there are still questions about the scope of the card: it is not yet clear whether it covers an entire family or just an individual, which could limit interest.
For now, high-level lawyers and financial advisors have mainly registered to gather information, not to apply immediately.
Fiscal risks and the need for legislative approval
One of the biggest obstacles to the program's success is the U.S. tax system.
Unlike other countries, the United States taxes the worldwide income of its citizens and permanent residents. This means they are required to pay federal income taxes on income earned in another country.
Although Trump promised exemptions for foreign income for cardholders, this would require significant modifications to the tax code, which can only be done by Congress with the approval of the Internal Revenue Service (IRS).
Such tax exemptions could also create a legal loophole: wealthy Americans might renounce their citizenship, purchase the Trump Card, and re-enter the country without being subject to the global income tax, a maneuver that concerns tax experts.
"Affluent individuals will not take risks without clarity on global income taxes, wealth, donations, and inheritances," warned Theda Fisher, partner at the firm Withers Bergman LLP, which advises high net worth clients.
"Until there is legal certainty, many clients will not take the step," he added.
International tension and background review
Although the highest demand is expected to come from China and the Middle East, trade tensions with China and capital outflow restrictions could dampen interest from Asia.
Additionally, it is unclear how the background checks will be conducted to prevent criminals or foreign agents from accessing this immigration benefit.
The program could also face the pro-EB-5 lobby, the current investment visa that requires a smaller amount (around one million dollars) and ties the immigration benefit to job creation in distressed areas.
Any replacement or elimination of this program would require Congressional approval, which further complicates the future of the Trump Card.
An uncertain future
Despite the initial enthusiasm, the viability of the Trump Card will depend on clear answers to multiple legal and tax-related questions, as well as its ability to overcome political and technical resistance.
For now, the proposal remains a promise without a defined legislative framework, and with a potential market much smaller than what the White House suggests.
As Dominic Volek from Henley & Partners summarized, "Every week something new is announced about this card, but there are still many uncertainties regarding its ultimate success."
Frequently Asked Questions about the "Trump Gold Card" and its Implications
What is the "Trump Gold Card" and what does it offer?
The "Trump Gold Card" is an investment visa that offers permanent residency in the United States in exchange for an investment of five million dollars. This card aims to attract wealthy individuals to contribute to the U.S. economy. It offers privileges similar to those of a "Green Card," including a pathway to citizenship, but does not involve a direct purchase of the card itself.
What are the main obstacles to the implementation of the "Trump Gold Card"?
The main obstacles are legal, fiscal, and political in nature. It requires modifications to the U.S. tax code to provide tax exemptions for foreign income, which can only be approved by Congress with the approval of the IRS. Furthermore, it faces political resistance and doubts about its scope and viability, especially in comparison to the EB-5 program, which offers immigration benefits with a lower investment.
How many people are interested in the "Trump Gold Card," and who are the potential beneficiaries?
So far, more than 70,000 people have registered on the "Trump Gold Card" website. However, the true market is limited to around 276,000 individuals worldwide with a net worth of at least $30 million. Actual demand is estimated to be about 2,000 applications per year, far from the official projections. The highest demand may come from China and the Middle East, although there are trade tensions that could impact interest.
What are the tax implications of the "Trump Gold Card" for its holders?
The United States taxes the worldwide income of its citizens and permanent residents. Although Trump promised exemptions for foreign income for cardholders, this would require significant changes to the tax code. Without clarity on these issues, many potential clients may hesitate to apply for the program.
How does the "Trump Gold Card" affect current visa programs like the EB-5?
The "Trump Gold Card" has been proposed as a replacement for the current EB-5 program, which grants "Green Cards" to foreigners who invest between $900,000 and $1.8 million in projects that generate jobs. Any change to the EB-5 program would require Congressional approval, which complicates the implementation of the new card considering the opposition from various groups and sectors.
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