U.S. President Donald Trump holds “The Trump Card” as he speaks with journalists onboard Air Drive One en path to Miami, Florida, U.S., April 3, 2025.
Kent Nishimura | Reuters
A model of this text first appeared in CNBC’s Inside Wealth publication with Robert Frank, a weekly information to the high-net-worth investor and shopper. Sign up to obtain future editions, straight to your inbox.
President Donald Trump‘s $5 million Trump Card has attracted sturdy curiosity from the abroad rich, but it surely faces authorized challenges and questions in regards to the potential market dimension, in line with immigration attorneys.
Trump launched the web site in June for his new immigration plan, first referred to as “the Gold Card” after which renamed “the Trump Card.” A short questionnaire requested events for his or her identify, electronic mail, area and whether or not the Trump Card could be for “self,” “household,” “partner” or “different,” in addition to whether or not the applying got here from a enterprise or particular person.
Commerce Secretary Howard Lutnick advised the Monetary Occasions that 70,000 folks had already signed up and that the cardboard could be produced from actual gold. In March he mentioned the potential marketplace for the playing cards was 37 million. He mentioned promoting 200,000 playing cards would internet $1 trillion for the Treasury and assist pay down the federal debt.
The Trump Card has energized the burgeoning marketplace for funding or “golden” visas, which permit the rich to purchase residency or citizenship in another country in trade for a six-figure or seven-figure funding. A file 142,000 millionaires will transfer to a different nation this 12 months, in line with Henley & Companions, pushed by rising political turmoil and unrest. The U.Okay. is predicted to lose a internet 16,500 millionaires resulting from a change in its tax program, in line with Henley. The UAE, the most important gainer, is ready so as to add a internet 9,800 millionaires whereas the U.S. is predicted to realize a internet 7,500.
The Trump Card would additionally arrive as many nations as soon as favored by the rich — together with Spain, Portugal and Italy — are tightening their investment-visa packages amid populist opposition and political backlash.
But in interviews with immigration attorneys, advisors to the rich and political staffers concerned in this system, they mentioned the Trump Card faces basic authorized and tax obstacles. What’s extra, even when it is authorized and finally supplied, the variety of patrons is more likely to be a fraction of what the White Home has prompt and will taper off after an preliminary burst of patrons.
“Every week there’s something else introduced that is placing the steps in place to finally get there,” mentioned Dominic Volek, group head of personal purchasers at Henley & Companions, which advises the rich on visas and passports. “However there are nonetheless quite a lot of query marks when it comes to how profitable it will likely be on the finish of the day.”
The most recent query facilities on demand. Whereas Lutnick touted the 70,000 sign-ups as proof of potential gross sales, anybody can join on the web site requesting extra data, no matter their internet price. Immigration attorneys, household places of work, bankers, wealth managers and all method of advisors to the worldwide rich mentioned they signed as much as keep knowledgeable on the Trump Card for his or her potential purchasers.
“I submitted two registrations so I can have entry to extra particulars when it turns into out there,” mentioned Theda Fisher, associate at Withers Bergman LLP, who advises rich purchasers.
The inhabitants of individuals exterior the U.S. price $30 million or extra – an inexpensive cut-off for these prepared to spend $5 million on a visa — is round 276,000, in line with the newest numbers from information agency Altrata.
Immigration attorneys mentioned the most important demand is more likely to come from China and the Center East. China has round 46,000 ultra-high-net-worth people (these price $30 million or extra), Altrata mentioned, whereas the Center East has round 19,000. U.S. commerce tensions with China and restrictions by the Chinese language authorities on capital flight may restrict the variety of rich Chinese language who purchase a Trump Card, attorneys mentioned.
Volek, who applauded this system in idea, estimated that demand for the Trump Card shall be round 2,000 a 12 months.
“I feel a pair thousand a 12 months is achievable,” he mentioned.
By nation, he mentioned demand will seemingly mirror that of the present EB-5 program, the longtime U.S. visa regime that provides candidates residency and a pathway to citizenship for about $1 million. China dominates the EB-5 program, with mainland Chinese language buyers accounting for as much as two-thirds of the 8,354 EB-5 visas issued in 2023, in line with State Division information. Different nations within the widespread EB-5 applicant pool embrace Vietnam, India, Taiwan and South Africa.
Different golden-visa advisors mentioned they’re seeing curiosity primarily from Mexico, the U.Okay., Russia and Brazil. The White Home hasn’t mentioned whether or not the $5 million card covers a household or simply a person, which may additionally affect demand.
Firms may emerge as main patrons of the Trump Card as they search tech expertise from world wide. Trump mentioned that Apple, for example, would purchase “quite a bit” of Trump Playing cards, in line with stories. (Apple declined remark).
Finally, demand will all rely upon the particular phrases of the Trump Card, that are already inflicting controversy. Trump and Lutnick have mentioned the Trump Card would exchange the EB-5, which is supported with heavy lobbying and bipartisan backers in Congress. The EB-5 program, which ties investments to job creation in under-employment areas, was reauthorized till 2027, so any adjustments or termination would wish congressional approval.
“The EB-5 program was created by Congress, and solely Congress could abolish it,” mentioned the American Immigrant Investor Alliance, which seeks to extend the variety of out there EB-5 visas.
Screening and vetting stay one other open query. After the U.S. found that Russians sanctioned after the Ukraine invasion had used its widespread non-domicile program (just like the Trump Card), it dramatically scaled again this system. It is unclear whether or not the Trump administration, which has been battling China over commerce, would permit unfettered entry to Chinese language nationals who apply. The administration additionally hasn’t commented on the way it plans to display for ties to terrorism, organized crime, money-laundering or international intelligence companies.
The most important hurdle for the Trump Card, nevertheless, includes taxes. The U.S. is among the few nations on the planet that taxes worldwide earnings, that means Americans and everlasting residents need to pay federal earnings taxes on earnings earned exterior the U.S. The one approach rich foreigners would purchase a Trump Card is that if they’re exempted from worldwide earnings taxes – giving Trump Card holders a large tax profit not out there to U.S. residents.
Whereas Trump confirmed that Trump Card holders could be exempt from abroad earnings, he mentioned in a Reality Social submit that “rich folks shall be coming into our nation by shopping for this card” and be “paying quite a lot of taxes,” since they might nonetheless pay state and federal taxes on U.S.-sourced earnings.
Altering the tax code for Trump Card holders would require congressional approval in addition to approval from the IRS, in line with tax specialists. To date, there is no such thing as a laws within the Huge Stunning Invoice or different payments addressing the change.
The unprecedented tax exemption may additionally result in loopholes. Rich People, for example, who’ve dual-citizenship in a foreign country may surrender their U.S. citizenship, purchase a Trump Card and regain entry to the U.S. freed from global-income taxes.
The administration has additionally but to offer details about whether or not Trump Card holders could be exempt from property and present taxes — that are sometimes extra vital and extra pricey than earnings taxes for the ultra-wealthy.
“There are a lot of questions we have now, together with how numerous tax positions shall be handled, the length of the power to exempt taxation of world earnings, property tax implications, and who shall be included in a one donation,” Fisher mentioned. “Because of this, we have now requested most of our purchasers to not register and take a wait and see strategy. Until this program actually is sensible from a long-term tax and property perspective, many high-net-worth people is not going to apply.”
