United States Announces “Gold Card” Plan to Obtain Permanent Residency

On February 25, 2025, the U.S. government announced plans to launch a program to offer U.S. permanent residency and a path to citizenship for wealthy individuals willing to pay USD5 million. This program is being called the U.S. “Gold Card” visa.

Under the program, individuals would pay USD5 million to the U.S. government in exchange for a Gold Card, which would extend immediate permanent residency (“green card”) privileges and a path to U.S. citizenship. 

In the subsequent days, further details have been shared. As planned, the new Gold Card residency-by-investment plan would replace the existing EB-5 program. The EB-5 visa program is a system under which individuals may obtain U.S. permanent residency status to individuals who invest certain amounts to create businesses and generate jobs within the U.S. Under the rules of the existing EB-5 program, permanent residency is available to individuals who make a minimum investment amount of USD1,050,000 (or USD800,000 in certain targeted employment areas) into a U.S. business which creates full-time employment positions for at least 10 U.S. workers. This program has been very popular among many global investors, and in 2015 began running on a backlog for investors from certain countries, with some potential program participants reporting wait times of seven years or longer.

Details of the plan are being developed now, although the U.S. government has indicated the Gold Cards will be available to global investors in two weeks. Under U.S. law, enacting the new Gold Card plan would require an Act of Congress, as would repealing the existing EB-5 program. Legislation has not yet been proposed which would accomplish this, although there is parallel discussion about whether this could be achieved via an Executive Action directly by the President.

One item which has been discussed—and may or may not be ultimately included in the program—is exempting gold card holders from tax on their worldwide income, a benefit which would be unique to this program and differs from how U.S. citizens are taxed.

For any individual interested in pursuing a U.S. temporary visa or permanent residency, proper planning is critical in advance. It is particularly important to consult a U.S. tax professional prior to obtaining U.S. permanent resident status or relocating to the U.S. Specific considerations include:

• Upon becoming a U.S. tax resident, you will be taxed on your worldwide income from the date that U.S. tax laws treat as your “residency starting date”. Oftentimes your residency starting date can end up being the first day that you were physically present in the United States after your move, at which point your ability to engage in pre-immigration tax planning significantly narrows
• If you own significantly appreciated assets, you may wish to discuss with your tax advisors whether there are ways to efficiently “step-up” the cost-basis of such assets to fair market value prior to becoming a U.S. tax resident. This may be important to consider, as the cost-basis of your assets and investments do not automatically increase to fair market value upon moving to the U.S., which can result in the U.S. taxing gains on appreciation that had accumulated long before you became a U.S. tax resident. Conversely, if you can defer recognizing losses until after you become a U.S. tax resident, those losses can be recognized on your U.S. tax return and used to offset other income
• Without proper planning, the estates of deceased individuals who are considered domiciled within the United States will be subject to the U.S. estate tax on their worldwide assets to the extent the aggregate value of such assets exceeds a certain threshold
• It is also important to revisit your investment portfolio in advance. Certain foreign (meaning, non-U.S.) investments will no longer be considered tax efficient when held by persons who are U.S. tax residents. For example, offshore mutual funds and offshore ETFs will be subject to certain anti-deferral rules (referred to as the “passive foreign investment company” rules) which may impose an interest charge and penalty on dividends or sales of that investment. Additionally, if you own an interest in a foreign company, or are a beneficiary of an offshore trust, your legal and tax advisors should review your interest in any such entities to ensure that they will be efficiently positioned for U.S. income tax purposes
• It is also important to coordinate your change in residence not only with your U.S. tax counsel, but with tax counsel in the jurisdiction that you are leaving, as there may be tax consequences involved in the change of residency in both jurisdictions

HSBC Global Private Banking is continuing to monitor the news for updates regarding this announcement and how it may affect the global investors and families we serve. Our team of Private Banking Wealth Planners are well-equipped to work with you and your independent tax advisors to assist in U.S. pre-immigration, inbound investment, and global executive relocation matters under already established laws and rules.

Our team includes experienced professionals who work closely with ones’ legal and tax professionals to plan and implement custom solutions. We do not provide legal or tax advice. Please reach out to your HSBC Wealth Planner to discuss further.