Tax Implications of the US Golden Visa: A Complete Guide

Introduction

The intersection of immigration and taxation creates a complex landscape for wealthy individuals seeking new horizons through investment visa programs. With the recent announcement of the US “Gold Card” visa program by President Trump, understanding the tax implications of such investment-based residency options has become more crucial than ever.

Golden Visa programs have gained popularity worldwide as pathways to residency and citizenship through investment. However, the tax consequences of these programs often remain misunderstood, leading to unexpected financial burdens for investors. This is particularly true for the proposed US Golden Visa, which comes with its own unique set of tax considerations.

This comprehensive guide explores the tax implications of the US Golden Visa program, comparing it with similar programs worldwide, and providing essential insights for potential investors. Whether you’re considering this investment path or evaluating your current tax situation as a visa holder, understanding these tax dynamics is vital to maximizing your investment while remaining compliant with tax regulations.

What is the US Golden Visa?

The term “Golden Visa” generally refers to residency-by-investment programs that allow wealthy individuals to obtain residence permits in exchange for significant financial investments in a country. In February 2025, President Trump announced plans for a US version called the “Gold Card” visa program.

Key Features of the Proposed US Golden Visa

The proposed US Golden Visa would require a substantial investment of approximately $5 million, making it one of the most expensive investment visa programs globally. In return, investors would receive:

• Immediate permanent residency (similar to a green card)
• A pathway to US citizenship
• The ability to live and work in the United States
• Travel privileges within the US

This program would replace the existing EB-5 Immigrant Investor Program, which currently requires investments of approximately $1 million (or $900,000 in targeted employment areas) and the creation of at least 10 full-time jobs for US workers.

According to Commerce Secretary Howard Lutnick, the current EB-5 program is “full of nonsense, make-believe and fraud,” and the new Gold Card program aims to address these issues while attracting high-net-worth individuals to the US.

Comparison with Other Golden Visa Programs

The US is relatively late to the Golden Visa market, with over 100 countries already offering some form of investment visa program. Popular programs include:

• Portugal: Investments starting at €250,000 for cultural projects

• Spain: Real estate investments of €500,000

• Greece: Property investments of €250,000

• Malta: Combined investments and contributions totaling around €1 million

While these programs vary in investment requirements and benefits, the US program stands out for both its high investment threshold and its unique tax implications.

US Tax Residency Rules and the Golden Visa

Understanding US tax residency rules is crucial for potential Golden Visa investors, as these rules determine your tax obligations to the US government.

The Substantial Presence Test

The US determines tax residency primarily through the Substantial Presence Test, which counts the days you are physically present in the country. Generally, if you are present in the US for:

• 31 days during the current year, and

• 183 days during a three-year period (counting all days in the current year, 1/3 of the days in the previous year, and 1/6 of the days in the year before that)

You are considered a US tax resident and subject to US taxation on your worldwide income.

Golden Visa Holders and Tax Residency

Golden Visa holders would typically become US tax residents immediately upon receiving their visa, as they would hold permanent resident status (similar to green card holders). This means they would be subject to US taxation on their worldwide income, regardless of where they physically reside.

This is a critical consideration that distinguishes the US Golden Visa from many other countries’ programs, where tax residency often depends on physical presence rather than immigration status.

The Unique Tax Loophole in the Proposed US Program

Interestingly, the proposed US Golden Visa includes a significant tax benefit not available to US citizens or regular green card holders. According to President Trump’s announcement, Gold Card holders would not be subject to US taxes on their overseas income.

This creates a potentially lucrative tax advantage for wealthy international investors, who could maintain their global business interests without subjecting that income to US taxation—a benefit not available to US citizens, who must pay taxes on their worldwide income regardless of where they live.

Global Income Taxation and the US Golden Visa

The United States is one of only two countries in the world (along with Eritrea) that taxes its citizens and permanent residents on their worldwide income, regardless of where they live. This has significant implications for Golden Visa holders.

US Taxation of Worldwide Income

Under normal circumstances, US citizens and green card holders must report and pay taxes on:

• Income earned within the US

• Income earned from foreign sources

• Investment income from foreign assets

• Foreign business profits

• Foreign rental income

• Foreign pension distributions

This global taxation approach is a major consideration for potential investors in the US Golden Visa program, as it could significantly increase their tax burden compared to other countries’ programs.

The Proposed Exemption for Golden Visa Holders

The proposed exemption from taxation on foreign income for Gold Card holders represents a dramatic departure from standard US tax policy. This would create a situation where Golden Visa holders have more favorable tax treatment than US citizens themselves.

As tax experts have noted, this would be “a big departure” in tax treatment and could make the program particularly attractive to wealthy individuals who maintain significant business interests outside the US.

Tax Treaties and Foreign Tax Credits

Even with the proposed exemption, Golden Visa holders would need to navigate the complex web of tax treaties between the US and other countries. These treaties help prevent double taxation but require careful planning and compliance.

The US has tax treaties with over 60 countries, which can provide:

• Reduced withholding tax rates on dividends, interest, and royalties

• Exemptions for certain types of income

• Special provisions for retirement accounts and pensions

Understanding these treaties is essential for optimizing tax outcomes as a Golden Visa holder.

Tax Benefits of Golden Visa Programs Worldwide

While the proposed US Golden Visa offers unique tax advantages, it’s worth comparing these benefits with those offered by other countries’ programs.

Non-Habitual Residency Programs

Several countries offer special tax regimes for new residents, including Golden Visa holders:

• Portugal’s Non-Habitual Residency (NHR): Until recently, this program offered a 10-year period during which foreign-source income could be exempt from Portuguese taxation. While Portugal has modified this program, it still offers significant benefits.

• Greece’s Non-Dom Program: Offers a flat tax of €100,000 on global income for new tax residents who invest in the country.

• Italy’s Flat Tax Regime: New residents can opt to pay a flat tax of €100,000 on foreign income.

Tax Residency Requirements

A crucial difference between many European Golden Visa programs and the proposed US program is the physical presence requirement for tax purposes:

• In Portugal, Spain, and Greece, you can hold a Golden Visa without becoming a tax resident if you limit your physical presence in the country.

• In the US, Golden Visa holders would automatically become tax residents due to their permanent resident status, regardless of physical presence.

This distinction is significant for tax planning purposes, as explained by tax experts: “If you obtain residence without physically moving to a country, a golden visa country will not tax you. They only do so if you live in the country.”

Case Study: Tax Benefits Comparison

To illustrate the differences, consider this comparison of tax implications for a hypothetical investor with $10 million in global annual income:

This comparison highlights the unique position of the proposed US program, which would offer automatic tax residency but with a significant exemption for foreign income.

Common Tax Challenges for Golden Visa Holders

Despite the potential benefits, Golden Visa holders face several common tax challenges that require careful planning and professional guidance.

Double Taxation Risks

Even with tax treaties in place, Golden Visa holders may face double taxation in certain scenarios:

• Income from countries without tax treaties with the US

• Certain types of income not covered by existing treaties

• Mismatches in how different countries classify income

To mitigate these risks, investors should work with tax professionals familiar with both US tax law and the tax systems of countries where they hold assets or generate income.

Compliance with US Tax Filing Requirements

US tax residents, including Golden Visa holders, face extensive filing requirements:

• Annual income tax returns (Form 1040)

• Foreign Bank Account Reports (FBAR) for accounts exceeding $10,000

• Form 8938 for specified foreign financial assets

• Various forms for foreign corporations, partnerships, and trusts

Failure to comply with these requirements can result in significant penalties, even if no tax is owed. The complexity of these filings often necessitates professional assistance.

Exit Tax Considerations for US Citizens

For US citizens considering renouncing their citizenship to take advantage of Golden Visa programs elsewhere, the US imposes an “exit tax” on covered expatriates (those with high income or net worth).

As explained by tax experts: “If not done the right way, one can be subject to tens of thousands of dollars in failure-to-file penalties, as well as an exit tax and covered expatriate status.”

This exit tax essentially treats the expatriate as if they had sold all their assets at fair market value on the day before expatriation, potentially resulting in a significant tax bill.

Tax Planning Strategies for Golden Visa Investors

Effective tax planning is essential for maximizing the benefits of a Golden Visa while minimizing tax liabilities. Here are key strategies to consider:

Timing Your Application and Investments

The timing of your Golden Visa application and related investments can significantly impact your tax situation:

• Consider the tax implications in both your home country and the Golden Visa country

• Plan asset sales or business transactions to minimize tax impact

• Align your visa application with the tax year to optimize filing requirements

Structuring Investments to Minimize Tax Liabilities

How you structure your investments can dramatically affect your tax burden:

• Consider using holding companies in tax-efficient jurisdictions

• Explore trust structures that align with your estate planning goals

• Evaluate the tax efficiency of different investment vehicles (real estate, businesses, funds)

Working with Tax Professionals

Given the complexity of international taxation, working with qualified tax professionals is essential:

• Seek advisors with expertise in both US tax law and international tax planning

• Consider a team approach with advisors in both your home country and the US

• Regularly review your tax strategy as laws and your circumstances change

Maintaining Proper Documentation

Proper documentation is crucial for supporting your tax positions and demonstrating compliance:

• Keep detailed records of days spent in different countries

• Maintain documentation of the source and nature of all income

• Preserve investment and transaction records

Comparing Tax Implications Across Popular Golden Visa Countries

Different countries offer varying tax benefits through their Golden Visa programs. Understanding these differences can help investors choose the program that best aligns with their financial goals.

European Union Golden Visa Programs

EU Golden Visa programs offer the additional benefit of freedom of movement within the Schengen Area:

• Portugal: Despite recent changes to its NHR program, Portugal remains attractive for its relatively low cost of living and potential path to citizenship after five years.

• Spain: Offers no special tax regime for Golden Visa holders, but non-residents are only taxed on Spanish-source income.

• Greece: Provides a competitive program with relatively low investment requirements and a flat tax option for new residents.

Caribbean Citizenship by Investment Programs

Several Caribbean nations offer citizenship (not just residency) through investment, often with minimal or no income tax:

• St. Kitts and Nevis: No income tax, capital gains tax, or wealth tax

• Antigua and Barbuda: No tax on worldwide income

• Grenada: Only taxes income earned within Grenada

These programs typically require investments starting around $100,000-$200,000, significantly lower than European or US options.

Selecting the Right Program for Your Tax Situation

When evaluating Golden Visa programs from a tax perspective, consider:

• Your current citizenship and tax residency

• The source and nature of your income

• Your long-term residency and citizenship goals

• Family considerations and inheritance planning

• Business interests and investment preferences

As noted by experts, the impact of these programs varies significantly based on individual circumstances.

Future of Tax Policies and Golden Visas

The landscape of Golden Visa programs and related tax policies continues to evolve, influenced by economic needs, political pressures, and international tax cooperation.

Recent Changes in Golden Visa Programs

Several countries have recently modified their Golden Visa programs:

• Portugal restricted real estate investments to interior regions and commercial properties

• The UK eliminated its Investor Visa program entirely

• Greece increased its minimum investment threshold

These changes reflect growing concerns about the impact of these programs on local housing markets and questions about their economic benefits.

Potential Changes to the Proposed US Program

The proposed US Golden Visa program may face modifications before implementation:

• The $5 million investment threshold could change

• The tax exemption for foreign income might face opposition

• Additional requirements or restrictions could be added

As reported by Al Jazeera, the program has already generated controversy, with questions about whether it can be implemented without Congressional approval.

Global Tax Cooperation and Information Sharing

The era of banking secrecy and tax havens is rapidly closing, with initiatives like:

• The Common Reporting Standard (CRS) facilitating automatic exchange of financial information

• The US Foreign Account Tax Compliance Act (FATCA) requiring foreign financial institutions to report on US account holders

• Base Erosion and Profit Shifting (BEPS) initiatives targeting corporate tax avoidance

These developments make it increasingly important for Golden Visa holders to ensure full tax compliance rather than attempting to hide assets or income.

Conclusion

The tax implications of Golden Visa programs, particularly the proposed US Gold Card, represent a critical consideration for potential investors. While these programs offer valuable benefits in terms of global mobility, investment opportunities, and potential tax advantages, they also come with significant compliance requirements and potential pitfalls.

The proposed US Golden Visa stands out for both its high investment threshold and its unique tax treatment of foreign income. If implemented as announced, it would create an unprecedented situation where certain residents receive more favorable tax treatment than citizens themselves.

For investors considering any Golden Visa program, comprehensive tax planning with qualified professionals is essential. The right approach depends on your individual circumstances, including your current citizenship, the source and nature of your income, and your long-term residency and citizenship goals.

As these programs continue to evolve in response to economic, political, and regulatory pressures, staying informed about changes and maintaining compliance with all applicable tax laws will be crucial for protecting your investments and maximizing the benefits of your Golden Visa.

Explore Other Articles:

1. UK Skilled Worker Visa – Complete Guide

1. Sweden Job Seeker Visa – How to Apply
2. Portugal’s Job Seeker Visa – What You Need to Know
3. Germany EU Blue Card – Benefits and Requirements