Argentina offers 'golden passport' to investors

Argentina is preparing to launch a new program that provides for the granting of citizenship to wealthy foreign investors. The practice, announced by Economy Minister Luis Caputo at an investor event held in Paris, is expected to be open for applications before the end of the year.

With the program, referred to as a "golden passport," the government aims to provide new foreign currency inflows to the country and attract foreign capital. The plan, announced at a time when Argentina is seeking alternative financing sources due to its high debt burden and need for foreign currency, includes two separate options for investors.

PROGRAM REQUIREMENTS

The first option to be offered to applicants will be a non-refundable contribution of 311 thousand euros to the Argentine Treasury. In the second option, the investor will be required to invest 711 thousand euros in a new government bond that must be held for at least 7 years.

It is stated that the amount to be paid for family applications will increase according to the number of people. A contribution of approximately 444 thousand euros is envisaged for a family of four.

The Argentine Treasury has approximately 22 billion euros in foreign currency-denominated debt payments due in 2027. Since the government has postponed its return to international bond markets for now, it has turned to programs that will create new resources. According to a consortium of investment firms advising the government, the program could generate up to 2.2 billion euros in revenue if the expected number of applications is reached.

One of the prominent elements of the program for investors is the travel opportunities provided by the Argentine passport. Caputo stated that the Argentine passport is accepted in more than 140 countries. These countries include China, Russia, the Schengen area, and most of Latin America.

While "golden visa" practices that provide residency rights in exchange for investment exist in many countries, programs that grant direct citizenship and passport rights are implemented in a more limited way. According to industry experts, the profile of investors showing interest in such programs has changed after COVID-19; it is stated that wealthy individuals from the US and Europe, who have extensive visa-free travel opportunities, are also seeking alternative citizenship due to geopolitical uncertainties.

Caputo stated that the idea of citizenship by investment was brought up during Javier Milei's visit to Sun Valley in the US state of Idaho in July 2024. According to the minister's statement, some executives from the technology sector expressed their interest in Argentine citizenship during this visit.

Citizenship-by-investment programs are subject to international criticism due to risks of money laundering and identity concealment. The Argentine government, however, reports that audits will be conducted on applications. According to Caputo, intelligence and financial audit institutions will examine the identities, criminal records, and the source of the money to be invested by the applicants.