Argentina will launch citizenship by investment program to raise dollars

Argentina will launch a program by the end of the year that will offer citizenship in exchange for investments. The initiative exemplifies the search by Javier Milei's right-wing government for new sources of resources to reduce the country's huge debt.

Candidates must make a non-refundable donation of US$350,000 (R$1.8 million) to the Argentine Treasury or purchase a zero-coupon public bond worth US$800,000 (R$4.1 million), the Ministry of Economy reported this Friday (2), adding that the program will become "operational" in the fourth quarter of 2026.

"Today, Argentina opens its arms to the many citizens of the world who want to invest, develop and deepen the path we are following", said the Minister of the Interior, Diego Santilli, this Friday, when announcing the program at an event on investments in Argentina, held in Paris.

The measure places Argentina in a small group of countries — most of them much smaller than the South American nation of 46 million people — that are vying to sell so-called "golden passports" to an international elite.

Transparency advocates have in recent years criticized the expansion of citizenship-by-investment programs in the Caribbean and the South Pacific for opening up space for corruption and security risks. Last year, the European Union's top court found Malta's program illegal and banned the practice in the bloc.

Argentina — which remains without access to international capital markets after a debt restructuring in 2020 — has sought several alternative ways to raise dollars to pay US$29 billion (R$151.1 billion) in debt denominated in American currency maturing between now and the end of 2027.

A consortium of consultancies that advises the government estimated that the program could generate around US$2.5 billion (R$13 billion) over the next five years.

Armand Arton, chief executive of Arton Capital, one of the consultancies, said that Argentina — whose passport allows visa-free travel to more than 160 countries — would be more attractive than most small island nations that offer immediate citizenship options.

"Having a G20 country, with the size and opportunities it represents, is, in my opinion, a very different proposal from those that exist on the market," he stated.

The Argentine Ministry of Economy said candidates would undergo a "rigorous assessment designed to preserve national security, the integrity of the financial system and the international prestige of Argentine citizenship."

But the program, which has not been debated in Congress, could be criticized by the opposition as Argentina approaches next year's presidential elections, Arton said.

"Programs like this have always become a political weapon in any election, and we hope that, over the next year, we will present the necessary results so that the government can defend its position."