Argentina announced that it will launch a new program that grants citizenship to foreign investors.
Within the scope of the application, which is the first of its kind in South America, Argentine passports will be issued to foreigners who have made a direct contribution of at least 350 thousand dollars to the country or purchased public bonds of 800 thousand dollars.
In the Ministry's statement regarding the regulation announced by the Minister of Economy Luis Caputo on the X account, it was stated that applications can be made in two ways.
Investors will be able to gain citizenship by transferring a non-refundable $350 thousand to the National Treasury or by purchasing $800 thousand government bonds to be specially issued for this purpose.
According to the news of Reuters agency, the spouses of the applicants included in the program and their single and childless children between the ages of 18-25 will be able to obtain citizenship by paying 100 thousand dollars to the Treasury, and their children under the age of 18 will be able to obtain citizenship by paying 25 thousand dollars.
The Ministry of Economy stated that the resources obtained will be used to strengthen the fiscal and financial structure of the Argentine Republic.
In the statement, it was noted that investments will be subject to a strict evaluation process that ensures traceability of funds, prevention of money laundering and national security.
In the government statement, different calendars were highlighted regarding when applications will begin. While the Ministry of Economy announced that applications will be opened in the last quarter of 2026, government circles noted that the application is planned to be implemented this year.
According to data from the Organization for Economic Co-operation and Development (OECD), Argentina, the third largest economy in Latin America, fell behind its regional rivals in the race to attract foreign direct investment last year.
While Argentina received 3 billion 134 million dollars in direct foreign investment in 2023, Brazil attracted 76 billion 877 million dollars and Mexico attracted 40 billion 871 million dollars in the same period.
MILEI'S Austerity Policies
Pro-free market President Javier Milei, who took office in December 2023, aims to increase the Central Bank's melting dollar reserves by cutting public expenditures, liberalizing markets and removing trade barriers.
The Milei government is trying to attract foreign capital to the country with the incentive package called RIGI.
Monthly inflation, which was 25.5 percent when Milei took office, dropped to 1.7 percent in August.
The government faces a hefty debt repayment schedule next year that will coincide with Milei's possible re-election bid.
Milei, who met with investors at the OECD Argentina Week event held in Paris, received an investment commitment of $10 billion from the French energy company TotalEnergies for oil and natural gas exploration projects in Patagonia and $4 billion from the Swiss mining company Glencore for a copper project.
RISK WARNINGS FROM ECONOMISTS
Criticisms about the planned program are also expressed. Economist Marcelo Elizondo told AFP that investors want to see whether the economic policies implemented are sustainable in the long term.
Economist Pablo Tigani, who criticized the Milei administration, pointed out the investor profile that the program would attract and warned that the system could attract suspicious people and drug traffickers who cannot shelter in other countries to the country.
The golden passport program was announced on the heels of the Argentine Supreme Court's decision to lift restrictions on foreigners' acquisition of rural land.
The court approved the Milei decree of 2023, which annulled the rule in effect since 2011 that limited foreign ownership to 15 percent.
