Argentina unveils passports-for-investment scheme

BUENOS AIRES: Argentine President Javier Milei’s government said Friday that the country would offer citizenship to foreigners who invest at least $350,000 in the country.

Latin America’s third-largest economy lagged far behind Brazil and Mexico in the foreign direct investment stakes last year, according to the Organization for Economic Cooperation and Development (OECD).

Milei, a free-market radical, has slashed public spending, deregulated the economy and dismantled trade barriers in a bid to make Argentina more competitive and boost the Treasury’s dwindling dollar reserves.

But investors are still waiting for Argentina’s roller-coaster economy to “prove that what it’s doing will actually be sustainable over time,” economist Marcelo Elizondo told AFP.

The Citizenship by Investment Program announced by the government on Friday to coincide with Argentina Week in Paris proposes two “simple and transparent mechanisms” for obtaining an Argentine passport.

Investors can either make a “direct, non-refundable contribution of $350,000 to the National Treasury” or “subscribe to an $800,000 government bond created specifically” for the purpose.

The spouses and children of applicants can also secure citizenship, in exchange for a contribution of $100,000 to the Treasury, or $25,000 if they are under 18 years of age.

“The resources obtained will be used to continue strengthening the fiscal and financial position of the Argentine Republic,” the government said.

Writing on X, the economy ministry said that the investments would be subject to a “rigorous evaluation process (…) guaranteeing the traceability of funds, the prevention of money laundering, and national security.”

But some analysts expressed doubts over what kind of investor the scheme would attract.

“It could lead to us bringing in drug traffickers, people of dubious origin who are not allowed in other countries,” said economist Pablo Tigani, a frequent critic of Milei.

‘Argentina up for sale’

Milei travelled to Paris this week to meet with investors at Argentina Week at the OECD.

He came away with several investment pledges, including a promise from France’s TotalEnergies to plow $10 billion into oil and gas exploration in Patagonia and a commitment by Swiss mining company Glencore to spend $4 billion on a copper project.

Milei’s golden passport scheme, which is slated for implementation later this year, comes days after the Supreme Court abolished limits on the purchase of rural land by foreigners.

The court on Tuesday upheld a 2023 decree by Milei repealing a 15-percent cap on foreign ownership of such land in place since 2011.

Veterans of Argentina’s 1982 war with Britain over the Falkland Islands – known to Argentines as Las Malvinas – had bitterly opposed the decree, accusing Milei of “putting the Republic of Argentina up for sale.”

A demonstration has been called for next week to condemn the change in the law, which the opposition will seek to block in Parliament.

According to the OECD, Argentina received $3.134 billion in foreign direct investment last year, a fraction of $76.877 billion attracted by Brazil and the $40.871 billion secured by Mexico.