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Some analysts have expressed concern over what kind of investors the citizenship scheme would attract, saying it could bring in people of dubious origin
Argentine President Javier Milei’s government on Friday said the country would offer citizenship to foreigners who invest at least US$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 Organisation for Economic Co-operation 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.
Photo: AFP
However, 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 said.
The Citizenship by Investment Program announced by the government 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 US$350,000 to the National Treasury” or “subscribe to an US$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 US$100,000 to the Treasury, or US$25,000 if they are younger than 18.
“The resources obtained will be used to continue strengthening the fiscal and financial position of the Argentine Republic,” the government said.
The Argentine Ministry of Economy said the investments would be subject to a “rigorous evaluation process … guaranteeing the traceability of funds, the prevention of money laundering, and national security.”
However, 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,” economist Pablo Tigani said.
