Debt-saddled Argentina pitches ‘golden passport’ scheme to woo wealthy foreigners

Argentina pitches golden passport plan amid debt pressure

Poinews.com – Debt saddled Argentina pitches golden passport proposal to wealthy foreign nationals as the government seeks new sources of hard currency while facing substantial debt obligations and restricted financing options.

President Javier Milei’s administration plans to offer Argentine citizenship through either a direct payment to the state or an investment in a new government bond. Economy Minister Luis Caputo outlined the proposal at an investor event in Paris, with applications expected to open before the end of the year.

Applicants would have two main routes. The first is a non-refundable contribution of €311,000 to Argentina’s Treasury. The second is the purchase of a newly issued government bond worth €711,000, which investors would have to hold for seven years.

The cost would increase for families applying together. A family of four, for instance, would need to contribute €444,000 under the direct-payment option.

A bid to bring foreign currency into Argentina

Argentina is under pressure to find funds ahead of almost €22 billion in foreign-currency debt payments due in 2027. The government has delayed a broader return to international bond markets, prompting officials to consider alternative ways to raise revenue.

Investment companies advising Argentina have estimated that the citizenship plan could generate as much as €2.2 billion if demand reaches expectations. Debt saddled Argentina pitches golden passport access as a potential financial tool rather than a conventional immigration programme.

Residency-by-investment programmes are available in roughly 60 countries, but citizenship-by-investment schemes are much less common. Citizenship can grant a passport, political rights, and the ability to live and work in the issuing country, making it more valuable than residency alone.

Only around a dozen countries currently run active citizenship-by-investment programmes, many of them Caribbean states. Argentina would become the first South American country to introduce such a scheme.

Why Argentina’s passport may attract applicants

Caputo said Argentina’s passport could be a major draw for people whose existing travel documents come with strict visa requirements. Argentine citizens can enter more than 140 countries without obtaining a visa in advance, including China, Russia, the Schengen area and much of Latin America.

“The Argentine passport is highly valued, accepted in more than 140 countries,” Caputo said.

Argentina, a G-20 member with a population of about 46 million, offers applicants access to a country that includes Buenos Aires and the vast Patagonian region. For some investors, however, the appeal may extend beyond life in Argentina itself.

“It’s not only the benefits that you get within Argentina,” said Kristin Surak, a London School of Economics professor and author of The Golden Passport: Global Mobility for Millionaires. “You also get benefits globally in terms of where you can go.”

Demand for second citizenships has shifted since the COVID-19 pandemic. Alongside those seeking easier travel, some Americans and Europeans have pursued an additional nationality as protection against geopolitical uncertainty.

Nuri Katz, president of Apex Capital Partners, said Argentine citizenship could appeal to wealthy Americans as both a practical safeguard and a status symbol. Debt saddled Argentina pitches golden passport access at a time when affluent investors are increasingly considering second-country options.

FAQ: Argentina’s proposed golden passport

How much would Argentina’s proposed citizenship programme cost? Applicants could make a non-refundable €311,000 payment to the Treasury or buy a €711,000 government bond that must be held for seven years.

Would families pay more? Yes. Officials said a family of four would be expected to make a €444,000 contribution under the direct-payment route.

When could applications begin? Officials expect the application process to be available before the end of the year.

What would make an Argentine passport valuable? Argentine citizens can travel to more than 140 countries without arranging a visa in advance, including destinations in the Schengen area, China, Russia and much of Latin America.