Trump sells permanent residency rights to make money, but is Melaine selling citizenship now? The Argentine government reportedly plans to introduce an investment-based citizenship program to attract global billionaires and provide the government with “blood transfusion”.
According to a report by the British 'Financial Times' on June 27, the Argentine government plans to introduce a 'golden passport' investment citizenship program this year. The goal is to attract wealthy individuals from around the world to contribute funds to the government, thereby helping to pay off its huge debts over the next few years. This initiative aims to make Argentina one of the most attractive destinations for investment citizenship in the world. However, critics worry that such an investment citizenship scheme could lead to corruption, pose security risks, and potentially violate Argentine constitutional provisions regarding the authority for nationality legislation.
According to two people familiar with the matter, the Argentine government plans to launch this program this year. Applicants can obtain Argentine citizenship by making a one-time, non-refundable donation of about $500,000, or by purchasing Argentine zero-interest sovereign bonds worth about $1 million. However, they also noted that since the government is still finalizing the details, the terms may change.
Trump’s “Immigration Gold Card” IC Photo
Officials hope that this plan will help to repay the billions of dollars in debt that Argentina will face in the coming years. Since the debt restructuring was completed in 2020, Argentina has been unable to return to the international capital market, so it is constantly seeking various alternative channels to raise funds in US dollars.
The Argentine Ministry of Economy in charge of this plan refused to comment.
Argentina is a member country of the Group of Twenty (G20) with a population of 46 million. Its citizens can travel to nearly 170 countries without a visa. The capital has well-developed infrastructure, and both the wine industry and tourism are major sectors in the country.
If the plan is implemented, Argentina will become one of the major countries worldwide to implement an investment-for-citizenship program. The visa-free treatment offered by its passports will also surpass all other similar programs currently in use.
In recent years, as governments around the world try to attract wealthy individuals from around the globe to provide funding, the 'golden passport' program has rapidly expanded in some parts of the world.
However, the gold passport programs in Europe and other regions have always been controversial. The European Court of Justice ruled that such programs are illegal last year. Transparency advocates criticize these programs for likely fostering corruption and posing risks to national security.
When Argentina launched this program, the liberal market government led by Muelle was striving to reshape the country's image. For a long time, wealth taxes and economic fluctuations have led many Argentine billionaires to move abroad. In 2020, one of Argentina's richest people, the e-commerce giant Mercado Libre’s founder Marcelo Gallpelin, moved to Uruguay.
In April this year, Peter Thiel, a wealthy American tech entrepreneur and founder of the data analytics company Palantir, temporarily moved his family to Argentina. People familiar with the matter said that this decision was partly due to his desire to closely observe the fiscal austerity measures and regulatory reforms implemented by Mila.
Arman Aldon, founder of Arton Capital, a consulting firm that designed this plan for the Argentine government and promoted the project with clients, said that Thiel was “a very influential spokesperson before the project was officially launched.”
He also indicated that the plan is likely not going to require applicants to live in Argentina for a long period of time, thus lowering the tax burden for participants.
According to relevant consulting agencies, Argentina’s investment naturalization program will attract American and European wealthy individuals who are concerned about political polarization in their home countries, changes in tax policies, and the potential risk of war between Russia and Europe in the future.
Another company that provided consulting services to the government, Latitude Group’s CEO Eric Mejera said, “In investing in citizenship programs, no country can compare with Argentina.” He compared this plan with the investment citizenship programs of some islands in the Caribbean and South Pacific.
Consulting firm Lincoln Global Partners founder David Lincoln said that many high-net-worth clients are interested in Argentina's strategic location, which is far away from conflict zones.
He said, “People are increasingly concerned about the future direction of the world, and this has become an important factor driving the growth of the entire industry.” He also pointed out that the cost of Argentina’s investment citizenship program is lower compared to New Zealand’s investment visas, which cost 5 million New Zealand dollars (approximately 3 million US dollars).
Last year, the Argentine government amended the regulations regarding nationality, with part of the purpose being to pave the way for this program. However, this measure still faces legal challenges, as the Argentine constitution stipulates that the formulation of nationality laws is a matter of congressional authority.
Currently, many major countries have introduced investment-based residency programs, but they do not directly grant citizenship. Donald Trump, a close ally of Milley, also introduced a “Gold Card Visa” program last year, which cost $5 million. However, due to the low number of applicants, the fee for the individual version was reduced to $1 million. Data from May showed that, compared to the US government’s target of 80,000 applicants, only 338 people actually applied, turning it into a self-performed farce.
Argentine neighboring country Paraguay began implementing a policy of investment-based immigration in April of this year, with a minimum investment amount of $70,000.
In contrast, the controversy surrounding investment citizenship programs is even greater. Some countries have already withdrawn from such programs in recent years.
Last year, the European Court ruled that Malta's investment citizenship program was illegal, stating that the program "turns obtaining citizenship into a purely commercial transaction." Previously, Cyprus and Bulgaria had already abolished similar programs. Therefore, this ruling also closes the last remaining channel for obtaining a "golden passport" within the EU.
In 2022, the UK abolished its investment residency visa program as part of measures to combat money laundering. Additionally, the UK also revoked visa-free treatment for citizens from some countries that implemented investment citizenship programs, including Dominica and Saint Lucia. The UK stated that such practices "pose a high risk in themselves."
Argentine immigration lawyer Paula Carreiro, who once worked in a government agency responsible for granting citizenship, said that the many security and reputation risks associated with investing in citizenship probably "outweigh the benefits that a country of its size and international status like Argentina can gain."
She added that "given this plan's implications on national identity and citizen status, the push for such a significant policy without broader political, academic, and institutional discussions is worrisome."
