June 18 (UPI) — Argentina is preparing to launch South America’s first citizenship-by-investment program, an initiative that would allow foreign nationals to apply for Argentine citizenship in exchange for making significant investments in the country, as the government seeks to attract capital and promote projects considered strategic to the economy.

The proposal follows a model already used in other parts of the world. The United States, as well as several European and Caribbean nations, offer immigration benefits to foreign investors who make substantial economic contributions.

Paula Carello, president of the Migration Law Institute at the Rosario Bar Association, told UPI that the so-called “golden passport” would create a pathway for foreigners making significant investments in Argentina to obtain citizenship through naturalization without meeting the usual requirement of two years of residency.

Under the new program, said Carello, who also heads the law firm Lux Brumalis, the primary beneficiaries would be foreign investors with sufficient financial resources to undertake large-scale investments.

However, she cautioned that the government has provided very little information about the initiative and that “there have been no statements regarding the public tender launched at the end of 2025, nor about the program’s real objective.”

Still, she noted that Decree 524/2025 aims to encourage investment and job creation and that “from a strategic perspective, Argentina appears to be seeking to position itself as a competitive destination for high-net-worth individuals, entrepreneurs and international investors.”

The debate comes amid signs of growing interest in Argentina among international business figures. A recent report by The New York Times said billionaire Peter Thiel, co-founder of PayPal and one of Silicon Valley’s most influential investors, is considering Argentina as a possible alternative place of residence because of concerns about the political and fiscal situation in the United States.

According to the newspaper, Thiel has met in recent months with President Javier Milei and members of his cabinet. He has also temporarily relocated his family to Buenos Aires and is studying the possibility of establishing a residential base in the country.

The report added that the government is moving forward with the development of the program. Citing a source close to Thiel, it said authorities had considered offering him permanent residency or even Argentine citizenship. A spokesperson for Milei denied that such a proposal had been evaluated.

Beyond individual cases, Carello said the program should focus on sectors considered critical to Argentina’s development. She identified the knowledge economy, culture, technology, infrastructure, energy, tourism, agribusiness and social or community projects as priority areas.

“For the program to have a positive impact, it should not be limited to a simple transfer of money or passive investments. It should be linked to genuine investment, employment, innovation, regional development or the strengthening of strategic sectors,” she said.

Carello also raised one of the key questions surrounding such initiatives: whether they truly attract long-term investment that generates economic activity or merely bring in funds intended to satisfy administrative requirements in exchange for a passport.

For that reason, she said the institutional design of the program will be critical to determining its success or failure.

Gonzalo Brest, a tax and legal partner at KPMG Argentina, told UPI that one of the main attractions for investors is access to a passport with strong international mobility.

“The Argentine passport provides visa-free access to 169 countries and ranks as the 16th strongest passport in the world,” he said.

Despite that advantage, Carello noted that several key aspects remain undefined. Regulations implementing the citizenship law reform approved in May 2025 have not yet been published, leaving many of the program’s specific rules unresolved.

Outstanding issues include minimum investment thresholds, eligible sectors, methods for proving the lawful origin of funds and background checks related to criminal records, national security and anti-money laundering requirements.

It also remains unclear whether the benefit will extend to immediate family members, what documentation applicants will need, what type of connection to Argentina will be required and how authorities will verify that investments remain in place and generate measurable economic benefits.

Carello noted that Argentina already has an investment-based residency category under its Migration Law.

“It is a mechanism that barely functions because applications often become trapped in lengthy bureaucratic processes involving different state agencies,” she said.

Given that reality, Carello argued that before creating a fast-track path to citizenship, the government should first review and modernize the existing investment residency system.