Argentina’s Citizenship Program Attracts Chinese Investors
Argentina has joined the list of countries offering investment-for-citizenship programmes to attract foreign investment. Such programmes lure in investors seeking to diversify their wealth and looking for alternative residency options. Argentina is particularly targeting the uber-wealthy from mainland China and Hong Kong, analysts have observed.
The Argentine government announced two investment options for aspiring citizens. One is a non-refundable investment of $350,000 to the National Treasury, and the other is a subscription to an $800,000 government bond created specifically for the programme. The application review process will begin this quarter.
The Buenos Aires scheme stands out from the other golden visa schemes as it excludes real estate as a qualifying asset. It was this singular factor which has mostly led to a property boom in the other countries which introduced such investment-for-citizenship programs.
Analysts believe that Argentina could appeal to sovereign portfolio aspirers, which include residence rights, citizenship, investments and global business interests. This golden visa program is a desirable option as it bypasses the traditional route to citizenship, which mandates a period of residency. This investment-for-citizenship initiative will also assist applicants with residence, work and mobility rights in the country.
Citizenship of Latin America’s third-largest economy comes with the added benefit of having access to the Mercosur. The Mercosur is an economic bloc comprising Argentina, Brazil, Paraguay, Uruguay and Bolivia to facilitate free trade and easier movement of goods, services, capital and people of member states. Therefore, APAC-headquartered businesses can now more easily set up or expand into the LatAm region if business owners have Argentine citizenship.
As the China-Argentina ties grow, the LatAm country is likely to attract a high number of applicants from mainland China and Hong Kong. This is also supported by a strong global demand for investment migration. China is one of Argentina’s biggest trade partners, with Chinese EV-makers like BYD looking for expansion possibilities in the country. With its lithium battery production capabilities and energy storage systems, Argentina is an attractive market for EV companies, most of which are headquartered in China.
Chinese citizens comprised two-thirds of all global investment citizenship and residency applicants from 2009 to 2019. As it is a Mercosur member state, holding an Argentine passport is of much value to foreign nationals, since the citizens of the bloc are permitted to work and reside in other countries in Mercosur.
Researchers believe that the citizenship program will only have a small bearing on the country’s real estate market in the short run. Since this initiative is only affordable to the ultra-wealthy, the real estate market will only bloom in luxury and popular neighbourhoods, accessible only to a particular income class. However, business owners and entrepreneurs must exercise caution, as Argentina has a history of aggressive taxation and capital controls.
Aside from business prospects, the appeal of the citizenship-investment program in Argentina is also closely linked to its lifestyle. Buenos Aires, which is known as the ‘Paris of the South,’ is a cultural capital. Food, culture and Argentina’s love for football are all important factors which attract people to the country and play an important role in influencing a person’s decision to relocate to and reside in the country.
However, regardless of the business and the personal appeal, consultancies are urging applicants to evaluate the Argentine citizenship investment program and its real estate prospects. LatAm is known for successive governments alternating between the left and right wings. Therefore, the requirements and eligibility of the investment-for-citizenship program could change after Argentina’s general elections next year.
