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February 12, 2026
6
 min read

While many people instinctively look to Europe, you might be looking for something different. Maybe Europe just is not your vibe, and you would rather go against the grain. Whether it is a different cultural rhythm, a warmer climate, or fruity cocktails instead of dry wine, South America offers an alternative worth considering.Â
Indeed, Central and South America could be among the smartest choices you make. Despite outdated perceptions or negative media narratives, the reality on the ground tells a very different story. Millions of Americans and other foreign nationals already live across Central and South America, drawn by lower living costs, favorable residency laws, cultural richness, and a higher overall quality of life.
In 2025–2026, South America’s economy is showing moderate recovery and uneven growth after years of global shocks. It is increasingly attractive as a destination for long-term residence, citizenship, and life transformations for several compelling reasons. First, the region boasts a large, dynamic economy and population, with approximately 439 million people and a combined nominal GDP of about $4.38 trillion in 2025, making it one of the world’s significant economic regions with diverse opportunities in business, trade, and employment. Inflation has generally fallen into or near central bank targets in many economies, and Brazil’s central bank held interest rates at historically high levels (15 %) in early 2026 while signaling possible easing as price pressures moderate.
Second, many South American countries have shown broad improvements in quality of life and well-being over recent decades: for example, Uruguay was ranked first in Latin America in the 2025 Quality of Life Index with a score of about 139.81 (higher than other regional peers such as Chile, Costa Rica and Mexico) reflecting stronger living conditions, public services, and urban environment outcomes.
Third, politically, several South American countries are experiencing a pronounced shift toward conservative and pro-market leadership, with recent electoral victories and reform agendas in countries such as Argentina, Costa Rica, and Bolivia reshaping investor confidence, fiscal policy priorities, and broader regional policy debates.Â
Finally, South America’s natural and cultural richness, from the Amazon rainforest and Andes mountains to world-class coastlines and UNESCO heritage sites, supports one of the fastest-growing tourism sectors in the world, with tourism contributing hundreds of billions of dollars annually and creating millions of jobs, which in turn boosts local economies and international interest in long-term settlement.
Citizenship in South America is governed exclusively by national constitutions and statutory law, with each country defining its own legal pathways to nationality. While each jurisdiction recognizes several forms of citizenship under distinct legal provisions, court-based naturalization remains the most prevalent and enforceable route for foreign applicants, and in specific cases may result in direct access to citizenship and passport rights. Let’s look at a few practical examples.
In Argentina, citizenship is rooted in Law No. 346, the country’s long-standing nationality law, which has been modernized through Presidential Decrees of Necessity and Urgency (DNU) 366/2025 and DNU 524/2025. These reforms introduced a new legal framework allowing foreigners to obtain Argentine citizenship through a direct administrative process, with applications reviewed by the National Directorate of Migration (DNM) and investment oversight conducted by the Agency for Citizenship by Investment Programs (APCI) under the Ministry of Economy, eliminating the traditional multi-year residency requirement. In Uruguay, citizenship is governed by the Constitution of the Oriental Republic of Uruguay and Law No. 16.021, which define nationality by birth or descent and regulate naturalization for foreigners. Foreign nationals may obtain full legal citizenship through a Carta de CiudadanĂa, granted by the Corte Electoral, after meeting lawful residence and legal integration requirements. In Paraguay, matters of nationality fall under the exclusive jurisdiction of the Judicial Power, as established by the National Constitution of 1992. The key constitutional provisions are Article 146, which defines who is a natural Paraguayan national, and Article 148, which governs naturalization for foreigners. Under Article 148, foreign nationals may obtain Paraguayan citizenship through a judicial process if they meet four statutory requirements: legal adulthood, residence in Paraguay, engagement in a lawful profession or economic activity, and proof of good conduct.Â
Whereas terminology and procedures vary by country, most jurisdictions recognize a limited number of core legal categories through which nationality may be acquired. The most common routes are listed below.Â
Most South American countries follow the principle of jus soli, meaning citizenship is granted automatically to individuals born on the territory of the state, regardless of the nationality of their parents. For example, Article 1 of Argentina’s Citizenship Law No. 346 states that all individuals born or to be born in the territory of the Argentine Republic are Argentine citizens by birth regardless of their parents’ nationality, with the sole exception of children of foreign ministers and diplomatic staff, reflecting the country’s jus soli principle. This rule applies with narrow exceptions, typically limited to children of foreign diplomats or individuals in transit. As a result, South America remains one of the most birthright-friendly regions globally, with citizenship conferred at birth and full political and civil rights attached from the outset.
Citizenship by descent allows individuals born outside the country to acquire nationality through a parent, and in some cases a grandparent, who is a citizen. Eligibility, generational limits, and registration requirements differ by jurisdiction. For instance, in Chile, citizenship by descent is established in the Political Constitution of the Republic of Chile, where children born abroad to at least one Chilean parent or grandparent who was themselves Chilean by birth or naturalisation are considered Chilean nationals from birth, meaning they have the right to Chilean nationality through their bloodline. In most cases, descent-based citizenship requires formal registration with a civil registry or consulate and proof of lineage through official records. Unlike naturalization, this category typically does not require residence or physical presence in the country.
Naturalization is the most common pathway for foreign nationals without family ties. It generally requires:
Naturalization is not automatic upon completing the residence period; approval remains discretionary and is assessed on a case-by-case basis.
In several South American jurisdictions, courts or other competent authorities may grant citizenship outside standard statutory timelines in well-documented and substantiated cases. These decisions are typically grounded in constitutional principles and judicial discretion rather than rigid administrative rules.
Such cases commonly involve factors such as family unity (for example, marriage to or parenthood of a national citizen), long-term social and economic integration, sustained lawful residence, meaningful economic or professional contribution, recognized cultural, scientific, or humanitarian achievements, or other exceptional personal circumstances acknowledged under domestic law and jurisprudence. Importantly, the assessment is not purely quantitative (e.g., number of years of residence) but qualitative, focusing on the applicant’s genuine connection to the country.
Uruguay illustrates this model clearly. Under Article 75 of the Constitution of the Oriental Republic of Uruguay, the Electoral Court is empowered to grant legal citizenship (Carta de CiudadanĂa) to foreign nationals who can demonstrate residence and real, effective ties to the country. In practice, this allows for a discretionary, case-by-case evaluation based on integration into Uruguayan society, rather than strict adherence to uniform timelines. As a result, applicants with strong evidence of social, economic, and civic integration may qualify for citizenship earlier than standard expectations, provided their case is well prepared and properly documented.
Citizenship by investment does not exist in South America as a standalone legal category. While investment may support residence status or strengthen an individual naturalization case, citizenship is granted only under constitutional or statutory pathways and is never automatic or transactional.
An important exception currently under development is Argentina, where a citizenship-by-investment framework is in the process of becoming effective through recent legislative and regulatory reforms; however, even under this emerging model, Argentine citizenship remains subject to state review and formal approval under domestic law, rather than being conferred automatically in exchange for capital.
Citizenship by marriage is not automatic in South America, but in certain jurisdictions it may provide a facilitated pathway to naturalization. Marriage to a national commonly reduces statutory residence requirements or strengthens an application by evidencing family unity and social integration. In most cases, however, the foreign spouse must still undergo a formal naturalization process, demonstrate genuine marital cohabitation, and satisfy baseline conditions such as lawful residence and good conduct. For example, in Colombia, the general five-year permanent residence requirement for naturalization is reduced to two years for foreign nationals who are married to, or in a permanent union with, a Colombian citizen, provided these conditions are met. As a rule, marriage functions as a supporting legal factor, rather than an independent or automatic ground for the acquisition of citizenship.
Citizenship by adoption is generally recognized where a foreign minor is legally adopted in accordance with domestic law. In such cases, the adopted child is often treated as a citizen by descent, provided the adoption is finalized by a competent court and properly registered with the civil authorities. The exact legal effect depends on national legislation, but most South American jurisdictions require that the adoption create a full legal parent–child relationship, ensuring that nationality is granted on the basis of family unity and the best interests of the child rather than residence or discretionary approval. For example, in Paraguay, adoption is permitted not only for Paraguayan citizens but also for foreign nationals who are legally resident in the country, provided they meet statutory requirements under domestic family and child-protection law; where a foreign minor is adopted by a Paraguayan citizen through a full adoption (adopción plena), this legal relationship may serve as the basis for the child’s acquisition of Paraguayan nationality in accordance with constitutional and statutory provisions.
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South America has become an increasingly attractive region for individuals seeking a second citizenship or long-term legal residency outside traditional high-barrier jurisdictions. As global mobility becomes more regulated and tax systems more interconnected, countries such as Uruguay, Paraguay, and Argentina stand out for offering constitutionally protected pathways to citizenship, realistic timelines, and comparatively flexible residency requirements. Unlike investment-based programs or discretionary schemes, South American naturalization frameworks are grounded in law and court oversight, providing applicants with legal certainty rather than policy-driven promises. Combined with strong global mobility, widespread acceptance of dual citizenship, and tax systems that largely focus on residence rather than nationality, South America has evolved from a niche alternative into a deliberate long-term strategy for globally mobile entrepreneurs, investors, and families.
A streamlined route to citizenship, where the final approval stage may take as little as 3–12 months after eligibility.Â
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Globally, naturalization is a long game. According to OECD data, most countries require 5–10 years of residence before citizenship becomes an option. South America stands out because, once eligibility is met, the final citizenship process can move comparatively quickly.
Full access to account opening and ongoing servicing with established South American banks.
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For many globally mobile individuals, the real problem isn’t passports - it’s banking. Without local residence or citizenship, account opening often means rejections, capped functionality, or constant compliance reviews. Among South American jurisdictions, Uruguay is widely regarded as having the region’s most stable and internationally aligned banking system, frequently ranked highest in Latin America for financial soundness, regulatory quality, and anti-money-laundering compliance by international institutions such as the World Bank and International Monetary Fund. Uruguay’s banks are known for conservative risk management, strong capitalization, and long-standing experience serving international clients.
A family-inclusive pathway that enables spouses and dependents to apply together.
Unlike jurisdictions where dependents are an afterthought, South American systems are family-centric by design. For instance, Argentina explicitly provides family reunification programs for spouses, children, and dependent parents of citizens. Uruguay’s reunification framework covers spouses, minor children, and dependent relatives, while Paraguay offers permanent residence pathways for qualifying family members.
No requirement to renounce existing citizenship when acquiring a new citizenship and passport.
Many countries, like India or Spain, still require applicants to renounce their original nationality - a dealbreaker for most globally minded individuals. South America is refreshingly different. Argentina allows naturalized citizens to retain their existing citizenships, and Uruguay explicitly recognizes the coexistence of multiple nationalities. Paraguay’s framework is more nuanced, relying on reciprocity treaties, but still allows dual nationality in specific cases.
Access to company formation and active business operations throughout South America.
South America is not just a “Plan B” - it is a market of over 295 million people within Mercosur. Citizenship or long-term residence simplifies company formation, contract execution, hiring, and banking. Uruguay is frequently used as a regional headquarters due to its stability and legal clarity. Paraguay attracts entrepreneurs with lower operating costs and territorial-style taxation. Argentina, despite its complexity, remains a major consumer and talent market.
Applicable official tax exemptions may be available, subject to local regulations.
Tax outcomes are often the decisive factor. Paraguay applies a territorial tax system, meaning individuals are generally taxed only on Paraguayan-source income, with a 10% rate applying to both personal and corporate income. Foreign income, when properly structured, is typically excluded.Â
As another example, Uruguay offers a powerful incentive for new tax residents: a 10-year exemption on certain foreign income, or alternatively a reduced flat rate, depending on the option selected. This regime has made Uruguay increasingly attractive to high-net-worth individuals relocating assets or investment income
Visa-free or visa-on-arrival access to over 150Â countries, with the potential for expanded U.S. access. According to the Passport Index (2026 data):
This includes visa-free access to the EU/Schengen Area, the UK, Japan, Singapore, the UAE and most of Latin America. While U.S. visa-free access is not currently included (Chile remains the exception), these passports still offer significant global mobility without the political or financial barriers seen elsewhere.
Despite procedural differences between countries, South American citizenship programs are built around a shared set of legal principles. While timelines and enforcement vary by jurisdiction and legal pathway, most programs assess applicants against the following core requirements.
Most countries require applicants to demonstrate lawful immigration status, either through residence or a court-recognized exception:
Authorities generally look for evidence of a real and ongoing link to the country:
A clean background is a universal requirement across South America:
Applicants must demonstrate that they can support themselves lawfully:
Language and civic requirements vary by country and pathway:
In addition to substantive legal criteria, citizenship applications across South America require strict documentary compliance. While exact lists vary by country, applicants are commonly required to submit:
Overall, South American citizenship frameworks prioritize lawful presence, good conduct, economic independence, and genuine ties to the country, with courts playing a central role in evaluating applications, particularly where exception-based pathways are involved.
In South America, obtaining a passport is almost never an immediate outcome, it is usually the final step of a longer residency or naturalization process. In practice, standard citizenship routes often take 2 to 10+ years, depending on the country, the applicant’s physical presence, and compliance with residency and integration requirements. However, most jurisdictions allow for citizenship by exception, which can significantly shorten the timeline in specific, well-documented cases. Where such exceptions are granted, passport issuance may occur within 3 to 12 months, without the need to obtain residency first or spend several years in the country. That said, these accelerated routes are discretionary, case-specific, and non-automatic: approval depends on judicial review, the applicant’s background, and the strength of the legal justification. As a result, South American passports obtained through standard naturalization should be viewed as long-term strategic outcomes, with fast-track timelines possible only in exceptional cases.
In global mobility discussions, citizenship, residency, and tax residency are often treated as interchangeable. In reality, they describe three separate legal relationships, governed by different laws and assessed by different authorities. Confusing them is not just common - it is one of the main reasons people unintentionally trigger tax liabilities in countries they never planned to be taxed in.
Citizenship is the most permanent legal status an individual can hold. It defines a person’s formal bond with a country and grants a passport, unconditional right of entry, political rights, and consular protection abroad. In most cases, citizenship is lifelong and difficult to revoke.
Importantly, citizenship exists independently of physical presence. Millions of people hold a passport of a country they do not live in, and may not have visited for years. Despite this, only a very small number of countries worldwide apply citizenship-based taxation, like the United States and Eritrea. In over 90% of jurisdictions, taxes are linked to residence, not nationality. For most people, holding a passport alone does not determine where taxes are paid.
Residency is an immigration status - not an identity. It grants the legal right to live in a country beyond tourist limits, usually under conditions such as employment, investment, passive income, or family ties. Residency may be temporary or permanent, renewable, and often conditional on minimum stay or ongoing compliance.
Global mobility trends show how widely misunderstood this status is. As international advisory firms repeatedly note, the most common misconception is that residency automatically creates tax obligations. In practice, it does not. It is entirely possible to hold a residence permit while remaining a non-tax resident, provided physical presence and economic ties remain limited.
This distinction has become increasingly relevant with the rise of digital nomads. By 2024, estimates suggested that over 35 million people worldwide were living and working outside their home country, compared to fewer than 5 million before 2020. Many governments responded by introducing digital nomad and passive income visas that explicitly separate immigration permission from tax residency.
Tax residency determines which country has the right to tax your income, and it is assessed based on facts, not visa labels. Authorities typically look at physical presence (often around the 183-day threshold), but also at where a person’s family lives, where business decisions are made, and where economic interests are centered.
Unlike citizenship or residency, tax residency is reassessed every year. A single extended stay, an unplanned relocation, or a shift in business activity can change a person’s tax status without any formal application or notification. This is why individuals can become tax residents unintentionally, and only discover it after receiving inquiries from tax authorities.
While it is perfectly legal to hold multiple residence permits, being considered tax resident in more than one country at the same time can lead to double taxation unless a treaty applies. Among internationally mobile professionals and high-net-worth individuals, it is increasingly common to deliberately separate all three statuses: citizenship in one country, residency in another, and tax residency in a third.
In practice, the three statuses often point to three different countries. A passport may provide security and mobility, a residence permit may offer lifestyle and access, while tax residency determines where income is reported and taxed.
Overall, governments assess behavior, not intentions. Border records, banking data, property use, and family location matter far more than what a visa label suggests. As a result, misunderstanding the distinction between citizenship, residency, and tax residency remains one of the most expensive mistakes in cross-border planning. Thus, understanding how these three layers interact is not optional -Â it is the foundation of any sustainable relocation, investment, or international lifestyle strategy.
Despite growing interest in South American citizenship, several persistent misconceptions continue to circulate - often fueled by comparisons with investment-based programs in other regions.
Understanding these distinctions is critical. South American citizenship is best viewed not as a shortcut, but as a structured legal process rooted in residence, integration, and constitutional principles.
Golden Harbors provides end-to-end guidance for individuals seeking lawful, strategic pathways to South American citizenship. Our role goes beyond document preparation as we focus on legal feasibility, jurisdiction selection, and long-term compliance. We assess each client’s profile against applicable constitutional law, migration regulations, and judicial practice in the relevant jurisdiction to identify realistic timelines and the most appropriate residence or citizenship pathways, including fast-track options available in exceptional cases. Our team coordinates locally with licensed attorneys, notaries, and migration authorities to ensure applications are structured correctly from the outset.
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Victoria
Lead Attorney at Golden Harbors

Victoria
Lead Attorney at Golden Harbors