Doing Business in Argentina

Argentina offers vast opportunities for foreign investors across sectors such as natural resources, energy, finance, infrastructure, and tourism. However, navigating the local tax system, corporate requirements, and compliance rules is crucial for businesses and non-residents considering operations in the country.

Investment Opportunities in Argentina

Argentina offers a wide array of investment opportunities across strategic sectors. Below, each key industry is presented with clear insights to guide foreign investors to attract foreign entities seeking long-term growth despite regulatory and economic challenges.

Renewable Energy & Energy Transition

• Argentina is poised to deliver 20% of its energy from renewable sources by 2025, up from 13% in 2023.

• Solar energy potential in provinces like Salta, Jujuy, and Catamarca is exceptional, while wind power in Patagonia benefits from consistent wind speeds above 9 m/s.

• The country holds the fourth-largest offshore wind potential globally and the highest onshore wind potential in Latin America.

• Investment incentives under the Renewable Energy Promotion Law (No. 27,191) and support via green financing mechanisms are available.

Mining: Lithium, Gold & Copper

• Argentina is located within the “Lithium Triangle”, with over 21 million tons in lithium reserves, attracting global players like Toyota and POSCO.

• Rio Tinto's $2.5 billion expansion in the Rincon lithium project demonstrates Argentina’s rising global prominence in battery-grade lithium production; construction is planned for mid-2025, with first output expected in 2028.

• The Gualcamayo gold mine is pursuing a substantial $665 million investment under the RIGI regime, featuring a carbonatos Profundos mine and a 50 MW solar facility, expected to contribute approximately USD 400 million annually in exports.

• Argentina houses robust gold, copper, silver, and boron reserves, with several active mining operations such as Salar de Olaroz (lithium) and Los Azules (copper).

Agribusiness & AgriTech

• Argentina remains a global leader in the export of soybeans, maize, beef, and other commodities, with annual agricultural export volumes reaching approximately $38 billion.

• Emerging segments such as precision farming, agroecology, and technology-driven supply chain management are gaining traction in provinces like Mendoza,

• The country’s vast arable land and favorable climate present long-term investment potential, especially when combined with modern AgriTech solutions.

Real Estate & Tourism

• Argentina’s real estate market is rebounding, with growing opportunities in residential, commercial, and tourism-related developments—especially in urban centers like Buenos Aires, Mendoza, and Rosario.

• The tourism sector is making a strong recovery, boosted by Argentina’s unique landscapes and cultural appeal. Investment in boutique hotels, eco-lodges, and digital travel platforms is particularly promising.

Economic data

Total population: 46,234,830 (last census 2022)

Currency: Argentine peso (ARS)

Official language: Spanish

Political system: Argentina is a representative, federal, and presidential democratic republic, where the president acts as head of state and government, and power is divided into three branches: executive, legislative, and judicial.

Economic system: Argentina combines elements of a market economy with state intervention. This means that, although there is private ownership and free competition, the government plays an active role in regulating and controlling certain sectors, especially in strategic areas such as energy and food.

Corporate Income Tax

Corporate income tax (CIT) is levied on Argentine companies and domestic entities on their worldwide income, while foreign entities and non-residents are taxed on their income from Argentine sources. Standard CIT rates are progressive, with a top tax rate of 35% applied to net income.

Taxable income is generally calculated based on financial statements prepared under Argentine accounting rules. Certain deductions and exemptions may apply depending on the sector and type of income.

Capital Gains Tax and Profits

Capital gains derived from the sale of equity interests, corporate bonds, government bonds, and other securities are subject to taxation under specific conditions. Non-residents may benefit from exemptions when selling Argentine equities listed on the local stock exchange, provided certain conditions are met.

Profits tax is applied to gross income from business activities, while dividends distributed to foreign beneficiaries are generally subject to withholding tax.

Securities, Bonds, and Financial Trusts

The Argentine financial market allows investment in a wide range of corporate bonds, government bonds, financial trusts, and other securities. Gross proceeds from sales are taxable unless specifically exempt.

Foreign investors participating in the public offer market or acquiring securities under certain conditions may benefit from favorable regimes, particularly in strategic areas such as energy, electricity, and infrastructure development.

Withholding Tax on Foreign Investment

Payments made to foreign investors, such as dividends, interest, or fees for services, are subject to withholding tax. The applicable tax rate varies depending on the income type and whether a tax treaty applies. For example, American Depository Receipts (ADRs) and securities under public offer may enjoy preferential treatment or exemptions.

In many cases, withholding tax represents a full and final settlement for Argentine tax purposes.

Business culture in Argentina

Argentine companies value respect, hierarchy, and clear communication. Decisions can take time, as negotiations often involve multiple levels of approval. Flexibility, patience, and an understanding of local business practices are vital.

Communication Style & Dynamics

Business conversations usually begin with small talk—football, family, local culture—before transitioning to formal matters. Meetings are collaborative: interruptions show engagement, not rudeness. Decisions tend to be reached over multiple discussions rather than in a single meeting. Avoid aggressive selling or confrontation; clear, tactful, and polite communication resonates better.

Standard Working Hours

In urban centers like Buenos Aires, the business day typically runs from 8/9 AM to 5/6 PM, with minimal reliance on siesta breaks, unlike in some provinces.

Communication

Argentines prefer personal interaction to calls or emails, which are considered impersonal. A firm handshake, steady eye contact, and professional attire all contribute to a strong first impression. Dress conservatively with style for business contexts.

Spanish is the norm, influenced by Italian. English is widely understood in Buenos Aires business circles, but using Spanish, even basic phrases, helps generate goodwill.

Accommodation

The Recoleta, Puerto Madero, and Belgrano areas are safe and close to embassies, government offices, and top-tier business centers. We can highlight some hotels to stay at, such as the Palacio Duhau – Park Hyatt Buenos Aires in Recoleta, or the Faena in Puerto Madero.

Embassies and consulates

The vast majority of embassies and consulates in Argentina are located in the Autonomous City of Buenos Aires (CABA). For example, the United States Embassy is in Palermo (Av. Colombia 4300), while many European and Latin American embassies are located in Recoleta and Belgrano.

Major cities such as Córdoba, Rosario, and Mendoza have consulates in their cities to serve their citizens and facilitate regional trade and immigration matters.