Inversió estrangera directa (IED) a l'Argentina

FDI in Figures

FDI inflows in Argentina have been unstable for several years. According to the World Investment Report 2024 published by UNCTAD, the country was the 17th-largest recipient of FDI in 2023, with a total of USD 22.9 billion (from 15.4 billion one year earlier). At the end of the same period, the total stock of inward FDI stood at USD 128.8 billion. Figures from the Central Bank show that, as of 2023, Argentina's gross FDI liabilities totaled USD 127.556 billion, comprising USD 77.093 billion in equity and USD 50.462 billion in debt instruments. The United States was the top FDI source with USD 23.901 billion (19%), followed by Spain with USD 18.336 billion (14%) and the Netherlands with USD 14.565 billion (11%). By sector, manufacturing led with USD 49.235 billion (+5% year-on-year). Mining and quarrying followed with USD 29.124 billion (stable year-on-year), and wholesale/retail trade and vehicle repair reached USD 14.258 billion (–2% year-on-year). According to the OECD, FDI inflows in the first half of 2024 totalled USD 8.8 billion, compared to 10.2 billion in the corresponding period one year earlier.

The Argentine government actively seeks foreign direct investment, but economic insecurity and recurring crises hamper the task. The overall openness to foreign investment is below average. Still, Argentina has definite assets: its natural resources are considerable (copper, gas and oil) and its workforce is highly skilled and competitive. Both foreign and local investors typically operate under equitable conditions in Argentina. Nevertheless, foreign participation is barred in certain sectors like aviation and media. Additionally, there are limitations on foreign ownership of rural lands, water bodies, and border areas. Moreover, both domestic and international firms often cite a burdensome and unpredictable tax load along with inflexible labour regulations as hindrances to additional investment in Argentina. The Ministry of Foreign Affairs, International Trade, and Worship is the lead governmental entity for investment promotion through its Bureau of Investment, and there is currently no investment screening mechanism in place for inbound foreign investment. Argentina recently introduced tax incentives for investors in the automotive sector, which encompass accelerated depreciation and prompt reimbursement of VAT on purchases of new capital equipment, along with complete exemption (a zero percent rate) from export tariffs on manufactured goods generated by investment initiatives. To foster FDI, Argentina signed 48 investment agreements. Furthermore, in 2024, Argentina launched the Incentive Regime for Large Investments (RIGI) to attract major investments. RIGI offers tax, trade, and FX benefits for 30 years to projects over USD 200 million in sectors such as forestry, tourism, infrastructure, mining, technology, steel, energy, and oil and gas. The country ranks 76th among the 133 economies on the Global Innovation Index 2024 and 145th out of 184 countries on the latest Index of Economic Freedom. Lastly, the country scored 37/100 on the Corruption Perception Index, ranking 99th out of 180 countries.

What to consider if you invest in Argentina

Strong Points

Argentina's strong points for FDI include:

• Richness of natural resources
• A developed industrial base
• Deep and broad middle class
• Highly educated population
• National infrastructure is in deep need of renewal, which creates new opportunities for sales to or contracting with government in areas such as rail, telecommunications, electricity, etc.
• Government is oriented towards pro-market reforms, which already has led to a better business climate

Weak Points

Argentina's main weak points for FDI include:

• A fragile and undercapitalised banking sector
• Investments in electricity have proven insufficient
• High inflation
• High vulnerability toward commodity prices, especially those of agrarian products
• Macro-economic imbalance
• Fragile institutional framework

Government Measures to Motivate or Restrict FDI

The previous Argentinian Government led by President Macri had made significant economic changes, including an end to currency controls, new tax cuts and the collaboration with the IMF to improve the integrity of the country's economic data. The government led by Fernandez is also actively working to improve the transparency of administrative and regulatory processes.

Through legislative measures, Argentina tries to attract foreign investors in the gas, energy, technology, aeronautics and telecommunication sectors. Also, regional development plans for infrastructure have been launched. The development of access to internet, notably through the development of the fibre optic network, constitutes a promising investment opportunity promoted by the government. Argentina regularly organises events with foreign trade delegations. Programs to promote existing investments also exist, ranging from reimbursement of the VAT to sectoral incentives.

The local investment agency Invest in Argentina has been put under the direction of the Ministry of Foreign Affairs and a National Directorate for Investment Promotion has been recently established under the Under Secretary for Trade and Investment Promotion.

Bilateral investment conventions signed by Argentina

Argentina has signed bilateral agreements on investments with more than 60 countries.

To see the list of countries, click here.