Argentina recently introduced the Incentive Regime for Large Investments (RIGI), an ambitious federal initiative designed to attract substantial investments across multiple sectors, including forestry, tourism, infrastructure, mining, technology, steel, energy, and oil and gas. Launched by Law 27.742 and effective from August 2024, RIGI offers powerful incentives for both local and international investors and provides robust protection of rights and benefits.
Key benefits
Tax and Customs Incentives: RIGI grants reduced corporate tax rates, accelerated depreciation, exemptions from import and export duties, and favorable tax treatment for input VAT. It also includes flexible handling of import and export procedures for project-related goods, creating a highly advantageous environment for investment.
Regulatory and Foreign Exchange Flexibility: Special Purpose Vehicles (SPVs) participating in RIGI benefit from relaxed regulatory controls and flexible foreign exchange rules, allowing currency retention and transfer for investment-related income. This flexibility supports long-term financial planning for multinational companies.
Legal Stability and Protection: RIGI ensures a stable regulatory environment for up to 30 years, protecting investors from future tax or regulatory increases that could impact project costs or viability. RIGI investments are deemed of national interest, reinforcing government support and prioritization of these projects.
Who can benefit?
Eligible entities include SPVs dedicated to RIGI-approved projects, suppliers of goods and services to these SPVs, and projects that position Argentina as a long-term supplier in new markets. Large-scale projects (minimum US$2 billion) aimed at strategic export development receive additional incentives.
Implementation Timetable
The RIGI program will accept applications until August 2026, with a possible extension to August 2027. Participating provinces include Buenos Aires, Chubut, Jujuy, Mendoza, Salta, San Juan, Córdoba, and Río Negro.
What does this mean for your investments?
For international investors and local businesses alike, RIGI offers a structured, tax-advantageous pathway to tap into Argentina’s critical sectors. The flexibility, comprehensive tax relief, and long-term stability it provides make Argentina a more competitive option for large-scale, strategic investments.
Source: Makler S.A.
