IFC Rreview has published the following article written by Javier Canosa. https://www.ifcreview.com/articles/2026/july/argentinas-new-investment-promotion-framework-legal-certainty-as-a-policy-instrument/
Argentina has historically struggled to attract sustained foreign and domestic investment, largely due to macroeconomic volatility, regulatory instability, and restrictions on capital flows. Since December 2023, however, the administration of President Javier Milei has implemented a structural reform agenda aimed at reversing these conditions. At the core of this agenda lies a shift toward fiscal discipline, deregulation, and monetary normalisation, coupled with the introduction of two investment promotion regimes designed to restore predictability and incentivise capital deployment: the Large Investment Incentive Regime (RIGI) and the Medium Investment Incentive Regime (RIMI). These regimes represent not merely tax incentive programs, but a broader attempt to reposition Argentina as a jurisdiction capable of offering long-term legal stability in a historically unstable environment.
The RIGI: Large-Scale Investment And Regulatory Stabilisation
The RIGI, established under Law No. 27,742 and its implementing regulations, is the cornerstone of Argentina’s new investment framework. It targets large-scale projects in strategic sectors such as energy, mining, infrastructure, and technology, requiring investments that typically exceed USD 200 million, with higher thresholds applicable to hydrocarbons and export-oriented projects. Structurally, investments must be channelled through a dedicated Single Project Vehicle (SPV), ensuring ring-fencing of the project and regulatory traceability. From an economic standpoint, the regime significantly reduces the fiscal burden. The corporate income tax rate is lowered to 25 per cent, accompanied by accelerated depreciation mechanisms and the possibility of carrying forward tax losses without time limitation. Dividend taxation is also reduced over time, and indirect taxes—such as VAT and the tax on bank debits and credits—are neutralised through credit or refund mechanisms. Customs benefits complement this framework by eliminating import duties on capital goods and, after an initial period, export duties on project outputs.
However, the most distinctive feature of the RIGI lies in its foreign exchange regime. Beneficiaries are progressively granted full availability of export proceeds, and are exempt from the obligation to repatriate or convert foreign currency. In a country where foreign exchange controls have historically constrained investment, this element alone materially alters the risk profile of long-term projects. Equally significant is the regime’s legal stabilisation mechanism. Projects approved under the RIGI benefit from a 30-year guarantee of regulatory stability in tax, customs, and foreign exchange matters. The legislation goes further by providing that any subsequent regulation that undermines these guarantees is deemed null and void, and by granting access to international arbitration as a dispute resolution mechanism. This combination of stability, enforceability, and access to neutral fora effectively transforms the RIGI into a quasi-stabilisation agreement embedded in statute, a feature rarely seen in Argentine legislative practice.
The RIMI: Extending Incentives To Productive SMEs
Complementing the RIGI, the RIMI—introduced under Law No. 27,802—extends investment incentives to micro, small, and medium-sized enterprises. Unlike the RIGI, it is not sector-specific and applies broadly across productive activities, including industry, services, construction, and technology. The regime focuses on facilitating productive capital expenditure, covering investments in machinery, equipment, and infrastructure directly linked to production. Financial or speculative investments are expressly excluded, reinforcing the regime’s productive orientation. The principal benefits consist of accelerated depreciation and early recovery of VAT credits, thereby improving project cash flow and reducing the effective cost of capital.
While more modest in scope than the RIGI, these measures are particularly relevant for SMEs, for whom liquidity constraints often represent the primary barrier to investment. The RIMI also incorporates compliance safeguards, including minimum holding periods for assets and exclusion criteria for taxpayers with outstanding liabilities or prior offenses. Non-compliance results in the loss of benefits and the imposition of financial penalties, ensuring that the regime operates within a controlled fiscal framework.
Early Outcomes And Sectoral Concentration
In its initial phase, the RIGI has shown strong uptake, particularly in capital-intensive sectors. As of March 2026, approved projects exceed USD 25 billion, with a pipeline surpassing USD 60 billion. Notably, more than 97 per cent of these investments are concentrated in oil, gas, and mining, reflecting both Argentina’s comparative advantages and the scale requirements of the regime. Provincial adherence has also been significant, with key jurisdictions—particularly those rich in natural resources—formally adopting the regime, thereby ensuring its territorial applicability.
Assessment: From Incentives To Institutional Credibility
The introduction of the RIGI and RIMI signals a qualitative shift in Argentina’s approach to investment promotion. Historically, incentives were often undermined by subsequent regulatory changes, eroding investor confidence. The current framework seeks to address this credibility gap directly by embedding stability commitments within the legal architecture. From a comparative perspective, the RIGI aligns Argentina with jurisdictions that use stabilisation clauses and international arbitration to attract large-scale investment, particularly in extractive industries. Its novelty lies in translating these mechanisms from contractual arrangements into statutory guarantees. Nevertheless, the ultimate effectiveness of these regimes will depend on factors that extend beyond their formal design. Macroeconomic stabilisation, political continuity, and institutional enforcement will be critical in determining whether the promised legal certainty is perceived as credible by investors.
Argentina’s new investment promotion regimes represent an ambitious attempt to reposition the country within the global investment landscape. By combining tax incentives, foreign exchange liberalisation, and long-term regulatory stability, the RIGI—supported by the broader reach of the RIMI—offers a framework that addresses many of the structural barriers that have historically deterred investment. Whether this framework will succeed in generating sustained capital inflows remains contingent on its consistent application over time. However, as a matter of legal design, it marks a clear departure from past approaches, placing legal certainty at the centre of Argentina’s investment policy.
