Argentina

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Investing in Argentina

FDI in figures | Why you should choose to invest in Argentina | Procedures relative to foreign investment | Finding assistance for further information

FDI in figures

Argentina is ranked 4th amongst the South American countries that attract the most FDI flow (after Colombia, Brazil and Chile). The three main investors in Argentina are the United States, Spain and France. Argentina's poor ranking in this classification is due the disastrous image conveyed by the country during the economic crisis which affected its economy between the end of 90s and the beginning of 2000.

Foreign Direct Investment	2005	2006	2007
FDI inward flow (millions USD)	5,265	5,037	5,720
FDI stock (millions USD)	55,139	59,753	66,015
Performance Index*, ranking on 141 economies	82	83	90
Potential Index**, ranking on 141 economies	64	60	-
Number of Greenfield investments***	41	48	109
FDI inwards (in % of GFCF****)	13.4	10.1	9.0
FDI stock (in % of GDP)	30.1	27.9	25.2

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest in Argentina

Strong points: A wealth of raw materials, good level of education, a human development indicator noticeably above the Latin American average, and strong growth for several years now.
Weak points: The banking sector is fragile and under-capitalized; investments in energy are insufficient and inflation is high.
Government measures to motivate or restrict FDI: The government has established various measures to encourage foreign investment in the form of incentives to invest in capital goods and infrastructures, financing programs, capacity promotion (employment and quality amongst others), encouraging innovation and technological development, geographic incentives and sectorial investments.
For further information, consult the ProsperAr website.
Bilateral investment conventions signed by Argentina: Argentina has signed bilateral agreements on investments with 60 countries.
To see the list of countries, click here.
To see the conventions, click here.

Procedures relative to foreign investment

Freedom of establishment: Yes
Acquisition of holdings: All sectors of the economy are open to foreign investors, on an equal footing with national investors.
The investment regime is a liberal regime. Foreign investment is not subject to any authorization or declaration, whatever the amount or the activity envisaged, and even if this means taking a majority share in the capital of a local company.
Obligation to declare: In principle, no declaration.
Competent organization for the declaration
Requests for specific authorizations: There is no declaration, in principle, except for large projects which require the agreement of the competent ministry. For example: the TGV (high speed train) with the Ministry of Infrastructure.

Finding assistance for further information

Investment aid agency: Prosperar Foundation
Fundacion Invertir Argentina
Other useful resources: Centro de Economia Internacional

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