Argentina’s Milei Offers 30-Year Tax Breaks for New Industries

ARGENTINA · ECONOMY

Argentina’s government has sent Congress a sweeping package of investment incentives, offering decades of tax breaks to lure billion-dollar projects in industries the country barely has yet.

How the Investment Incentives Would Work

The bill, formally a regime for large investments in new industries, was sent to the Chamber of Deputies by President Javier Milei, Economy Minister Luis Caputo and the cabinet chief. Backers call it the “Super RIGI,” an expanded version of a 2024 incentive law. Only projects worth at least $1 billion can join, five times the older threshold.

The benefits are steep. Qualifying firms would pay income tax of 15%, against 35% for everyone else, and gain 30 years of fiscal stability. They would also win freedom to move foreign currency and relief from export taxes.

There are conditions. Companies must set up a dedicated project vehicle and invest a fifth of the committed sum within two years. Provinces and municipalities must formally sign on for projects on their soil to qualify.

The Industries It Targets

The regime applies only to activities that barely exist in Argentina, or are still experimental. The list reads like a map of frontier technology. It names artificial intelligence, semiconductors, advanced biotechnology and strategic digital infrastructure.

It also reaches into energy and materials. Green hydrogen, liquefied natural gas, small modular nuclear reactors, lithium-battery manufacturing and electric vehicles all qualify. Expansions of existing plants are excluded.

Why Milei Is Doing This

The government argues Argentina lost competitiveness over decades. It blames shifting rules, heavy taxes and currency controls for scaring off capital. The new regime is meant to offer long-term certainty instead.

The aim is to turn the country into a hub for high-value exports. Milei has framed it as a way to build entirely new industries and jobs. It is one of the most aggressive incentive packages the country has floated in decades.

What Came Before

The plan builds on the original incentive regime passed in 2024. By official figures, that scheme drew 38 projects, of which 14 were approved, with more than $107 billion in commitments. The new version raises the entry bar and widens the perks.

Argentina has already attracted some marquee interest. Last year a major data-center project tied to artificial intelligence was announced in Patagonia. The bill still needs approval in Congress before any of the new benefits apply.

Frequently Asked Questions

What is the “Super RIGI”?

It is a proposed regime offering large tax, customs and currency benefits to attract big investments in new industries. It expands a 2024 law of the same family.

How big must a project be?

At least $1 billion in qualifying assets, five times the $200 million floor of the earlier regime. Firms must invest a fifth of that within two years.

Which industries qualify?

New or experimental ones, including artificial intelligence, semiconductors, digital infrastructure, green hydrogen, lithium batteries and electric vehicles. Expansions of existing plants are excluded.

What does Argentina hope to gain?

The government wants to attract high-value industries it lacks today and to create jobs and exports. It argues long-term certainty can offset years of lost competitiveness.

Has it become law?

Not yet. The bill has been sent to Congress and still needs to be debated and approved before the benefits take effect.

Connected Coverage

For more on the region’s drive for capital, see The Rio Times on Carlos Slim’s $5 billion Mexico pledge and on CAF’s regional-integration plan.