ARGENTINA: An Introduction to Private Wealth Law

The Current Political Landscape: Midterm Elections in Argentina

Argentina will hold its midterm elections in October 2025, a key political milestone for the administration of President Javier Milei. The outcome will largely depend on the government’s ability to sustain the current macroeconomic stabilisation, particularly the downward trend in inflation and the containment of exchange rate volatility under the FX band regime established as part of the latest International Monetary Fund (IMF) agreement.

If the administration can maintain this trajectory and avoid a disruptive devaluation, it may approach the midterms from a position of relative strength. This is especially true given the persistent fragmentation of the Peronist opposition. Although recent legal developments involving former President Cristina Fernández de Kirchner have triggered some degree of political cohesion within the movement, the opposition remains divided in terms of leadership and electoral strategy.

​In this context, the recent political agreement between the ruling party and the centre-right PRO to forge an electoral alliance in Buenos Aires Province stands out as a significant step. Buenos Aires Province is historically the stronghold of Peronism, and a competitive alliance in this jurisdiction could significantly shift the electoral balance. A defeat for the opposition in the province would not only weaken its national influence but could also mark the end of Kirchnerism as a dominant political faction within the movement.

Therefore, if the government succeeds in consolidating its recent economic gains, including lower inflation, fiscal discipline and a stronger central bank, it could enter the October midterms from a position of renewed strength. A solid performance would enhance its legislative influence, allowing it to push forward long-awaited structural reforms. Until now, the administration has navigated a fragmented Congress with more success than expected; gaining a stronger foothold would mark a new phase, shifting from containment to transformation.

Economic Plan and Tax Policy Direction

President Javier Milei’s administration has laid out a clear economic strategy: reduce the fiscal deficit, bring down inflation and restore confidence in Argentina’s institutions. Though still in its early stages, the programme has involved aggressive monetary policy, deregulation of prices and tariffs, and initial steps to simplify Argentina’s notoriously complex tax system.

On the tax side, the government has pledged to streamline the system by reducing the number of national taxes, eliminating overlaps and simplifying compliance. One of the most significant areas under review is value added tax (VAT), long criticised for its complexity, broad range of exemptions and administrative burden.

VAT Reform and Broader Tax Initiatives

Argentina is undergoing significant tax reform aimed at simplifying its complex system. The centrepiece of the proposal is the creation of a unified tax (“Super IVA”), which would merge national VAT, provincial gross income taxes and municipal levies into one. Although it may carry a higher nominal rate, final consumer prices are expected to decrease due to the removal of embedded costs from multiple layers of taxation. A revenue-sharing mechanism among the federal, provincial and municipal governments is also planned.

Additional proposed reforms include:

• elimination or consolidation of minor national taxes, such as the bank transaction tax;
• greater digitalisation of tax administration via the Revenue and Customs Control Agency (Agencia de Recaudación y Control Aduanero; ARCA), with expanded electronic invoicing and real-time reporting;
• adjustment of progressive personal income tax to account for inflation; and
• reduction of the corporate tax burden, currently at an effective rate of 39.5%.

The reform emphasises restoring taxpayer trust, reducing bureaucratic burden and fostering formal economic activity. However, these measures remain under legislative review, and the tax landscape remains uncertain, necessitating careful planning.

In parallel, the Incentive Regime for Large Investments (Régimen de Incentivos para Grandes Inversiones; RIGI), established by Law 27.742 in 2024, remains in force. It offers favourable conditions – such as lower tax rates and streamlined trade procedures – for large-scale investments, particularly in strategic sectors like energy and mining.

Foreign Exchange Controls and Cross-Border Considerations

As part of its agreement with the IMF and efforts to reduce the fiscal deficit and curb inflation, the Central Bank of Argentina (Banco Central de la República Argentina; BCRA) has launched Phase III of its economic programme. Key measures include:

• introducing a crawling band for the official exchange rate, allowing the dollar to fluctuate between ARS1,000 and ARS1,400 with monthly adjustments of 1%;
• eliminating the dólar blend and easing foreign exchange restrictions for individuals;
• allowing profit repatriation for foreign shareholders starting from FY 2025; and
• relaxing payment terms for foreign trade operations.

Maintaining a controlled exchange rate remains one of the government's top priorities, as it seeks to enter the 2025 mid-term elections with inflation under control – its main political and economic goal.

What Should Private Clients Expect?

While no significant tax increases or new measures targeting high net worth individuals appear on the immediate horizon, recent history – including the extraordinary wealth tax, exceptionally high personal asset tax rates and an increasingly aggressive tax administration – still weigh heavily on private clients’ perceptions. As a result, even in what appears to be a relatively calm period from a fiscal standpoint, private clients remain cautious. In a country defined by cyclical policy shifts, this window of stability offers an opportunity for thoughtful tax and estate planning.

Should the government perform well in the upcoming midterm elections, it may gain the political capital needed to advance broader reforms, including potential improvements to the tax framework. Such changes could help shift the current climate from one of fiscal defensiveness to a more investment-friendly environment, encouraging long-term capital deployment within Argentina. This would mark a cultural as well as a policy shift: from viewing wealth as a target to recognising private capital as a driver of growth. For private clients, this could open the door to a new phase of planning – one focused not solely on protecting wealth, but on actively creating and deploying it in a more predictable and constructive setting.