Argentina: An Overview

Introduction

On 10 December 2023, a new administration took office in Argentina, led by President Javier Milei of “La Libertad Avanza” party.

On 26 October 2025, the mid-term national congressional elections were held, in which half of the seats in the Chamber of Deputies, the lower house of the Argentine Congress, and one third of the seats in the Senate, the upper house, were filled. Following the 2025 mid-term elections, President Milei’s party, “La Libertad Avanza”, secured 20 of the 72 seats in the Senate and 93 of the 257 seats in the Chamber of Deputies, becoming the largest single bloc in both houses and significantly strengthening the administration’s ability to advance its legislative agenda.

Since the current administration took office, a large number of measures aimed at reducing state spending, deregulating the economy and limiting government intervention in the private sector have been adopted. The current administration has indicated that it intends to continue implementing business-friendly policies, including deregulation of the economy, privatisations and cutting taxes, among other measures.

In June 2024, the Argentine Congress approved Milei’s most ambitious bill, known as Bases and Starting Points for the Freedom of Argentines (the “Bases Law”).

The Bases Law includes a Promotional Regime for Large Investments (Régimen de Incentivo para Grandes Inversiones or RIGI), a promotional regime granting tax, customs and foreign exchange (FX) benefits to qualifying projects, with a guarantee of regulatory, customs, fiscal and FX stability for 30 years from the respective regime accession date. Qualifying projects are those representing investments in excess of USD200 million, although specific minimum investments apply for certain activities:

• offshore exploration and exploitation, or gas exploitation for export – USD600 million;
• hydrocarbon transport and storage – USD300 million; and
• long-term strategic exploration projects – USD2 billion.

Qualifying projects must belong to the following sectors:

• industrial forestry;
• tourism;
• infrastructure;
• mining;
• technology;
• iron and steel;
• energy; and
• oil and gas.

In February 2026, the national government extended the deadline to apply for the RIGI for one additional year (through mid-2027) and expanded the regime to include upstream oil and gas projects, subject to a minimum investment of USD600 million.

As of July 2026, more than 40 projects have been filed with the national government for an aggregate amount of over USD140 billion (of which approximately 60% are energy-related projects): 15 have been approved by the national government, representing investments for an aggregate amount of over USD50 billion, many of which are already under development.

Additionally, in April 2026, the Argentine Congress passed an amendment to the Glacier Protection Law, which narrows the scope of protection to glaciers and periglacial geoforms that perform an “effective hydric function” in recharging water basins, granting provinces a greater role in defining protected areas – a reform expected to unlock mining investment in Andean provinces, although environmental organisations have announced collective actions challenging its constitutionality. In parallel, the Lower House of the Argentine Congress granted preliminary approval (media sanción) in June 2026 to the so-called “Super RIGI” (Incentive Regime for Large Investments in New Industries), which builds on the RIGI created by the 2024 Bases Law but targets emerging sectors – such as AI, data centres, semiconductors, lithium batteries and renewables – with a minimum investment threshold of USD1 billion per project. Benefits include a reduced 15% income tax rate, accelerated depreciation, zero export duties and import tariffs, and 30-year regulatory, tax, customs and FX stability; the bill is now pending before the Senate.

Main Industry Sectors

The energy, mining and technology sectors have been particularly active and account for most of the transactional activity (M&A, lending and capital markets, project finance, etc) in recent years. This trend should continue for the years ahead as these sectors benefit from the current local and global context.

• Oil and gas – Argentina’s energy rebirth is based on the development of shale gas and shale oil projects. Argentina has the second-largest shale gas reserves in the world and the fourth-largest shale oil reserves. Shale oil and shale gas production represents 50% of national output. More than 50% of unconventional resources are located in the Neuquén Basin, particularly in the Vaca Muerta formation. While the country still lacks the appropriate infrastructure to transport and export gas production, many projects are underway and others are in different stages of development. Indeed, significant progress has been made in recent years to construct the necessary incremental transportation capacity for oil and gas.
• LNG – The development of large-scale LNG projects in Argentina is one of the top priorities for the current administration and energy companies operating in the country. Specific projects are currently under development. The RIGI is key to unlocking these types of projects.
• Energy transition-related projects – The clean energy transition is driving a significant increase in global demand for minerals (not only lithium but also cobalt, nickel, copper and other rare earth elements). Argentina alone accounts for over 20% of the world’s lithium reserves, has the largest project pipeline globally, and offers certain competitive advantages from a cost perspective. Argentina’s lithium production has increased significantly, from less than 1% of global production in 1994 to approximately 8% in 2025. Further, experts believe that Argentina’s production will represent 13% of the world market share by 2030.
• Renewable energy (mainly wind and solar) – Renewable energy is also at the top of the list for local and international industry players. In addition, particular interest is being shown in blue and green hydrogen projects (on an industrial scale, although at a nascent stage).
• Power and electric energy – Private investment in the expansion of the power transmission system is also expected. Power transmission constraints are currently one of the main obstacles to the continuous expansion of Argentina’s energy sector. Recently, the Argentine government awarded the tender for 50% of the share capital of Citelec, the controlling shareholder of Transener, and concluded the privatisation of the Comahue hydroelectric dams – landmark deals of the Milei era (totalling approximately USD700 million) – representing one of the largest privatisations in the electric energy sector since the 1990s. It is expected that other companies in the energy sector will be privatised during 2026.
• Technology – The technology sector has also shown great potential, with many local companies having achieved “unicorn” status in recent years and now playing regional and international roles. The local venture capital ecosystem is reasonably well developed, and foreign angel investors are active in the country.
• Agribusiness – Argentina benefits from a significant role in the global agricultural economy. It is one of the largest producers and exporters of soy-derived products. Soy and sugar cane are also extensively cultivated for biofuel production, thereby placing the country as a leading player in the global biodiesel market.

Given the ambitious agenda of President Milei, several regulatory changes (including the privatisation of some state-controlled companies and the normalisation of the foreign exchange market) have been introduced, and more are expected in the short term, in addition to those included in the Bases Law.

In anticipation of structural changes, the Milei administration has introduced long-awaited reforms to reduce red tape and inefficiencies in dealings with the government, and continues to do so. Further, updates to tax, labour, capital markets, and corporate laws and regulations continue to be discussed and implemented. The Bases Law (including the RIGI and potentially the Super RIGI) has triggered novel investment opportunities in the country and accelerated projects currently under analysis.

In February 2026, Argentina and the United States signed the Agreement on Reciprocal Trade and Investment, announced in November 2025, seeking to drive long-term growth, expand opportunity, and create a transparent and rules-based environment for commerce and innovation. The Agreement will enter into force following the exchange of legal notifications between the parties and, as of the date hereof, remains subject to ratification by the Argentine Congress.

All these changes and the administration’s agenda should favour M&A activity generally, as well as the potential reopening of international capital and credit markets for the sovereign, certain sub-sovereigns and leading corporates. Due to Argentina’s volatile history, foreign investors continue to monitor economic and political developments cautiously. Thus, it would be reasonable to expect that transactional activity in the coming years will be mainly driven by companies already operating in the country, though analysis and preliminary activity in connection with direct foreign investment and cross-border financing should also increase.