Lex Mundi Global Foreign Investment Restrictions Guide |
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Argentina |
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(Latin America/Caribbean)
Firm
Marval O’Farrell Mairal
Contributors
Sebastian Iribarne |
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| Please provide a short summary of the Foreign Investment Restrictions adopted by your jurisdiction. | In general, foreign investors who want to invest in Argentina, either by starting up new businesses or acquiring existing businesses or companies, do not require prior government approval except in regulated industries or under general rules such as antitrust regulations. |
| Is your regime focused on economic protectionism, national security, or a combination? | Argentina's regime is focused on a combination. |
| Who is considered a "foreign investor" and are only investments from particular countries covered? | Persons or entities domiciled outside of Argentina are considered “foreign investors.” In general, there is no distinction between particular countries to determine whether a person is a “foreign investor” or not. Certain tax, anti-money laundering and similar regulations do contain rules and restrictions that have different effects depending on the country. |
| What sectors are subject to Foreign Investment Restrictions screening? | Very few regulated industries, such as telecommunications. Purchase of farmland by foreigners is also subject to prior approval in certain cases. |
| What are the relevant thresholds? | There are no general thresholds for foreign investments. Depending on the nature of the investment certain restrictions may apply (for example, the maximum amount of acres of farmland that can be owned by foreigners in general and by a single foreigner in particular). A case-by-case analysis is required to determine if there are any thresholds that apply. |
| Is notification under Foreign Investment Restriction rules mandatory? | In general, no. |
| Is the relevant authority's approval required prior to closing? | In general, no, although there are exceptions. |
| What was the impact of COVID-19 on your foreign investment regime? | COVID-19 has not impacted the foreign investment regime per se. Certain FX regulations issued by the Executive and the Central Bank have restricted the purchase and transfer abroad of foreign currency, which impacts the ability of foreign investors to repatriate funds, but many of these rules were issued prior to COVID-19. |
| How active has your agency been in reviewing, delaying, modifying or blocking foreign investments? | There is no agency that reviews foreign investments in general. |
| On what grounds can enforcers review and block a foreign investment? How active have they been in the past 6 months? | In very few cases and based on specific legal grounds (for example purchases of farmland by foreigners). Other restrictions may also apply, such as under antitrust rules, but not because of the sole fact of the investment being foreign. In the past 6 months, we see no significant changes as compared to prior periods |
| Do you expect any regulatory developments over the next 6 months? | Not particularly addressed to foreign investments per se. However, FX regulations, tax regulations, customs regulations, etc., are regularly subject to amendments and developments that vary in relevance. There could be changes with significant impact in these areas over the next six months. |
Lex Mundi Global Foreign Investment Restrictions Guide
Argentina
(Latin America/Caribbean) Firm Marval O’Farrell MairalContributors Sebastian Iribarne
Updated 02 Oct 2023In general, foreign investors who want to invest in Argentina, either by starting up new businesses or acquiring existing businesses or companies, do not require prior government approval except in regulated industries or under general rules such as antitrust regulations.
Argentina's regime is focused on a combination.
Persons or entities domiciled outside of Argentina are considered “foreign investors.” In general, there is no distinction between particular countries to determine whether a person is a “foreign investor” or not. Certain tax, anti-money laundering and similar regulations do contain rules and restrictions that have different effects depending on the country.
Very few regulated industries, such as telecommunications. Purchase of farmland by foreigners is also subject to prior approval in certain cases.
There are no general thresholds for foreign investments. Depending on the nature of the investment certain restrictions may apply (for example, the maximum amount of acres of farmland that can be owned by foreigners in general and by a single foreigner in particular). A case-by-case analysis is required to determine if there are any thresholds that apply.
In general, no.
In general, no, although there are exceptions.
COVID-19 has not impacted the foreign investment regime per se. Certain FX regulations issued by the Executive and the Central Bank have restricted the purchase and transfer abroad of foreign currency, which impacts the ability of foreign investors to repatriate funds, but many of these rules were issued prior to COVID-19.
There is no agency that reviews foreign investments in general.
In very few cases and based on specific legal grounds (for example purchases of farmland by foreigners). Other restrictions may also apply, such as under antitrust rules, but not because of the sole fact of the investment being foreign.
In the past 6 months, we see no significant changes as compared to prior periods
Not particularly addressed to foreign investments per se. However, FX regulations, tax regulations, customs regulations, etc., are regularly subject to amendments and developments that vary in relevance. There could be changes with significant impact in these areas over the next six months.