1. Introduction
   The Government of Argentina has implemented Law 27.742, known as the “Incentive Regime for Large Investments” (RIGI), with the goal of attracting and facilitating significant foreign investments in the country. The law was regulated through Decree 749/2024, which sets forth the specific conditions and benefits for investors participating in this regime
2. Objective of the RIGI
   The RIGI aims to promote investment in strategic sectors of the Argentine economy, fostering sustainable economic development, job creation, and technology transfer. Priority sectors include, but are not limited to, energy, mining, infrastructure, technology, and advanced manufacturing.
3. Key Benefits
   The main incentives offered by Law 27.742 include:
   • Tax Exemptions: Investors can benefit from exemptions on national taxes such as Income Tax, Value Added Tax (VAT), and customs duties for a specified period, which may be extended depending on the size and impact of the project.
   • Fiscal Stability: The law guarantees fiscal stability for investors for up to 10 years, ensuring that taxes directly affecting the investment’s profitability will not be increased.
   • Ease of Capital Repatriation: Foreign investors will be able to freely repatriate their profits and capital in foreign currencies, removing previous restrictions that limited the outflow of foreign currency.
   • Preferential Access to Capital Markets: Projects approved under the RIGI will have preferential access to credit and financing at subsidized rates from both public and private institutions.
4. Requirements and Conditions
   To be eligible, investment projects must meet certain requirements:
   • Minimum Investment: The law sets a minimum investment threshold, which varies by sector but is generally significant (between US$200 and US$600M), ensuring that only large-scale projects can access the regime.
   • Employment Commitment: Projects must generate a minimum number of direct and indirect jobs, thus promoting local development.
   • Environmental Compliance: Investors must comply with all applicable national and international environmental regulations, ensuring that investments are sustainable.
5. Application Procedure
   Decree 749/2024 details the procedure that investors must follow to apply for the regime:
   1. Project Submission: Investors must submit a detailed proposal to the National Investment Agency, which will be evaluated based on its economic, social, and environmental impact.
   2. Evaluation and Approval: Once submitted, the proposal will be assessed by an inter-ministerial committee that will decide whether the project is eligible for the RIGI benefits.
   3. Investment Agreement: If approved, an investment agreement will be signed between the investor and the Argentine State, specifying the rights and obligations of both parties.
6. Conclusion
   Law 27.742 and its regulation through Decree 749/2024 represent a significant opportunity for foreign investors interested in entering the Argentine market. The regime offers a range of fiscal, financial, and legal incentives designed to maximize profitability and minimize the risks associated with investing in Argentina.
   For more details or specific inquiries on how to take advantage of these benefits, please do not hesitate to contact us.

Luis H. Vizioli
Partner – V&T Abogados