Investment Incentive Laws in Argentina and Neuquén

Why invest in Neuquén? 

Neuquén is positioned as an ideal destination for large investments thanks to a stable political environment, sustained economic growth and productive diversification that ranges from the hydrocarbon industry to agriculture and the knowledge economy. 

• Political stability: Alternating governments and consensus in the design of provincial public policies, with a clear commitment to territorial development. 

• Economic growth: The Gross Geographic Product of Neuquén grew by 57% between 2011 and 2022 

• Demographic growth: The province’s population increased by 31.8% between 2010 and 2023, strengthening the local labor force and domestic market. 

• Productive diversification: Development of services and added value in key sectors such as oil and gas, mining, agriculture and technology. 

National Program: Incentive Scheme for Large Investments (RIGI)

The RIGI offers a tax, customs and exchange flexibility scheme for companies that commit investments of more than USD 200 million. Its objective is to guarantee fiscal stability and legal predictability for 30 years, with arbitration mechanisms for the protection of rights. 

Tax Benefits 

• Income Tax: reduced rate of 25%. 

• Accelerated depreciation: movable goods and infrastructure. 

• Tax losses: transfer of unabsorbed losses from the fifth year onwards. 

• VAT: accelerated refund of balances in favor and payment through transferable Tax Credit Certificates. 

• Bank credits and debits tax: 100% calculation as an Income Tax credit. 

Customs Benefits 

• Imports: duty exemption for capital goods, spare parts, and inputs. 

• Exports: duty exemption after the first three years. 

Foreign Exchange Benefits 

• Export revenues: gradual free availability (20% first year, 40% second, 100% from third year onwards). 

• Foreign currency financing: no restrictions for local or external operations. 

Regulatory Stability 

• Long term: 30 years of tax, customs, and foreign exchange stability. 

• Legal protection: guarantee of non-affectation by future more burdensome regulations, supported by an efficient arbitration system. 

Programa Invierta en Neuquén –  Invest in Neuquén Program 

Its objective is to promote investment and the development of various economic activities in the Province of Neuquén, through the granting of different incentives and benefits, both tax and of other kinds, aimed at promoting economic growth, job creation, technological innovation, sustainability and the creation of small and medium-sized enterprises. all this in a framework of respect and preservation of the environment, in search of improving the quality of life of the inhabitants of the Province. 

Strategic Activities 

• Tourism, including hotels, gastronomy, travel agencies, sports and recreational activities. 

• Scientific, technological and innovation. 

• Agricultural, agro-industrial and forestry exploitation (and their related and derived activities). 

• Generation of Electricity, with special support for renewable energies. 

• Health sector-related activities, including the production and distribution of medicines, medical and disposable products, medical gases, and hazardous waste. 

• Related to hydrocarbon development and mining activities, which are defined as strategic by the Provincial Executive Branch. 

• Infrastructure and service development related to the above activities. 

Benefits and Incentives 

• Access to state-owned private real estate. 

• Exemption from provincial taxes. 

• Access to preferential financing terms. 

• Access to benefits from the FOGANEU Guarantee Fund. 

• Preferential treatment in provincial government bidding processes. 

• Support in obtaining quality certifications defined by the Enforcement Authority. 

• Subsidies for services such as electricity, gas, water, and communications, in accordance with agreements made with participating municipalities and service providers. 

 For more information, contact Centro PyME-ADENEU at: energiaymineria@adeneu.com.ar