Foreign Investments in Argentina
This excerpt is from an open source article and is not necessarily the opinion of bostatic.com
It is worldwide known by now that Argentina devaluated it’s over rated peso during the first months of 2002, after one of the worst political and economical crisis in it’s late history.
Most foreign businessmen still have the picture of an extremely expensive country in which to invest their hard earned money. The 90s were the days of the one to one, peso and dollar were worth the same, at least for the over 27 million Argentineans. Those were the days of travelling abroad and importing almost everything, from computers to toilet paper. But the 90s are part of our past now. Today the peso rates 3 to 1 Dollar and 4 to 1 Euro, traveling abroad is an expensive alternative, and touring throughout this gorgeous country has become more and more appealing to locals as well as foreigners who very much appreciate the exchange rates. Moreover, it has become appealing to invest in Argentina thanks to the new political decision of treating foreign companies the same way -in legal terms- as the local ones. The local government through this policy aims to encourage foreign capitals to invest productively in Argentina in long term projects.
Through means of the Decrete from the executive power, number 1853/93, the law 21.382 states that there won’t be any special requirement for foreign companies to invest in Argentina, at the same time they’ll be entitled to relocate their liquid and productive profits at any desired time. The simplicity of the procedures as well as the reduced requirements and paperwork make these sort of investments even more appealing in the expansionist economic process Argentina is going through. In order to carry on a productive project in Argentina, the foreign investor or investors’ group would have to contact the local authorities regarding the basic documentation and requirements in order to start off. In this way it’s highly recommended to work with a bilingual staff to carry on with all the legal and social requirements and in this way avoid any misunderstanding. Even more it has become very common to carry on joint ventures or mix companies with local contacts that can work on the follow up on the spot without any restrictions of language, time or space.
These mix companies or projects that we’re talking about are specially important and interesting for it has appeared to be clear that there are many locals with outstanding projects and ideas, and many other people who happen to live abroad and are willing to invest in potentially good projects. That combination has proven to be brilliant. The particular case of Alan Faena a local designer and bright mind joint the outstanding Philippe Starck to bring back into life an old -nonetheless gorgeous early 1900s building and transform it into the El Porteño hotel and condominium located in one of Buenos Aires most preferential areas: Madero Docks.
This is just a mere example of the combination of the local and foreign brightness and ability to foresee a fantastic future.
Argentina has a tourist and cultural potential that hasn’t yet been developed to it’s highest exponent. The possibilities within this market are immense, and the fact that the country has now reached an economical and social stability result in a prosperous and propitious investment moment.
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