The Milei administration has made key changes to the Large Investment Incentive Regime (RIGI, by its Spanish acronym) via executive decree in the hopes of attracting companies with existing projects that have not yet joined. The program, which was ratified earlier this year with the Ley Bases, provides tax breaks, currency exchange perks, and other incentives to groups willing to make dollar investments in the country.

On Friday, the government announced in the official gazette that it had altered Article 60 of the regulations to further specify the conditions under which businesses can potentially benefit. These modifications stipulate that project expansions must comply with the RIGI requirements, that they exceed the minimum investment required for the corresponding business sector, and that the incentives will apply to new constructions rather than the original projects. 

The government likewise declared that companies must create or assign a branch dedicated to overseeing the expansion of said projects. Crucially, shared assets and infrastructure between original projects and their expansions will not affect a company’s eligibility for RIGI incentives.

In addition, the decree establishes new dispute resolution rules that will guarantee legal protection for their expenditures. According to the text published in the bulletin, these changes aim to “encourage new investments through a clear and transparent framework.” 

The RIGI first went into effect in August, just under two months after the Ley Bases was signed into law. Companies in the forestry, tourism, infrastructure, mining, technology, and steel sectors are eligible for benefits with a minimum investment of US$200 million. That threshold is US$300 million for oil and gas transportation and storage and US$600 million for offshore oil and gas exploration, as well as gas extraction and production for export.

The government program also allows investors from sectors that are otherwise ineligible if they position Argentina “as a new long-term supplier in markets in which it does not yet have significant participation.” For these businesses, the minimum investment is US$2 billion.