ARGENTINA: Response from Undersecretariat for Investment Development and Trade Promotion on Argentina foreign investment restrictions

Monday February 7 2011

Folowing a query on sectoral restrictions on Argentina foreign investment, the Undersecretariat for Investment Development and Trade Promotion provided the following information:

“The Foreign Investment Act (Law Nº 21.382) establishes foreign investor can invest in Argentina without any special approval and in the same conditions as local investors; both of them have equal rights and obligations. In order to provide you with further information about this issue we would like to send you a document which details Argentina foreign investment treatment in our country.

Consequently, there are no restrictions for investment in Argentina. However, it is worthy to note that can exist some limitations to avoid monopolies, as for instance, in the mass media sector.

Another important limitation is related to the real estate sector. Property purchases by foreigners are not subject to prior authorization except in the case of real estate located in frontier security zones (areas which are strategically located for national defense purposes). These areas are comprised of areas along the country’s land and sea borders and also include a zone surrounding military or civilian establishments inland which are particularly relevant for defense purposes.

Prior authorization is required for the transfer of ownership of real estate or the exploitation of permits and concessions located in security zones. This should be arranged with the National Commission of Security Areas (CNZS, for its acronym in Spanish).

With the aim of complement previous information, we would like to inform you that the following activities present some limitations for investment.

Weapons Manufacturing (Law Nº 20.429)

Fishing (Law Nº 24.922)

Broadcasting (Law Nº 22.285)

Domestic Air Transport (Law Nº 19.030)”.