There has never been a more optimum time to start doing business in Argentina, with the country’s economic growth anticipated to reach 3.1% by 2019. Being a major global player in the production of agricultural commodities and boasting the second largest manufacturing ability in South America, the Argentinian market is a beneficial one to do business in.
Argentina has a large fiscal deficit, having recently experienced an economic downturn, which may pose a challenge to a market entrant. However, despite having the sixth highest Corporation Tax Rate in the world at 35%, Argentina made paying taxes less costly in 2017 by increasing the threshold for the 5% turnover tax. Improvements to the online portal for filing taxes has also made paying the levies easier.
The Argentinian government is proactively involved in the country’s business relations, frequently implementing new measures in a bid to stabilise the nation’s business environment and placing a tight control on trade and access to foreign exchange. This active involvement of the administration, in part, led to the World Bank ranking Argentina 117 out of 190 counties for ease of doing business in 2018.
Great value is placed on personal relationships when doing business in Argentina. In a country which was previously beset with political instability, reliance on strong long-term relationships remain an important factor. If those intending to do business in Argentina are prepared to do their research and adapt their business style to complement Argentinean culture, fruitful professional relationships should result in prosperous business gains.
The World Business Culture website contains vital information and actionable advice to help equip those doing business in Argentina with the understanding to navigate the country’s complex social and economic environment.