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Free Trade Zones in Argentina: Benefits, Opportunities, and Immigration Pathways

Free Trade Zones in Argentina​

Free Trade Zones (FTZs) in Argentina are special customs areas located outside the country’s “General Customs Area” where companies can import raw materials and export finished goods without paying customs duties or value-added tax (IVA). These zones were created to boost trade, attract foreign investment, and promote key industries such as agriculture, manufacturing, logistics, textiles, and IT. While corporations established in an FTZ used to pay the standard 35% corporate income tax, they benefit from reduced trade barriers, access to warehousing and industrial facilities, and streamlined logistics for both imports and exports. The most active FTZs are La Plata (Buenos Aires), Tierra del Fuego, and General Pico (La Pampa), each serving as a strategic hub for international trade and industry development.  The La Plata area is also allowing service-oriented companies to operate. For foreign investors seeking to expand into Latin America, Argentina’s FTZs present a valuable opportunity to reduce trade costs and position themselves competitively in the regional market.

They also serve as important entry points for those seeking Argentina residency by investment and long-term plans for Argentina citizenship.

Tierra del Fuego: Argentina’s Free Trade Zone and Investment Potential

Tierra del Fuego, meaning “Land of Fire,” is a remote archipelago at the southern tip of South America, divided between Argentina and Chile, and separated from the mainland by the Strait of Magellan. Its main island, Isla Grande de Tierra del Fuego, is surrounded by countless smaller islands, including the famous Cape Horn. The region is known for its dramatic landscapes of glaciers, mountains, windswept plains, and subpolar forests, as well as its rich wildlife such as sea lions, penguins, and condors. First inhabited around 8,000 BC by Indigenous groups like the Selk’nam and Yaghan, it was later visited by Ferdinand Magellan in 1520, who named it after the fires seen along the coast. Today, Tierra del Fuego’s economy is based on petroleum and natural gas extraction, sheep farming, manufacturing, and tourism, with Ushuaia and Puerto Williams competing for the title of the world’s southernmost city.

For investors and expats interested in moving to Argentina, Tierra del Fuego offers unique opportunities. Its free trade zone status connects with broader opportunities for running a long-term real business and securing Argentine citizenship by investment.

Decree 535/2025: Tierra del Fuego Free Trade Zone Opens Pathways to Argentine Citizenship

This regulation (Decree 535/2025) modifies the special fiscal and customs regime established for the province of Tierra del Fuego, Antarctica, and the South Atlantic Islands. It removes certain tax restrictions from earlier decrees (1139/88 and 1395/94) that were limiting the application of VAT and income tax benefits to companies operating in the Special Customs Zone. The measure targeting to strengthen the competitiveness of local industries by adapting the regime to the current economic context, ensuring that beneficiary companies aligned with the 2021 industrial promotion framework can fully access tax incentives. Ultimately, it aims to sustain industrial development, expand production, and reinforce Argentina’s strategic sovereignty objectives in the region.

For those exploring Argentina citizenship by investment programs, such reforms make the province increasingly attractive. Investors who establish operations here may eventually qualify for Argentina nationality, permanent residency, and even an Argentina passport.

New 2025 Changes in Tierra del Fuego Aligns with Argentine Citizenship by Investment

Additionally, the decree emphasizes that these benefits will only apply to companies that comply with the commitments set under Decree 727/2021, such as supporting long-term industrial diversification, investment, and sustainable growth in the province, particularly by investing in technology, knowledge economy, tourism, logistics, petrochemicals, and food sectors, while creating sustainable jobs. By lifting outdated restrictions and aligning tax incentives with today’s macroeconomic conditions, the government intends not only to secure the stability of existing industries but also to encourage new projects, increase the supply of locally produced goods to the continental market, and foster the province’s integration into national and international trade flows.

VAT Exemptions for Goods Entering Continental Argentina from Tierra del Fuego

This law states that certain items do not pay VAT when they enter the Continental Territory (Tierra del Fuego is an island). So, it’s a benefit for manufacturers on the island and for consumers on the mainland. These are the 39 items included in the law’s regulations.

Technology: cell phones, notebooks, netbooks, tablets, televisions, and digital cameras.

Household appliances: air conditioners, washing machines, microwaves, deep fryers, coffee makers, blenders, and vacuum cleaners.

Audio and video: radios, CD and cassette players, audio equipment, and speakers.

Other items: electronic games, digital watches, hair removal devices, and electric knives. 

For foreign entrepreneurs considering immigration to Argentina, these incentives represent both an industrial advantage and a potential residency pathway. Business participation in such programs can support eligibility for Argentina residency by investment. If their investment projects are approved by the Agency under the Migration Directorate, they can begin processing Argentine nationality to obtain a passport without the two-year residency requirement.

History of the 2023 Reforms in Tierra del Fuego Free Trade Zone

In 2023, Argentina announced plans to restructure the Tierra del Fuego Free Zone, a regime originally established by Law 19,640 in 1972. A study by the Fundar research center revealed that the tax exemptions granted to industries there cost the country over US $1 billion annually, equivalent to 0.22% of GDP. To address this, Fundar proposed a long-term reform (2024–2035) aimed at diversifying the productive base beyond electronics, introducing gradual tax adjustments, and shifting incentives toward local value-added activities and exports. The plan foresees phasing out special tax breaks for electronics, ultimately ending cell phone production in the zone, while promoting sectors such as tourism, energy, and the knowledge economy.

Other Free Trade Zones in Argentina: Locations, Industries, and Pathways to Citizenship by Investment

Argentina’s Free Trade Zones, established under Law No. 24.331 in 1994, are designated territories that benefit from exemptions on import duties and certain national taxes, designed to encourage industrial activity, exports, and regional development. Currently, the country has 11 zones (10 zonas francas and 1 área aduanera especial in Tierra del Fuego), located across provinces such as Buenos Aires (La Plata), Mendoza, Córdoba, Tucumán, Salta, Chubut, Santa Cruz, San Luis, and La Pampa. These zones support sectors including electronics, auto parts, textiles, machinery, logistics, and exports, with investors from the United States, Brazil, Germany, Spain, and other Latin American countries. While exports from free zones represented about 1.3% of Argentina’s total in 2004–2005, their role remains significant in attracting investment and employment. Goods entering free zones are exempt from duties and taxes on utilities, and exports to third countries can benefit from tax refunds. Oversight and development of these zones are coordinated by local and national institutions such as the Dirección Provincial de Zonas Francas (Tel: 54-0221-468-0500, [email protected], www.mp.gba.gov.ar) and the Asociación de Zonas Francas de las Américas (Cl 98 22-64 Of 510, Bogotá, Colombia, Tel: (57) 1-5239633, [email protected]).

 

Argentina currently operates ten Free Trade Zones (FTZs) that serve as export processing hubs, where companies benefit from exemptions on customs duties and VAT for goods imported into the zones. While businesses established in an FTZ can freely import raw materials, export finished products, and contract with Argentine clients, they remain subject to the standard 35% corporate income tax and must comply with all national corporate regulations. Popular zones include Tierra del Fuego, La Plata, and General Pico (La Pampa), which offer access to industrial space, utilities, and the possibility of 100% foreign ownership, provided companies maintain a physical office and meet standard requirements such as having at least two directors and two shareholders. These FTZs are particularly attractive for foreign investors seeking a gateway to the Argentine and regional markets with simplified trade logistics.

La Plata Free Trade Zone Overview

The La Plata Free Trade Zone (ZFLP), located in Ensenada, Province of Buenos Aires, just 60 km from the Port of Buenos Aires and 80 km from Ezeiza International Airport, offers significant operational, logistical, and financial advantages for foreign trade. It allows unlimited storage without customs duties, re-export of merchandise to any country without liens, and operations such as fractioning, repackaging, and labeling. Goods can be imported into the customs territory with duties paid upon nationalization or consigned to direct or indirect users from abroad. As a major regional supply and storage hub, the ZFLP enables re-export without taxes while allowing value-added processes to imported goods, including classification, lot formation, packaging changes, and quality improvements. Additionally, sales within the Free Zone can be conducted with Invoice E, making it a strategic gateway for international trade.

National Incentives and Immigration through Investment

For global entrepreneurs, free trade zones are not only business opportunities but also part of a wider strategy for immigration to Argentina. By leveraging an Argentina investment visa, investors can move to Argentina, secure residency, and eventually apply for Argentina citizenship by investment to obtain full Argentina nationality and an Argentina passport.

Argentina offers national incentives for both local and foreign investors, including tax breaks, VAT refunds, tariff exemptions on capital goods, and access to credit programs. Special regimes also support sectors like Agronomy, Energy, Mining, Health, Technology, Tourism, and Creative Industries, aiming to boost competitiveness and sustainable growth.

What is Pequeño Envío AAE

The “Pequeño Envío AAE” (Small Shipment AAE) is a simplified import regime in Argentina designed to make it easier for individual consumers in mainland Argentina to purchase products manufactured in the Special Customs Area (Área Aduanera Especial, AAE), such as in Tierra del Fuego, for personal use.

The program applies to manufacturing companies that have opted into the extension under Decree 727/21. Purchases under this regime are tax-exempt, including VAT, according to Law 19,640, and must be made for personal consumption.

1. Check If Selling Company Qualifies for the Pequeño Envío AAE Program

Seller must be a company based in the Special Customs Area (AAE) and adhered to the extension under Decree 727/21. Sales under this route are only to individuals in the continental territory for personal use (resale is not allowed).

2. Pick Products Approved for the Small-Shipment Regime

Start with categories enabled for the small-shipment program (e.g., mobile phones, TVs, monitors, microwave ovens, air-conditioners). A broader list of approved electronics under the 727/21 regime (e.g., notebooks, tablets, radios, audio equipment, washing machines, etc.) is available with their tariff codes.

3. Seller's Online Store Must Be Integration with ARCA

All purchases must be made online. Seller’s portal must connect (“interoperate”) with the ARCA systems for this regime. 

4. Compliant Checkout with Required Buyer and Order Fields

The order must capture: order number/date; seller name & CUIT; product code/description/quantity; FOB unit price and FOB total; buyer’s full name, CUIL/CUIT, email, phone, and address; plus this declaration text: “I declare that this transaction is carried out under the regime provided for in Decree No. 334/25.”

5. Enforce Purchase Limits Automatically per Recipient

Per recipient: up to 3 units of the same product type per calendar year, and max USD 3,000 FOB per order (or its peso equivalent at BNA seller rate from the business day before the purchase). There are 39 types of products, and no limit is mentioned for product types. 

6. Application of Tax Exemptions Correctly under Law 19.640

Orders under this regime enjoy the tax exemptions of Law 19.640, including VAT. In practice, manufacturers price and invoice the sale without charging VAT under this program’s rules.

7. Handling Product Identification Where Needed (IMEI for Mobile Phones)

For mobile phone devices, identified by IMEI, these purchases are excluded from the SiDIP system thanks to IMEI identification.

8. Sending Each Order to ARCA for Validation and Approval

Seller’s online sales platform must transmit the order data to ARCA. If the system validations pass, the order is recorded, and that record is enough to release the goods to the mainland market and deliver them to the buyer.

9. Keeping Origin Documentation for Customs Compliance

Only goods originating in the AAE qualify. If the product is found to have been sold without the relevant accreditation of origin and duly reported by the Commission for the Special Customs Area (CAAE), the customs service will proceed to charge the corresponding taxes.

10. Staying Within the Approved Product and Tariff Code Catalog

Sellers are responsible for making sure everything they list matches the approved product/tariff code lists tied to the Tierra del Fuego regime. Use the detailed annex as your master reference.