Argentina operates two types of tax-exempt trading zones to encourage importation and exportation activities. These are the Free Trade Zones (FTZ) and Special Customs Areas (SCA). There are ten free trade zones (FTZ) in operation in Argentina that were created to encourage business growth and development. If you want to set up a business in Argentina that involves exportation and importation activities to Latin America and the rest of the world, an FTZ could be a good option. One important benefit for foreign companies is that they receive the same treatment as in the rest of Argentina in these FTZs. International trade is growing in Argentina as a result of decreased restrictions on foreign investment combined with the implementation of free trade zones. Now is a great time to export to Argentina.
Free Trade Zones in Argentina are export processing areas that offer various benefits to the companies that operate businesses in these areas. These benefits include no customs duties and no value-added tax (IVA in Argentina) on goods imported into the FTZ. As a corporation operating in an Argentinian FTZ you will still be liable for corporation tax at the standard rate of 35%.
Argentine legislation defines an FTZ as an area outside the “General Customs Area” (GCA) of Argentina. In these areas, neither the inflows nor outflows of exported final goods are subject to tariffs, non-tariff barriers, or other taxes on goods. Products from within a FTZ cannot be shipped to the GCA unless they are capital goods that are not produced in the rest of the country.
The labor, sanitary, ecological, safety, criminal, and financial regulations within FTZs are the same in the GCA.
Free Trade Zones In Argentina
The three most popular Free Trade Zones in Argentina are:
La Plata Free Trade Zone (ZFLP)
Inaugurated in 1997 in Buenos Aires, the ZFLP is the most important FTZ in Argentina due to its proximity to the capital and the Ezeiza International Airport. ZFLP has a port with 500 meters of dock and is a logistical hub for the movement of cargo inside and outside Argentina. There is a good selection of warehousing, storage, showroom, and office space in ZFLP. The main industries that operate in ZFLP deal with tools and machinery, automotive, textiles, electronics and toys.
Tierra del Fuego
The Tierra del Fuego special customs area is located on an island in the south of the country, ideal for shipping from the Atlantic Ocean to the rest of the world.
General Pico La Pampa (FTZGP)
Located in the middle of Argentina, this FTZ is operated by Aeropuertos Argentina 2000 and is designed to improve logistical operations including the use of General Pico Airport.
It takes 12 weeks to set up a company in any of these three Argentinian trade zones, and 8 weeks to set up a corporate bank account.
Our team at Argentina Biz Services, part of the Biz Latin Hub group can provide you with further advice about the features and benefits of international trade with Argentina. If you are considering setting up your business or forming a company in Argentina, don’t hesitate to get in contact with Craig here.