Emily Darby
Having won over 40% of votes, President Javier Milei's landslide triumph in Sunday’s mid-term election is "very positive news for investors" that reinforces a "renewed sense of confidence" in the government's ability to transform the economy through structural reform, say partners at Argentine Elite firms – who foresee a boom in M&A, labour and tax work.
On 26 October, Milei’s La Libertad Avanza secured support from 40.8% of Argentina’s voting population, surpassing Peronist opposition party Fuerza Patria and its leader Germán Martínez, who obtained 31.7% of the vote. Milei’s party took 13 of 24 Senate seats that were up for grabs, meanwhile the ruling party achieved its objective of gaining a third of the lower house by securing 64 of the 127 total seats that were contested.
The surprise landslide in Milei’s favour initially drew a mixed response on the global stage, with US President Donald Trump’s pledge to hand over US$40 billion if Milei won having raised questions over foreign interference in local democratic processes.
Nonetheless, partners of leading Argentine firms tell Latin Lawyer that the election outcome spells good news for investors, with the recent results giving Milei the backing needed to forge ahead with economic reforms that are set to carve out a more market-friendly and financially stable investment landscape.
Argentina enters “new phase of stabilisation”
(...)
Having made fruitful attempts to slash local inflation during his first year in office – reducing the eye-watering rate of 211% that was recorded in 2023 to 43.5% mid-way through 2025 – the election results appear to reflect certain optimism that Milei can continue to reverse years of economic strife in Argentina through aggressive yet seemingly effective measures. Elected in December 2023, Milei also managed to significantly reduce the fiscal deficit and achieve a surplus for the first time in decades last year, boosting investor optimism substantially.
“For investors, this outcome signals continuity, predictability and a renewed sense of confidence,” agrees Diego Serrano Redonnet, a banking partner at Pérez Alati, Grondona, Benites & Arntsen (PAGBAM). “The strengthened political position will allow Milei to accelerate his programme of fiscal discipline, deregulation and legal modernisation, transforming Argentina into a more open and competitive economy.”
By increasing his presence in Congress, Milei’s electoral win has also locked in future potential foreign investment through the government’s Incentive Regime for Large Investments (RIGI). First introduced last year, the scheme offers incentives for companies looking to invest at least US$200 million into one of Argentina’s main industries. Among the benefits, investors will pay 25% corporate income tax for 30 years, instead of the current standard of 35%, and are exempt from any new taxes created during that period.
With the continuation of these benefits, Argentina is likely to continue benefiting from an influx of investment from foreign players, partners agree.
“Argentina has entered a new phase of stabilisation. Its pro-market stance and deregulation agenda are expected to attract inflows of foreign direct investment. Companies will also benefit from clearer rules for large investment projects under the RIGI regime, which guarantees legal and tax stability for up to 30 years,” summarises Serrano.
Long-awaited tax and labour reforms loom
While Milei’s stronghold in Congress is good news for investment and transactional deal-making, the mid-term election outcome will also prove crucial to implementing the government’s proposed tax and labour reforms, which are set to substantially fortify Argentina’s regulatory landscape and boost private-sector investment.
(...)
Firms must gear up for deal-making surge
With green shoots growing in Argentina following the mid-term election results, and with a string of reforms now on the way, firms are likely to respond by bolstering their transactional departments and sharpening their specialised knowledge, partners predict.
“The combination of economic stabilisation, institutional reform and renewed access to international financing is set to transform Argentina’s legal market,” summarises Serrano. “Law firms are already experiencing a surge in transactional and advisory mandates, and this trend is expected to intensify as reforms progress,” he adds.
(...)
As RIGI continues to bring in foreign investment, lawyers should be prepared too to see an uptick in multilateral funding, and firms will “play a central role in structuring and negotiating complex financings,” remarks Serrano.
(...)
The consensus in the local legal sector appears to be this: Argentina is on track for a much more favourable economic climate following the mid-term results, bringing stability and subsequent investment confidence to its shores. Resultingly, it seems that Argentine firms will have a busy 2026, particularly in the country’s lucrative mining, energy and infrastructure sectors.
Serrano summarises that: “As Argentina’s business environment stabilises and its legal framework aligns with international standards, local firms will likely respond by scaling up, deepening specialisation and forming strategic alliances to handle growing cross-border deal flow. The overall effect will be a more competitive and sophisticated legal sector, well positioned to support Argentina’s reintegration into global markets.”
(...)
Article published in:
