Approval of RIGI and RIMI Projects
The Legislature of the City of Buenos Aires has greenlit two significant initiatives, the RIGI (Incentive Regime for Large Investments) and the RIMI (Incentive Regime for Medium Investments), aimed at boosting investments and revitalizing the city’s economy. The measures were proposed by the political group Freedom Advances and were passed after a heated debate.
Legislative Support
During the second ordinary session held in the Legislature’s building, the proposals garnered backing from the ruling bloc Let’s go for more and Trust and Development, led by former Mayor Horacio Rodríguez Larreta. The initiatives passed with a 32-27 vote, with opposition from groups including Force for Buenos Aires, the Radical Civic Union (UCR), and the Left and Workers Front (FIT).
Key Features of RIGI and RIMI
RIGI Highlights
The RIGI is designed to attract large national and foreign investments aimed at fostering economic development. As emphasized by Pilar Ramírez, president of the LLA bloc, this initiative creates an environment of predictability and legal stability crucial for long-term investments. RIGI targets specific sectors such as:
- AI
- Data Centers
- Telecommunications
- Premium Tourism
- Urban Infrastructure
The project could position Buenos Aires as a hub for technological and financial services even for large projects located in other provinces, due to its demand for specialized services.
Tax Benefits Under RIGI
The regime offers several tax incentives for projects situated within the city, including:
- Exemption from Gross Income tax on profits
- Exemption from Stamp duties on contracts
- Exemption from Sustainable Construction Rights
RIMI Overview
Alongside RIGI, the RIMI was also established to support medium-sized investments in Buenos Aires. Its objective is to encourage private investments that create jobs and stimulate economic activity. This initiative significantly lowers the access threshold for microenterprises to USD 100,000, allowing various types of investments to be combined.
Tax Incentives for RIMI
The RIMI provides the following benefits:
- Exemption from Stamp duties
- Exemption from Real Estate/ABL taxes linked to the investment
- A 25% payment on account of Gross Income based on the investment
This framework specifically excludes speculative financial activities, ensuring that profits are directed towards productive investments.
The Role of City Bank
The City Bank is integrated into this initiative as a financial partner, providing lines of credit specifically for approved investment projects. Additionally, RIMI mandates a minimum stay of four years in the city, along with local registration and ongoing monitoring to assess the impact of these investments.
Conclusion
The approval of RIGI and RIMI marks an important step in stimulating economic growth in Buenos Aires. “The City does not have deposits, but it does have talent, services, and tourism that must be promoted,” stated Ramírez after the debate. By creating a conducive environment for both large and medium investors, these initiatives aim to foster economic resilience in Buenos Aires, enhancing its role as a competitive player in the global market.