Argentina occupies the ninth position in the list of the 10 most challenging countries for conducting business, hindered by the regulatory and tax obstacles that foreign firms encounter while operating within its borders, as reported by TMF Group’s global index. Nonetheless, the report identified potential for a reversal in the medium term, supported by enhanced incentives for foreign investment, the government’s commitment to achieving a balanced budget, and the enactment of labor reform. The ninth-place ranking represents a regression from 2025, when Argentina secured the 11th position. It occurs alongside President Javier Milei’s vigorous advocacy for deregulation, incentives for foreign investment, and the reduction of bureaucratic obstacles. The rationale lies in the fact that, in addition to each nation’s macroeconomic attractiveness, the index assesses the operational expenses associated with adhering to regulatory structures that “impede the expansion of both domestic enterprises and foreign investors.”
According to TMF Group, this highlights the ongoing existence of structural barriers that international companies encounter while conducting operations within the country. TMF Group has identified a significant issue in Argentina regarding the limited digitalization of operating processes. This situation frequently results in legacy requirements, such as in-person filings and manual certifications, being layered on top of more contemporary demands. The jurisdictions identified as the most conducive to business operations — Denmark, Hong Kong, and the Netherlands — are distinguished by robust digital infrastructure and a stable regulatory framework, according to the report. Ongoing legal updates compel companies to repeatedly reassess their local processes, “which raises operating risk and reinforces the need for specialized local expertise.” The report stated “The business environment remains demanding, characterized by unpredictable regulatory changes and an anticipated increase in administrative burdens over the coming year.”
Notwithstanding the decline in the rankings, a majority of analysts express optimism regarding the reforms being implemented by Milei. Jorge Sodano, TMF Group’s country head for Argentina, Chile, Paraguay and Uruguay, remarked: “Argentina’s position in this ranking comes at a turning point.” The reforms being advocated by the Argentine government regarding deregulation, currency liberalization, and administrative simplification “are laying the groundwork for a much more predictable and competitive business environment,” he stated. For Sodano, timing is of paramount importance. “Argentina today represents a prime entry point before the improvement in the investment climate fully shows up in the rankings,” he stated.
Marcelo Abad informed that in 2026 “there is a marked improvement in macroeconomic expectations and in pro-market sentiment compared with previous years.” He highlighted “the slowdown in inflation and the drop in country risk, which facilitate capital inflow and project planning.” Nonetheless, he recognized that “significant weak spots remain, tied to the level of activity, financing and medium-term regulatory uncertainty.” Abad also indicated that the insufficient investment in ports, railways, and highways — a result of the cessation of public-works expenditure — could lead to “a major bottleneck” for the expansion propelled by the nation’s natural resources.