With the luxury tax eliminated, investments in Argentina grow thanks to Milei

The elimination of the luxury tax promoted by the government of Javier Milei not only began to be reflected in a sharp drop in prices in the automotive market, but now it is also beginning to show a second effect: the arrival of international investments. In particular, the high-value goods segment is beginning to reactivate after years of tax distortions

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In recent weeks, Argentina has become a key destination for executives of major Swiss watch brands. The opening of boutiques, expansion announcements and meetings with national authorities marked an agenda that confirms the change in perception of the local market

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The new scenario has a central factor: the elimination of the domestic tax on luxury goods, which for years applied a 20% burden on high-value products. This tax not only made luxury watches more expensive, but it had also generated a loss of competitiveness compared to squares such as Miami or São Paulo

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Added to this is the expectation for the free trade agreement between Mercosur and EFTA, the block that makes up Switzerland. If its ratification progresses, it would reduce tariffs that today range from 10% to 20%, further reinforcing the attractiveness of the

Argentine market.

In this context, several brands began to move chips. Audemars Piguet opened its first boutique in the country, located in Puerto Madero, with a service model aimed at high-level customers. The opening is part of a regional strategy that also includes new stores in Chile and Mexico

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For its part, Breitling confirmed its return to Argentina with the opening of a new boutique. The brand, which had closed its local presence years ago, is now once again betting on the country, in line with a more predictable economic environment and clearer rules of the game

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The phenomenon also affects more exclusive brands such as Laurent Ferrier, which produces just 600 watches a year and targets an audience of collectors. With prices exceeding US $200,000, this type of brand reinforces the idea of Buenos Aires as a strategic hub within the luxury segment in Latin

America.

Even within the affordable luxury segment, companies such as Victorinox Swiss Army project sustained growth in the country, driven by the new economic context. The sector anticipates increases in turnover and new launches adapted to

the local market.

The objective of these companies is not massive volume, but rather to consolidate their presence in a market that is once again competitive. After years of restrictions and tax pressure, Argentina is beginning to regain ground as a destination for high-level investments

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