Doing Business in Argentina

Expats doing business in Argentina will quickly learn that this South American country values personal relationships and seniority. It also identifies more with its European roots than with the Latin American influence in the country. Argentina’s economy hasn’t been the most stable historically, but it’s still one of the largest economies in South America. Its primary industries are in services and manufacturing, agriculture, information and communication technology (ICT) and tourism.

Nobel Prize-winning economist Simon Kuznets once famously said: ‘There are four kinds of countries in the world: developed countries, undeveloped countries, Japan, and Argentina’ – a quote that captures the economic paradox of a country that was once among the world’s wealthiest. After facing recession in recent years, the economy is projected to stabilise and grow.

President Javier Milei’s radical ‘chainsaw’ austerity measures have focused on slashing public spending, deregulation, and reducing government subsidies – policies that may have stabilised inflation but created significant disruption for businesses and consumers. The human cost has been substantial. Poverty has jumped to over 50 percent, unemployment is rising, and the middle class is shrinking rapidly.

Some economists predict that if Argentina can weather this painful transition, it may emerge as a more competitive, investment-friendly economy – although likely a much more unequal one. For businesses, this creates both opportunities in an increasingly deregulated market and challenges associated with an increasingly polarised society.

Fast facts

Business hours

Traditionally 8.30am to 8pm, with a three to four-hour siesta in the middle of the day. In major cities like Buenos Aires, business hours are moving to more standard 8.30am to 6pm schedules as siestas decline.

Business language

Spanish is Argentina’s official language, but there are some differences between the Spanish spoken in Argentina and in Spain. Businesspeople in Argentina can almost always speak English, more so in large cities like Buenos Aires than in outlying areas. Business cards should be Spanish on one side and English on the other.

Dress

Argentinian dress code varies depending on the type of business meeting and industry. Business attire is usually formal and conservative: Men should wear dark business suits with ties, and women should wear business suits or dresses.

Gifts

Gift-giving in Argentina is not as common as in other cultures. If given, a gift should be something that is both high quality and cannot be misconstrued as a bribe. Gifts are opened immediately when they are received.

Greetings

A simple handshake with eye contact is the preferred business greeting in Argentina. The oldest or most senior associate should be greeted first. Keep in mind that Argentines typically keep close physical contact when speaking to someone.

Address people using their titles and surnames rather than first names, particularly in more formal settings.

Gender equality

Women have equal rights in Argentina, but there are generally more men in senior roles than women, with only about 28 percent of top management positions held by women. Argentina also has a significant pay gap between men and women.

The machismo culture also impacts the way women are treated in business. Women are sometimes subjected to supposedly harmless everyday sexism in the workplace.

Business culture in Argentina

Argentinians are generally family-oriented people, which translates into the way they conduct business. Close, personal relationships are valued, respect is given to older associates, and more loyalty is shown to individual people than to companies as a whole.

It is common to hold business dinners in restaurants. Meals are for socialising, and you should avoid talking business unless your Argentinian colleague brings it up. Usually, the person who sets the invitation pays the bill.

Relationships

Expats need to network and build meaningful relationships to get ahead in the Argentinian business world. It is common for business meetings to begin with small talk and for relationships to be nurtured over time. Interestingly, nepotism and name-dropping are not frowned upon. Even though it might feel strange initially, you should understand that these tools can be used to your advantage.

Communication

Argentines are quite expressive and emotive in their communication, using gestures, tone of voice and body language extensively to convey meaning. They express themselves forcefully and speak freely, yet when handling disagreements or sensitive topics, they communicate indirectly and tactfully. Argentines are known to ask questions that some may consider personal, and they may be disappointed if not asked these kinds of questions as well.

Interrupting others while conversing is also common, and is viewed as a demonstration of interest in the conversation. If there are multiple people in a conversation, Argentines may speak louder to be heard. Raised voices are the norm and do not necessarily indicate agitation.

This expressiveness means Argentines use many gestures to bring their point across. Personal space is virtually non-existent, and touching another person’s arm or back is a common and widely accepted practice. Maintaining eye contact while talking to someone is believed to show a sense of honesty and interest in the person who is speaking.

Business hierarchy

Argentinian society, in general, is rather status-conscious, and local business structures tend to be hierarchical. Decisions are made at the top level of the company. This makes business move slowly because decisions often require several layers of approval. You should show respect to those in positions of authority.

Argentinian companies can be described as having ‘relationship-driven hierarchies’. It is important to develop close, personal relationships before starting to do business with Argentines. Engaging in courtesy discussions and going for lunch or dinner with a business partner are great ways to socialise and build a strong relationship.

Business meetings

When arranging a business meeting in Argentina, it is necessary to make an appointment one or two weeks before the intended meeting. The meeting should be confirmed a few days before the date. Appointments should be made by email or telephone, but meetings should always be face-to-face, as telephonic meetings or written communication are seen as overly impersonal.

Argentines are generally punctual when it comes to business engagements, and you should always be on time for meetings. Punctuality shows respect for the other person’s time. That said, meetings are often started with some small talk to break the ice, and it’s not uncommon for first meetings to focus solely on getting acquainted.

Jumping right into discussing business may seem impolite. Conversations are frequently punctuated with laughter and off-topic interruptions, so they may not end on time. It’s best to be patient because displaying a sense of urgency may be viewed with mistrust or rudeness. It’s also a good idea to have any documents available in both English and Spanish.

Local Culture in Argentina

Dos and don’ts of doing business in Argentina

• Don’t use one finger to point, but instead use the whole hand
• Do make an effort to learn Spanish; it will go a long way with Argentine co-workers
• Don’t raise topics relating to Argentina’s past and present political issues
• Do arrive on time for meetings
• Don’t be in a rush; building relationships and doing business in Argentina are one and the same
• Do use titles, and use Señor or Señora to address colleagues if their exact title is not known
• Do show respect to those in positions of authority
• Don’t be afraid to socialise with colleagues; it is common for business associates to be friends outside the workplace
• Do inquire into the well-being of a colleague’s family, spouse or children
• Don’t be too informal; be very friendly and even more polite