Argentina is as a key destination for businesses seeking highly skilled, cost-effective contractors. The global recruitment of freelancers here grew by 54% last year, reflecting Argentina’s rising role as a go-to destination for flexible, high-quality talent.
However, when hiring independent contractors in Argentina companies must be vigilant about misclassification risks, tax rules, and digital invoicing requirements.
This guide outlines the essential steps and explains how an Agent of Record (AOR) — also known as a Contractor of Record(COR) — can prevent these risks and make your processes more efficient and hassle-free.
Step 1: Classify your contractor correctly
When companies hire in Argentina, the risk of misclassification is high. Courts may reclassify contractors as employees based on control, exclusivity, and economic dependence — despite a signed, written contract. Foreign companies must clearly understand whether their new hire will be considered an employee or a contractor as per Argentinian law.
Contractors versus employees in Argentina
Argentine labor law defines an employee as someone who provides services to an employer in exchange for regular wages, with the employer controlling their work performance, hours, and location and providing the necessary tools.
Conversely, an independent contractor offers services under a contractual agreement that doesn’t constitute employment, having the autonomy to set their schedule and use their own equipment.
Factor | Employee | Contractor |
Legal framework | Governed by Ley de Contrato de Trabajo (LCT) No. 20.744 for labor protections and severance. | Governed by civil/commercial contracts, namely Código Civil y Comercial. No labor law protections. |
Work schedule | The employer sets fixed hours, and overtime pay is a must. | The contractor freely manages schedule, and receives no overtime pay. |
Equipment | The employer must provide tools, workspace, and materials. | Uses own tools/equipment |
Exclusivity | Generally exclusive to one employer unless authorized. | Can usually work for multiple clients |
Taxes | Salary possibly subject to income tax, or impuesto a las ganancias. | Contractors pay their own taxes. |
Social security | Employer pays contribuciones patronales which includes pension and healthcare. | They are responsible for own retirement savings. |
Ensure that you define the scope of work and general guidelines within the contract agreement to stay compliant from the very beginning.
How Multiplier can help
Misclassifying employees can result in substantial fines and potential legal disputes. An AOR like Multiplier expertly assesses each role to ensure accurate classification from the start, protecting your business from fines and legal liabilities.
Step 2: Understand labor laws relevant to Argentinian contractors
When hiring contractors in Argentina, it’s important to be aware of the relevant legal frameworks. While Argentina’s primary labor law, Ley de Contrato de Trabajo, or LCT, mainly governs employment relationships, the Civil and Commercial Code also regulates contractual agreements with independent contractors
How Multiplier can help
While contractors aren’t protected by the LCT, misclassifying them can still lead to employee claims. An AOR/COR like Multiplier ensures your contractor engagements comply with local civil law, minimizing misclassification risks. With an AOR, you get legally sound service agreements with the right autonomy and tax responsibility clauses, and smooth contractor onboarding.
Foreign companies should seek the help of local experts when hiring independent contractors in Argentina to ensure compliance and prevent disputes. This can be done by either hiring an in-house team to manage contractors, or by utilizing an AOR, which will navigate these legal complexities for you and ensure complete adherence to rules and regulations.
Step 3: AOR or in-house? Decide how to hire and manage contractors in Argentina
When hiring independent contractors in Argentina, your options depend on your objectives, risk tolerance, and legal structure.
The main options include:
- Hiring via a foreign entity.
- Hiring via a local entity (if you have one).
- Hiring through an AOR/COR (Agent/Contractor of Record).
Converting contractors to employees through an EOR (Employer of Record).
Unless you already have a registered entity in Argentina, using an AOR is generally the most cost-effective and least risky option for international companies looking to engage contractors.
Step 4: Find the right contractor
Argentina has a growing pool of skilled professionals, particularly in the technology sector, with Buenos Aires, Córdoba, Rosario, and Santa Fe being key talent hubs. Top industries for contractor talent include IT (software development, UX/UI design), digital marketing, and creative services.
The popular channels for sourcing include:
- Freelance platforms: Grintek, Workana, Fiverr, Freelancer.com
- Remote job boards: Bumeran, Zonajobs, Toptal, and LinkedIn
- Referrals: Networking and personal referrals are significant in Argentina’s business culture due to their emphasis on trust.
But before you put up the listing on these platforms, understanding the typical contractor rates in Argentina is crucial for fair compensation and cost management.
What does it cost to hire a contractor in Argentina?
Contractor costs in Argentina vary based on the role, experience level, and project complexity. Here are estimated annual salary ranges based on recent data as of May 2025:
Role | Average annual salary |
Software Dev | $24,000 to $338,400 |
UX/UI Designer | $39,706 to $61,765 |
Marketer | $17,647 to $70,589 |
This data was compiled in May 2025 from established job boards, such as Glassdoor, Ruby on Remote, UIUX Jobs Board, and separately from the Multiplier contractor database. These are average range estimates, and actual rates may vary.
How Multiplier can help
An AOR like Multiplier helps you avoid administrative costs, legal consultation fees, misclassification penalties, and payment delays when onboarding or paying contractors in Argentina. You benefit from transparent pricing, compliant contracts, and simplified management.
Step 5: Draft a compliant service agreement
While Argentine labor law doesn’t mandate written contracts for permanent employees in all cases, a written service agreement is highly recommended for independent contractors. It provides clarity and legal protection for both parties.
Your service agreement should include:
- Scope of services
- Payment terms
- Contract duration and termination/extension clauses
- Autonomy clauses (to reinforce contractor status)
- Non-Disclosure Agreements (NDAs), if needed
- A clause outlining the contractor’s responsibility for their tax obligations and invoicing.
How Multiplier can help
A well-drafted service agreement is your first line of defense against misclassification. Multiplier helps you draft compliant, bilingual agreements that align with Argentine civil code standards, clarifying scope of work, autonomy and deliverables.
Each contract is structured to cover termination, renewals, and intellectual property—so so both you and your contractor are protected, expectations are clear, and the working relationship starts on the right foot.
Step 6: Setup systems to pay contractors compliantly
When paying contractors in Argentina, ensure you align with local tax regulations and payment practices. Plan for compliant tax management, payment and invoice management.
Payment methods
- Paying in Argentine Pesos (ARS) is generally preferred for local contractors.
- Utilize reliable and traceable methods like bank transfers or international payment platforms.
Contractors taxes in Argentina
Before diving into tax rates, it’s important to know that Argentine contractors typically fall under one of two tax models: Monotributista or Autónomo.
The right model depends on the contractor’s income level, type of work, and whether they qualify for the simplified regime. If you’re not sure which category your contractor falls under, just ask — most will know how they’re registered, and it will affect how they invoice you.
Here’s a breakdown:
Tax type | Rule | Responsibility |
Income tax (Ganancias) | Monotributo: Do not pay separate income tax (included in monthly fee). Autónomos: Pay progressive income tax (5% to 35%) based on annual net income. | | Contractor files annually (Autónomos) or pays monthly (Monotributo). |
VAT (IVA) | 21% standard rate 10.5% for certain services like IT or education. | Contractor |
Social security | Monotributo pays a monthly fee that includes social security. Autónomos must pay pension and healthcare contributions separately. | This must be managed by the contractor. |
Invoicing | Digital invoice (Factura Electrónica) are mandatory. | Contractor must issue compliant invoices through Argentina’s tax authority (AFIP). |
Contractor Invoicing
All independent contractors in Argentina — whether registered as Monotributistas or Autónomos — are required to issue invoices (facturas) for the services they provide. These invoices must include their tax identification number (CUIT).
Argentina’s electronic invoicing system (Factura Electrónica), regulated by AFIP (Administración Federal de Ingresos Públicos), is mandatory for nearly all contractors.
Multiplier can help
Paying contractors in Argentina means handling local currency, navigating AFIP’s digital invoicing system, and understanding whether your contractor charges VAT or not.
Multiplier handles all of this for you.
- We automate contractor payments in ARS or USD, while ensuring exchange rates and cross-border transfers are handled correctly.
- We collect and validate AFIP-compliant electronic invoices for every payment, so you’re always audit-ready.
Handle VAT correctly depending on whether your contractor is a Monotributista or Autónomo.
Step 7: Onboard contractors
A positive onboarding experience is crucial for building a strong working relationship with your Argentinian contractors. Argentina Time (ART) is the standard time zone.
Your onboarding processes should include introductions to your team, communication tools and schedules, project milestones, and expectations regarding performance and feedback.
Time zone overlap: A key factor when onboarding Argentina freelancers
- Argentina operates on Argentina Time (ART), which is UTC-3 year-round.
- Offers good overlap with US Eastern Time (EST), especially during daylight saving time in the US.
Ensure that you establish clear communication guidelines and availability expectations to set the stage for a productive collaboration.
Step 8: Keep records and stay audit-ready
In Argentina, it’s generally required to maintain tax records and legal documentation for a minimum of five years. This includes signed service agreements, invoices, and payment confirmations. Adhering to Argentina’s Personal Data Protection Act (PDPA) regarding the handling of contractor information is also essential.
Another area to be mindful of is permanent establishment risks. If your contractor arrangement begins resembling a local operation—especially if you exercise significant control or generate revenue from within Argentina—tax authorities may consider your business to have a taxable presence in the country, triggering corporate tax obligations and increased scrutiny.
How Multiplier can help
Keeping track of multiple compliance areas including taxes, data protection, and labor laws can be quite taxing for your HR teams.
Multiplier securely manages all documentation in one place, automates payments and allows easy access to records, ensuring compliance across your contractor workforce.
Hiring contractors in Argentina: Compliance checklist
- Sign a clear service agreement which outlines
- Scope
- Autonomy
- Tax responsibilities
- Termination terms
- Collect necessary legal and tax documents, including the contractor’s CUIT.
- Set up compliant payments in ARS via traceable methods.
- Ensure contractors issue valid invoices.
- Prevent permanent establishment risks
- Maintain records such as contracts, invoices, proof of payment for at least five years.
Working effectively with your Argentina-based contractors requires continuous compliance, timely payments, and careful record-keeping. Managing this in-house can be challenging, especially as you scale. That’s why global businesses of all sizes rely on Multiplier’s AOR to handle these complexities.
Confidently hire and pay contractors in Argentina with Multiplier
Whether you’re hiring your first contractor or expanding your team in Argentina, Multiplier helps you:
- Quickly generate service agreements that comply with Argentina’s civil code and prevent misclassification risks.
- Pay contractors compliantly in ARS or USD and validate AFIP-compliant electronic invoices.
- Understand your contractor’s tax status (Monotributista vs. Autónomo) and manage VAT obligations correctly.
- Effortlessly manage invoices, payments, reimbursements, and time-tracking on a unified, easy-to-use contractor management platform.
Multiplier’s Contractor of Record solution streamlines the process, making it faster, safer, and more efficient. Book a demo to learn more.
