A US company can hire an engineer in Argentina in three ways: as an independent contractor who invoices the company, as an employee of an employer of record (EOR) that runs Argentine payroll on the company's behalf, or as an employee of the company's own Argentine entity. None of the three requires the US company to move anyone to Argentina. The contractor route is the most common for software engineers and works without any local setup, an EOR is the route for a full-time employee without an entity, and an entity makes sense for a stable team.
What hiring in Argentina means for a US company
Hiring in Argentina means engaging a person who lives and works in Argentina, either under a service agreement or under an employment contract governed by Argentina's Labor Contract Law (Ley 20.744). Which of the two applies depends on how the relationship works in practice, not on what the contract calls it.
An employer of record is a company that legally employs a worker in a country on behalf of another company. The EOR signs the Argentine employment contract, runs payroll, pays social security contributions and keeps the records, while the US company directs the engineer's day-to-day work.
A contractor, by contrast, is an independent professional who provides services without being in a dependent employment relationship. In Argentina, a software engineer working as a contractor usually invoices the US company as a monotributista: the simplified regime of ARCA, Argentina's tax agency, which combines VAT and income tax with pension contributions and health cover in a single payment.
Contractor vs EOR vs own entity in Argentina: comparison (2026)
The three routes differ in who employs the engineer, how fast a US company can start and how much of the Argentine setup it carries itself. The table compares them on the same attributes.
| Attribute | Contractor | Employer of record (EOR) | Own Argentine entity |
|---|---|---|---|
| Who engages the engineer | The US company, under a service agreement | The EOR, under an Argentine employment contract | The company's Argentine subsidiary |
| Local setup needed | None: the engineer registers with ARCA | None: the EOR is already registered | Incorporating and registering a company |
| Cost on top of the engineer's pay | None from the company; the engineer pays their own monotributo | EOR fee plus employer contributions, 13th-month pay and leave | Employer contributions, 13th-month pay, leave, plus local accounting and legal |
| Day-to-day control | Agreed deliverables; the engineer sets hours and tools | Full direction, as with any employee | Full direction, as with any employee |
| Ending the relationship | Under the terms of the service agreement | Notice and severance under the Labor Contract Law | Notice and severance under the Labor Contract Law |
| When it fits | Independent engineers on a defined scope | One or a few full-time employees | A stable team that justifies a local company |
Across Latin America, according to Kulturo, most US companies hire engineers as contractors on a fixed monthly fee in US dollars, with an EOR or a local entity as the alternatives.
How to hire an engineer in Argentina as a contractor
Hiring an engineer in Argentina as a contractor is legal and common: the US company signs a service agreement with the engineer, the engineer invoices the company each month and the company pays against each invoice. The company does not need an Argentine entity or tax registration.
- Agree the scope in writing. Describe the services and deliverables the engineer will provide, for example building and maintaining a set of Go services, rather than a job description with fixed hours.
- Agree the fee and currency. Most contracts set a fixed monthly fee in US dollars, payable against an invoice.
- Check the engineer's tax registration. The engineer registers their activity with ARCA, most often as a monotributista, before the first invoice.
- Receive an export invoice each month. The engineer issues a type "E" export invoice for services provided to a client abroad.
- Pay through the banking system. Paying by bank transfer against each invoice leaves the record that Argentine law takes into account.
How an Argentine contractor invoices a US company
An Argentine contractor invoices a US company with a type "E" invoice, the export invoice. According to ARCA, export operations must be supported by a type "E" invoice, which can be issued in foreign currency or in pesos, through ARCA's online invoicing service with a point of sale enabled for export invoices.
ARCA defines a service export as a service provided in Argentina, without a dependent employment relationship, whose economic use takes place abroad. A senior engineer building software for a US product team fits that definition. ARCA also states that monotributistas can export services as long as they stay within the invoicing limits of the top category for their activity, so an engineer on a high monthly fee should confirm their registration with an Argentine accountant.
How to keep a contractor relationship independent in Argentina
A contractor relationship in Argentina stays independent when the engineer controls how and when the work is done and is paid against invoices. Article 23 of the Labor Contract Law presumes an employment contract when someone provides services in a situation of dependency.
Since March 6, 2026, when Ley 27.802 replaced article 23, that presumption does not apply to contracts for works or professional services without a dependent relationship when the corresponding invoices are issued or payment is made through the banking system. The amended article extends that exclusion to all purposes, social security included.
The invoices do not replace the substance of the relationship. Keep a contractor independent in practice:
- Contractor schedule: let the engineer set their own hours, with overlap for meetings agreed as part of the service.
- Contractor tools: let the engineer use their own equipment and decide how to deliver the work.
- Contractor deliverables: manage by outcomes and milestones, not by attendance or timesheets.
- Contractor benefits: do not offer employee benefits such as paid leave or an employee handbook; if the company wants them, the EOR route below is the right one.
How to hire an employee in Argentina through an employer of record
An employer of record lets a US company hire a full-time employee in Argentina without opening an entity. The EOR employs the engineer under the Labor Contract Law, registers them with Argentine social security, runs payroll and files the contributions, and the US company pays the EOR a monthly invoice that covers salary, employer costs and the EOR's fee.
The EOR route fits when the company wants the engineer as an employee, with paid leave, full direction of their work and the protections of Argentine law, but hires too few people in Argentina to justify a subsidiary. The engineer becomes an employee from the first day, with a probation period of the first six months of an open-ended contract under article 92 bis of the Labor Contract Law.
Employer social security contributions in Argentina are calculated on payroll and set by law, and the EOR declares and pays them every month. Ask each EOR for a written monthly cost for your engineer's salary, broken down into salary, employer contributions, 13th-month pay and the EOR's fee, before signing.
What an employee in Argentina is entitled to under the Labor Contract Law
An employee in Argentina, whether hired through an EOR or through the company's own entity, is entitled to fixed, predictable terms under the Labor Contract Law (Ley 20.744). A US company can budget for each of them before making the offer.
| Term | What the Labor Contract Law sets | Article |
|---|---|---|
| Probation period | The first 6 months of an open-ended contract; collective agreements can extend it to 8 months in companies of 6 to 100 workers, or 1 year in companies of up to 5 | 92 bis |
| 13th-month pay (aguinaldo) | One twelfth of the year's pay, paid in two instalments, due June 30 and December 18, each calculated as 50% of the highest monthly pay in that half-year | 121 and 122 |
| Paid annual leave | 14 calendar days with up to 5 years of service, rising to 21 days with more than 5 years and up to 10 | 150 |
| Notice from the employer | 1 month with up to 5 years of service, 2 months with more | 231 |
| Notice from the employee | 15 days | 231 |
| Severance without cause | 1 month's pay per year of service or fraction over 3 months, after the probation period, with a minimum of 1 month's pay | 245 |
Severance in Argentina follows a formula an employer can calculate in advance. Article 245, replaced by Ley 27.802 in March 2026, bases it on the best normal, habitual monthly pay of the last year and excludes non-monthly items such as the 13th-month pay and vacation. The base is capped at three times the average monthly pay of the applicable collective agreement, and the cap can never reduce the base below 67% of the employee's own monthly pay.
When to open your own entity in Argentina
Opening an Argentine entity makes sense when a US company plans a stable team in Argentina for the long term, wants to employ people directly and is ready to run local accounting, payroll and legal compliance itself. The entity becomes the employer, with the same Labor Contract Law terms as under an EOR.
A US company can start with contractors or an EOR and set up an entity later, when headcount and permanence justify the fixed cost of a local company. An Argentine lawyer and accountant should advise on the type of company, the registration with ARCA and how to move existing employees from an EOR to the entity.
How Kulturo helps US companies hire engineers in Argentina
Kulturo is a tech recruitment agency founded in Barcelona whose Argentine cofounder, Damián Legasa, now works on the ground in Buenos Aires with a team, and it helps US companies hire engineers in Argentina, Uruguay, Colombia and Chile. Kulturo's own team runs the search, not an external partner.
Kulturo works in two ways. In a direct hire, the company engages the engineer, usually as a contractor, and Kulturo charges a one-time success fee when the hire is made; the guide to direct-hire recruiting in Latin America explains the process step by step. In monthly staff augmentation, the engineer works full time inside the company's team and Kulturo handles the contract and payroll. Both are explained on the page on hiring senior LatAm developers with Kulturo.
Kulturo's published targets, which also apply to its searches in Argentina, are a first batch of validated candidates in under 7 days and 30 days from kick-off to signed offer, before the candidate's notice period. Kulturo is not an employer of record and does not advise on Argentine tax or employment law: for an EOR or an entity, the company works with its own provider and local advisers.