Cuba’s new foreign investment policy is one of the most far-reaching actions taken within the framework of the updating process the island’s economic model is going through

What is the legal framework for foreign investments in Cuba?
- Act 118 on Foreign Investment
- Decree Law 313 on the “Mariel Special Development Zone”
- Complementary regulations

Why to invest in Cuba?
As a recipient of foreign investment, Cuba stands out for its favorable business environment, construed within a safe and clear legal framework, seaport infrastructure, roads and communications that encourage the investment process, institutions that employ highly-trained personnel in assisting investors, as well as political, juridical and social stability, safety and security, and a superb geographical location, among other factors.

What are the general principles for foreign investment in Cuba?
- It targets export and import-replacing sectors, favoring streamlining, creation of infrastructure and technological pattern change.
- It is promoted on the basis of a vast and diversified portfolio of projects.
- It encourages the advance of comprehensive projects that can generate production chains.
- Cuba remains as the major shareholder in businesses linked to the exploitation of natural resources, public services, biotechnological development, wholesale commerce and tourism.
- It encourages 100 percent of foreign capital investment in complex assets and developments linked to industrial infrastructure.
- It encourages investments in renewable energies that can help revamp the country’s energy-generation system.

What juridical forms are entitled for foreign investment?
- Joint ventures (shared capital).
- Companies operating with full foreign capital.
- International Economic Partnership Contracts, including agreements for productive and service management.

What are the fiscal allures Cuba can offer to foreign investors?
- On profits: 0% during the first 8 years and exceptionally for a longer period of time. Later on, a 15% discount applies. 0% on profit reinvestment that could reach 50% off on the exploitation of natural resources.
- On workforce: exempted.
- On local development contribution: 0% during the investment recovery process.
- On sales or services: 0% during the first year of operations, followed by a 50% exemption on the tax contained in the Tax Act.
- On personal revenues: exempted.
- On the use or exploitation of natural resources and environmental protection: 50% exemption during the investment process.
- On customs and investment equipment: exempted during the investment process.

What steps should I take to invest in Cuba?
1. Identification of the project of interest and a Cuban partner.
2. Negotiation of the project between the parties.
3. Presentation of the project before the Ministry of Foreign Trade and Investment (MINCEX).
4. Presentation by MINREX of the approval issued by the Council of State or the Council of Ministers and the Ministry of Tourism (MINTUR), depending on the sector, modality and characteristics of the investment.
5. Once the investment is approved, notarial public documents will be handed over within 30 days, and the business is logged in the commercial registry.

Cuba offers a portfolio of opportunities made up of 246 projects that amount to USD$8.7 billion, subject to yearly updates.
Projects embrace the following sectors: agriculture, forestry and food, sugar industry, tourism, power generation, mining, transportation, pharmaceuticals and biotechnology, healthcare, building and commerce.