FDI in figures

From 1993, the Island progressively but selectively opened up to foreign investments (Law no^o 77 on the IDE in 1995, and the 5290 agreement on the production cooperation of goods and services contracts).  According to the Cuban government, the country has up to date (April 2008), received nearly 6 billion dollars whereas according to CNUCED,  the Island is placed amongst the last countries in the world in terms of receiving IDE.  Despite the fact that all the sectors are open to IDE, the government defined in 2007 the strategic economic sectors which should be prioritized for investment.  In practise, this means that the government favors investments that bring advanced technology to infrastructures such as the tourism industry, mining, petrol and any activities that can contribute towards developing a supply of goods for local consumption (retail distribution, restaurants are thus very difficult for foreigners to access).

Why you should choose to invest in Cuba

Strong points

The law regarding direct investments by foreigners is relatively flexible and in theory allows investment in all sectors. However, the government facilitates more investments that can bring advanced technology, market openings or capital which Cuba cannot bring in alone (like in the tourism industry, mining industry and industry development sectors which would allow them to have the freedom of subtitutes to imported goods).

Weak points

In a lot of cases, foreign companies are forced to consider the Cuban State as a business partner because of the fact that the Cuban economy remains very centralized.

Government measures to motivate or restrict FDI

Free industrial trade zones have been set up so as to attract foreign investors (for example: Havana in Bond, the Wajav zone or the port zone of Mariel).  They are free of income tax on profits as well as the taxation on labor, exempt of customs duty and any duties linked to goods brought into the free zone.  The tax exemption is valid for 12 years, then the company only pays 50% of taxes for the following 5 years.  For commercial activities and services, the exemption period extends to a period of 5 years.

Procedures relative to foreign investment

Freedom of establishment

No

Acquisition of holdings

In Cuba, majority shareholding in a local company is allowed .

Obligation to declare

The country's World Association of Investment Promotion Agency enables one to be able to inform himself on the necessary authorisations required to set up.

Competent organization for the declaration

Ministry of Foreign Investment and Economic Co-operation, the MINVEC (Minsterio para la inversion extranjera y colaboracion economica). (Spanish only)

Requests for specific authorizations

No

Finding assistance for further information

Investment aid agency

Evaluation and Project Investment management leadership ( DEGPI)

Other useful resources

Law no. 77 on foreign investment (Spanish only)
Website on foreign investment registration (Spanish only)