To develop the national economy, Cuba has embarked on an unprecedented process of change in its foreign investment and foreign trade policy.
These transformations, which include greater monetary flexibility and the radical simplification of procedures, as well as authorizing Cubans residing abroad to invest in the private sector and expanding direct foreign trade operations, seek to streamline processes, attract foreign capital, and, above all, generate income, employment, and wealth for the benefit of all parties.
On the television program Mesa Redonda, Carlos Luis Jorge Méndez, First Deputy Minister of Foreign Trade and Foreign Investment (Mincex), acknowledged that foreign investment must cease to be merely a supplement and become a fundamental pillar of the country's economic activity. He emphasized the vital role of Cubans residing abroad in supporting the private sector.
He further clarified that this is not a step backward toward capitalism and that the country will not be sold to the highest bidder, as some have suggested on social media. He also refuted claims that these decisions are a way to buy time in the face of U.S. aggression. These transformations are part of a government program, and their primary objective is to leverage all of the country's assets—both resources and human capital—to generate income, foreign exchange, and development.
To achieve this, the country must create more attractive conditions for foreign investors, which involves both infrastructure development and adapting the legal framework to make it possible.
CHANGES FOR FOREIGN INVESTMENT
In response to this legal adaptation, Decree 153, amending Decree 325, which contains the Regulations of the Foreign Investment Law, was published last Thursday in the Official Gazette of the Republic, in its 57th ordinary edition. The aim of this amendment is to make the processes for foreign capital entering the country more efficient and streamlined.
Main changes introduced by the new regulations:
Streamlined procedures and shorter timeframes: Strict deadlines are established for the different phases of the investment process. For example, the Business Evaluation Committee will have seven business days to analyze applications, and investors will have a similar amount of time to make the requested adjustments. In addition, specific deadlines are defined for the approval of different investment categories, providing certainty and speed for investors.
Simplified documentation: Documentary requirements for both domestic and foreign investors are detailed and updated to make the process clearer and more predictable. This includes, for example, the submission of business plans based on current methodologies and the need for updated bank guarantees, ensuring the transparency and legitimacy of the proposals.
Greater flexibility in business management: Partnership agreements and bylaws of joint ventures must now include mechanisms to resolve situations such as changes in shareholding control or "shareholder deadlocks." This provides the parties with tools to manage conflicts and ensures the stability and continuity of businesses.
Streamlining of operational changes: The process for making modifications that do not alter the partners' percentage of ownership, such as increases or decreases in capital, is simplified. These decisions can be made directly by the Ministry of Foreign Trade and Foreign Investment (Mincex) within just 15 business days, eliminating the need to escalate them to higher authorities.
Transparency and oversight: Investment monitoring is strengthened, establishing the obligation to submit final technical-economic evaluations and post-investment studies. Similarly, the company liquidation process is regulated in greater detail, ensuring oversight and the necessary information for the State.
CHANGES IN PRACTICE
An example of this legal adjustment, the First Deputy Minister stated, is that foreign investment businesses will no longer have to hire employees through employment agencies, a practice intended to protect the rights of Cuban workers but which ultimately became an obstacle for investors. This will, in turn, allow employers to have a closer relationship with their employees.
The extension of the usufruct limit and the diversification of permitted activities, as well as the granting of up to 90 years for surface rights, will be a considerable incentive for businesses; always under the principle that Cuba does not relinquish ownership of the land, but only grants rights for its exploitation and use.
This will allow real estate businesses to carry out purchase and sale transactions of residential properties without jeopardizing important spaces of Cuban history, culture, and heritage.
Businesses with foreign capital will be able to use bank accounts abroad without the intermediation of Cuban banking institutions, and operate more easily in an environment of partial dollarization. This measure responds to the reality that Cuban banks have been among the state institutions most targeted by the U.S. embargo.
Carlos Luis Jorge clarified that the main causes of the state of the Cuban economy are the sanctions arbitrarily imposed by the Trump administration and the oil embargo, and that these measures seek to expand the options for Cuban companies in both the state and private sectors.
"The main objective of the Cuban authorities is for businesses to come, invest, generate employment and wealth, and above all, to be successful and beneficial for all parties. To this end, we have the responsibility to streamline procedures and documentation for the approval of foreign investment projects, decentralize business approvals, and create attractive conditions to attract foreign capital. We will do everything possible to generate the prosperity that the Cuban people so richly deserve," stated the First Deputy Minister.
DECENTRALIZATION AND NEW ECONOMIC ACTORS
The Vice Minister of Mincex, Déborah Rivas Saavedra, explained that these transformations respond to a strategic need: to generate foreign exchange earnings and achieve a trade surplus.
One of the most significant measures is Transformation 129, which authorizes state-owned, private, and cooperative companies to directly conduct foreign trade operations, subject to prior approval from the Ministry.
She stated that this will allow all actors with the capacity to operate in foreign trade, whether to acquire supplies, raw materials, or import finished products, to do so directly.
Regarding Transformation 128, which applies the principle of negative nomenclature to foreign trade operations, Rivas Saavedra explained that it represents a substantial change: instead of authorizing product lists for each entity, a single list of unauthorized products (except with express permission) will be established, simplifying and streamlining procedures.
"Everything else is possible, provided that international regulations and national standards for quality, health, and the environment are met," he clarified.
Rivas Saavedra also emphasized Transformation 127, which promotes exports through differentiated incentives and productive integration with foreign capital, and Transformation 130, which authorizes the sale of intellectual property, such as trademarks and patents.
He pointed out that Cuba has a qualified workforce, especially in the biopharmaceutical industry, "and we must leverage that capacity. Selling intangible assets is a global practice that generates dividends, and we must do it intelligently, protecting our rights and distributing that wealth among the population."
Another new development is that commercial representatives of foreign entities established in the country (branches) are now authorized to conduct foreign trade operations, something previously prohibited by Decree 32.
REGULATORY STREAMLINING
To provide legal support for these transformations, modifications to two fundamental laws—Law 118 and the Civil Code—are planned, as well as decrees, resolutions, and other complementary regulations.
However, the Vice Minister emphasized that the timeline "is not a rigid constraint" and that work is already underway to implement the adopted decisions.
Furthermore, in line with the mandate to avoid bureaucracy, the Ministry of Mincex has designed an agile work system that includes the creation of a specialized group with daily monitoring and systematic reporting to the Government. The Single Window for Foreign Investment and the Single Window for Foreign Trade are expected to begin receiving all applications and processing all procedures by the end of July and the beginning of August.
PRIORITY FOR INVESTORS WHO HAVE PLACED THEIR TRUST IN CUBA
Officials emphasized that new opportunities will be offered, first and foremost, to companies that have stood by Cuba during its most difficult times, despite the tightening of the U.S. embargo.
Likewise, the policy remains that Cuba does not discriminate based on the origin of capital, although priority will be given to relationships with strategic partners and countries with greater economic complementarity.
With these transformations, the Cuban Government reaffirms its decision to deepen the structural changes of the economic model, with the ultimate objective of generating foreign currency, boosting production and increasing the well-being of the population, in a context of blockade and external challenges.
