Investment Mechanisms

Joint ventures between Cubans and foreigners are currently the most common form of business arrangement. To align with a local entity, foreign investors must sign an agreement and produce documents detailing both the economic association and the venture’s operating by-laws. Both parties must also agree to the proportion of capital invested by each, how profits are to be distributed, and administrative functions.

Measures have recently been introduced that also allow Joint Ventures to purchase real estate. Property purchases can be made for private or tourism-related purposes. Commercial property investments are also allowed by foreign companies and real estate development is permitted, including the building of hotels and vacation apartments.

The Cuban authorities examine all joint ventures on a case-by-case basis but special benefits are afforded firms that invest in Cuba through an International Economic Association Agreement. Such privileges are normally assigned to firms operating in sectors that the government identifies as a high priority for development.