Key Foreign Investment Reforms

Cuba published a package of legal measures in the Official Gazette that flexibilizes foreign investment and foreign trade, aiming to simplify procedures, reduce processing times, and respond to investor demands.

Oscar Pérez-Oliva, Deputy Prime Minister and Minister of Foreign Trade and Investment, explained that regarding foreign investment, Decree-Law 128/2026 was published to amend Law 114. The decree eliminates the mandatory requirement to hire workers through state employing entities, leaving this choice to the investor's discretion.

During a press conference, the official noted that state employing entities will remain operational, but investors may now decide whether to hire employees directly or utilize employing agency services.

The Decree-Law also removes the requirement for prior authorization from the Central Bank of Cuba to open overseas bank accounts, a measure accompanied by a resolution from the institution's president regulating such accounts.

Pérez-Oliva indicated that policies regarding associations between private entities and foreign companies were updated, allowing for joint ventures between foreign firms, private Cuban businesses, and cooperatives.

Updates to Foreign Trade Framework

Regarding foreign trade, Resolution 126 of the Ministry of Foreign Trade and Investment was approved, establishing a new procedure for granting foreign trade faculties.

"These requirements will be identical for any legal entity, regardless of its ownership model or institutional nature," he highlighted.

The regulation establishes a list of prohibited or restricted products that entities cannot import or export without express authorization, representing "nine percent of the total items included in the harmonized classification system," according to the Deputy Prime Minister.

Pérez-Oliva clarified that these transformations are general in nature rather than directed at any specific country, seeking to flexibilize procedures, simplify operations, reduce bureaucratic delays, and address investor needs.

The official added that Cuba is currently working on updating its overall Foreign Investment Law, which is scheduled for discussion and approval during the November session of the National Assembly of People's Power.