Laws Affecting Investment: Law 118
Cuba has implemented several laws and regulations that affect foreign investment in the country. These laws are designed to promote foreign direct investment and protect the rights of foreign investors.
Law 118, also known as the Foreign Investment Law, was introduced in 2014 to update and modernize Cuba’s legal framework for foreign investment. The law establishes the legal framework for foreign investment in Cuba and provides a range of incentives and guarantees to foreign investors.
Some key provisions of Law 118 include:
Investment Protections: Law 118 provides for the protection of foreign investment in Cuba, including the right to transfer profits and capital out of the country, access to international arbitration in case of disputes, and guarantees against nationalization or expropriation.
Investment Incentives: The law offers several incentives to foreign investors, including tax exemptions, reductions or exemptions from import duties, and access to infrastructure and resources.
Investment Sectors: Law 118 identifies several priority sectors for investment, including agriculture, biotechnology, renewable energy, tourism, and transportation.
Investment Approval Process:
The law establishes a process for foreign investment approval in Cuba, which includes a review by the Ministry of Foreign Trade and Investment (MINCEX) and other relevant government agencies. The approval process is designed to be streamlined and efficient, with a maximum review period of 60 days.
In addition to Law 118, there are several other laws and regulations that affect foreign investment in Cuba. These include:
Labor Law:
Foreign investors in Cuba are subject to Cuban labor laws, which include provisions for minimum wage, maximum working hours, and other employment standards.
Tax Law:
Foreign investors are subject to Cuban tax laws, which include corporate income tax (CIT) and other taxes. However, as mentioned earlier, Law 118 provides for several tax incentives and exemptions for foreign investors.
Joint Venture Law: Foreign investors that form joint ventures with Cuban entities are subject to the Joint Venture Law, which establishes the legal framework for joint ventures in Cuba.
Foreign Exchange Law:
Foreign investors are subject to Cuban foreign exchange laws, which regulate the transfer of foreign currency into and out of the country.