Why Cuba? > Legal Considerations
The Cuban government has taken numerous steps to open up the country to foreign businesses and investments, most recently with the introduction of Law 118 (read more below)
In general terms, suppliers and manufacturers have an obligation to make sure products are safe. In addition, companies must respect intellectual property rights, with the National Office of Industrial Property (OCPI) being responsible for this in Cuba.
Cuba has adopted a new investment law entitled Law 118 that abolishes duty free zones and industrial parks while expanding areas for investment. Under the new law, investment is encouraged in all economic sectors.
KEY CHANGES IN THE NEW LAW
- This new law cuts the tax on profits in half—from 30 percent to 15 percent for most industries—and eliminates the prior 25 percent tax on labor costs.
- It allows 100 percent foreign ownership, which, though previously legal, was never allowed in practice.
- Investors in joint ventures get an eight-year exemption from all taxes on profits.
- It recognizes the intellectual property rights and technological innovation of the foreign investor.
- All the forms of investments are officially registered by a public instrument before a notary and inscribed in the Trade Register Office. The prior inscription requirement in the Cuba Chamber of Commerce has been rescinded.