The recent change in U.S. policy towards normalization of relations with Cuba has created exciting business opportunities for doing business in Cuba.  Here is an overview of how Cuba functions and business opportunities that are available for Americans.
 
Political and Governmental System. In the Republic of Cuba, the supreme body of power is the National Assembly of the People's Power, a primarily legislative body.  All other bodies of the State are created by the Assembly or form a part of the Assembly that also contains executive and judicial authority.
 
Economy. The Cuban economy is centrally planned. The economic system is based on the principles of socialist ownership of the basic means of production. There is also a growing entrepenurial class in the country.
 
Business Opportunities and Sectors Targeted for Foreign Investment
 
 As part of its central planning, the Cuban government has targeted certain areas of the economy for foreign investment. We have found the most promising business opportunities arise in the Mariel Special Development Zone (“MSDZ”).
 
The MSDZ is an area outside of the Customs jurisdiction where favorable special policies are applied. The goals of the MSDZ are to promote sustainable economic development by attracting foreign investment, to promote technological innovation and industrial concentration with a view to increasing exports, effectively replacing imports, and generating new sources of employment.
 
The activities and areas currently prioritized by the Cuban government in the MSDZ are:
 
- Biotechnology
 
- Renewable Energy
 
- Agriculture
 
- Agro/Food Industry
 
- Tourism and Real Estate Development
 
- Canning and Packaging Industry
 
- Telecommunications and Informatics
 
- Investment in Infrastructure
 
Benefits of Investment in the MSDZ
 
Investment in the MSDZ provides a number of benefits:
 
- Tax on Profits receives a ten year exemption, thereafter, a 12% tax rate applies. 
- Contribution to Social Security is limited to 14% on paid labor.
 
Investors are exempt from the following taxes:
 
- Tax on the use of labor force
- Tax on sales and services
- Customs tax
- Territorial contribution to local development
- Income tax

Other benefits of investing in the MSDZ include:
 
- MSDZ is authorized to extend rights previously granted
- Free transfer abroad of profits
- Modern port facility for ships and other maritime operations
- Protection from third party claims
- Transferability of investment
- Legal, Social and Political Stability
- Highly qualified labor force
- Favorable geographic location in relation to the United States and Latin America
 
Other areas outside of the MSDZ that are also considered priority investment areas are:
 
- Agriculture and Forestry
- Pharmaceutical and Biotechnological
- Food
- Sugar
- Light
- Chemical
- Electronic
- Iron
- Steel
- Machine Industries
- Tourism
- Transportation
- Health Care
- Construction
- Energy and Mines
- Wholesale Trade
 
Schedule an appointment with ASG to see how you can benefit from investment in Cuba.