Legislative Outlook for Cuba: Developments in 2024 and Projections for 2025

By Janet Ghersi Almarales

The Cuban government has designed a legislative calendar for 2024 that aligns with the country’s evolving economic, political, and social context. This calendar creates space for new economic actors, who have become key contributors to the country’s development. However, this evolution has led to internal challenges related to the establishment of private property, which plays a complementary role in the economy when exercised over certain means of production by natural or legal persons, both Cuban and foreign. This process of change and regulatory reform is aligned with the principles outlined in the 2019 Constitution of the Republic of Cuba.

The Legislative Outlook for 2024: Key Advances and Transformations

Although the full legislative calendar for 2024 has not yet been completed, Cuba has made significant progress in terms of regulatory development. Major updates have been implemented in areas such as migration, economic policy, taxation, labor, environmental protection, and social policy—particularly through the promotion of transparency, access to information, and the restructuring of international trade dispute resolution mechanisms that offer stronger guarantees than ordinary courts.

In the area of migration, the country's policy has been updated through the adoption of three key laws: the Migration Law, the Aliens Law, and the Citizenship Law. These reforms reflect a modern, integrated approach to the circular nature of migration and the reality of multiple citizenships, aligning with international best practices.

The Transparency and Access to Information Law was also approved, reflecting the influence of EU data protection standards (commonly referred to as the “Brussels effect”). The law aims to safeguard personal information and guarantees the right to disclosure, correction, rectification, modification, and updating of personal data, as well as the appropriate management of information across different domains.

Additionally, regulations were issued to govern advertising and sponsorship, expanding on Law No. 162, the Social Communication Law of 25 May 2023. These regulations outline the rules for the promotion of Cuban and foreign brands, products, and services in the domestic market.

In the environmental sphere, protections for designated protected areas were strengthened to ensure specific conservation and sustainable use goals. These rules apply to all individuals—Cuban and foreign, natural and legal—engaged in any activities within those areas.

A modernized regulatory framework for alternative dispute resolution (ADR) in commercial matters was adopted, particularly in arbitration and mediation. Procedures for the approval, qualification, and accreditation of national and foreign arbitrators were established, ensuring a diverse pool of experts to resolve both domestic and international disputes. Institutional and ad hoc arbitration were formally regulated.

In the social domain, a regulatory framework was created consistent with the principles of sustainability, progressiveness, equality, universality, and inclusiveness, as part of the establishment of a National System for Comprehensive Life Care.

In the area of taxation, modest reforms were introduced—particularly affecting micro, small, and medium-sized enterprises (MSMEs). A general tax regime was implemented for self-employed workers, and a 5% Labor Force Utilization Tax was introduced. A minimum wage was established for remuneration, and the previous exemption from personal income tax on dividends earned by MSME partners during their first year of operation was eliminated, as the incentive function of the measure was deemed fulfilled.

Regulations governing private economic actors were amended, modifying the framework for the creation of MSMEs and non-agricultural cooperatives (CNAs). Authorization for their formation was delegated to municipal governments, and a new entity—the National Institute of Non-State Economic Actors—was established to oversee policy implementation. As part of this restructuring, effective residence in the country was set as a requirement for membership. Transfers of rights over state assets must now be conducted through public tenders. Additionally, the list of prohibited activities for private actors (numerus clausus) was updated, implicitly allowing any activity not listed as restricted. The concept of corporate social responsibility was also redefined, focusing on both the execution of the corporate purpose and related or derivative actions.

Resolution 56/2024 was approved to regulate wholesale and retail trade by private economic actors. While existing retail regulations remain in force, wholesale trade regulations were modified to include the participation of state entities, requiring private actors to update their corporate purposes and commercial licenses accordingly.

Adjustments were made to the special social security regime applicable to self-employed workers, members of CNAs, private MSMEs, and owners of local development projects. However, some regulations related to labor rights, principles, and duties remain pending and are expected to be addressed in the upcoming reform of the Labor Code, scheduled for presentation at the final ordinary session of Parliament in December.

The Law on the Practice of Law and the National Organization of Collective Law Firms was also approved, strengthening the right to legal defense. The legal profession is now formally defined as encompassing the provision of legal advice, consultation, representation, and defense of the rights and interests of natural and legal persons before courts, arbitration panels, administrative bodies, and both public and private institutions. The law also restructured the internal governance of the National Organization of Collective Law Firms, the leading entity overseeing legal practice in Cuba.

The new Notary Law was passed to centralize and modernize notarial functions in line with the country’s digital transition. A computerized management system is being introduced to streamline services and reduce bureaucracy. Notarial offices will be self-financed through their revenue, enabling financial sustainability while contributing to the State. The law also reorganizes and codifies the general theory of public instruments, introduces accessible language formats, and incorporates new family and commercial legal instruments, reflecting the instrumental implementation of Cuba’s evolving substantive legislative policy.

Turning Points in Legislative Policy for Economic and Social Development

Among all legislative changes, migration policy marks a critical turning point for Cuba’s economic and social development. The newly approved—but not yet fully implemented—Migration Law, Aliens Law, and Citizenship Law seek to provide comprehensive regulation of migration policy, introducing the concept of effective migratory residence. This new status grants differentiated privileges to residents abroad, categorizing them as residents abroad, emigrants, or business investors.

These laws apply to both natural and legal persons, including Cuban citizens; foreign nationals within Cuban territory or holding an immigration classification; joint ventures and other forms of international economic associations; Cuban or foreign companies; local People's Power bodies; political, social, and mass organizations; professional associations with public purposes; and companies or agencies related to international transportation, as well as diplomatic, consular, and other authorized Cuban missions.

These reforms will have economic implications when designing and choosing forms of participation in the Cuban economy—applicable to both Cuban and foreign actors—under principles such as integration, equality, equity, opportunity, rationality, non-discrimination, individual treatment, public order, national defense and security, international cooperation, and respect for human rights.

Challenges, Projections, and Legislative Priorities for 2025

According to the legislative agenda published by the National Assembly and the government’s broader policy framework, several key reforms remain pending. Chief among them is the reform of the Labor Code, particularly to incorporate the realities of new economic actors and flexible working modalities, including remote and telework.

In terms of fundamental rights, the Code on Children, Infancy, and Youth is under development, aligned with principles laid out in the Family Code. In the agri-food sector, a comprehensive land ownership and land use law is pending. This law will define different types of land use, acquisition mechanisms, and the rights and responsibilities of landowners.

Outside the current timetable, but also of high relevance, are proposed laws on consumer protection, a digital development and transition strategy across sectors, economic and financial regulation, and the governance of crypto-assets. In the environmental field, more specific regulations on renewable energy, waste management, and natural resource use are also necessary.

As part of its strategy to modernize Cuba’s legislative framework, the National Assembly of People’s Power has included in its 2025 legislative calendar a set of priority laws aimed at fostering sustainable economic and social development. These include:

Social Security Law
Education Law
Sports Law
Housing Law
Identity Law
Forestry Law
State Heritage Law
Internal Migration Law
Police Services Law
Law on Diplomatic Franchises and Immunities
Law on Forms of Association
State Financial Administration Law
Tourism Law

Concluding Remarks

In summary, the updating of Cuba’s legislative framework has made significant strides in 2024, demonstrating a strong commitment to modernization and to adapting to new economic and social realities. Reforms in key areas—such as migration, labor, information transparency, and private sector regulation—have been central to this progress. Nonetheless, critical challenges remain, including Labor Code reform, agricultural legislation, and regulatory development in emerging areas like renewable energy.

Looking ahead to 2025, the National Assembly is expected to continue prioritizing laws that support Cuba’s economic and social sustainability, such as the Social Security Law, Education Law, and Tourism Law. These efforts aim to strengthen the Cuban economic model, promote inclusion and digitalization, enhance sustainability, and ensure the well-being of the population.

Contact

Dávalos Abogados will continue to monitor developments in this area of interest to Cuban and international businesses. If you would like more information or have any questions, please do not hesitate to contact us.

Lourdes Dávalos León

Managing Partner

📞 +34 689 594 350

📧 [email protected]

Claudia M. Girón González

Associate admitted in Cuba

📞 +34 607 412 236

📧 [email protected]

Erick Machado Cerver

Associate admitted in Cuba

📞 +34 613 542 575

📧 [email protected]