CUBA: An Introduction to Corporate/Commercial: International Firms

Analysis of the Legal, Economic and Investment Environment in Cuba

Cuba’s economic, legal, and political landscape is in constant transformation, reflecting the dynamics of a developing economy. This reality presents both challenges and opportunities for entrepreneurs seeking to enter the Cuban market, whether through foreign investment or by establishing themselves as suppliers to local entities in the commercial sphere.

In this context, it is essential to adopt a strategic legal approach that enables the proper structuring of operations and ensures full compliance with Cuba’s current regulatory framework.

The country is currently undergoing a complex economic, energy and financial crisis that is affecting daily operations and corporate performance. This situation has highlighted the need to attract foreign investment, diversify sources of financing, and formalise contracts that promote the integration, development, and utilisation of both renewable and non-renewable energy sources.

Significant opportunities are emerging in the energy sector, particularly in clean energy such as solar, wind and biomass, leveraging the country’s abundant natural resources.

The economic environment, however, remains constrained by limited access to traditional financing channels and foreign currency due to the sanctions regime imposed by the United States. Companies must therefore implement robust compliance frameworks and clear operating protocols to conduct business in Cuba without breaching US sanctions regulations. In this setting, due diligence is not optional – it is indispensable.

Cuba is also experiencing progressive growth in the number of entities driving its economy. According to the National Office of Statistics and Information, between September 2020 and March 2025, 9,550 micro, small and medium-sized private enterprises were created. This phenomenon has stimulated economic relations, expanded the supply of goods and services, and fostered the development of an emerging market.

The expansion of the private sector has significantly strengthened local legal practice, especially in commercial, corporate and tax law, which are evolving with greater depth and sophistication. Company incorporation, corporate structuring, new forms of labour relations, tax compliance and international transactions have become central elements of Cuba’s new economic and legal landscape.

This evolution has given rise to a more complex legal environment, with emerging contractual, tax, labour and corporate challenges. In response, the Cuban state has emphasised innovation, science and technology as key tools for modernising the economy and public administration, reflecting a clear commitment to efficiency and the adoption of competitive practices.

Alongside these developments, legislative policy is undergoing continuous modernisation in line with both national and global trends. A notable milestone was the enactment of the Transparency and Access to Information Act, reflecting the “Brussels effect” by promoting the protection of personal data and ensuring the right to disclosure, correction, rectification, modification and updating of information across multiple sectors.

Migration policy has also reached a turning point for Cuba’s economic and social development, following the adoption of three key legal instruments: the Migration Law, the Foreigners Law, and the Citizenship Law. These regulations address the longstanding need to modernise migration governance and introduce the concept of “effective migratory residence”, granting different privileges to foreign residents, emigrants, and business investors.

These measures will have significant economic implications when determining and designing modes of participation in Cuba’s economic model – both for Cuban nationals and for foreign investors – guided by principles of integration, equality, equity, opportunity, rationality, non-discrimination, individual treatment, public order, national defence, security, international co-operation, and respect for human rights.

Further, the Regulations on Advertising and Sponsorship were enacted to implement Law No 162, the Social Communication Law of 25 May 2023, setting out guidelines for the advertising and sponsorship of Cuban and foreign brands, products, and services in the domestic market.

A modern regulatory framework has also been approved to enhance alternative dispute resolution (ADR) mechanisms in the commercial sphere – particularly arbitration and mediation. New procedures establish the approval, qualification, and accreditation of both domestic and foreign arbitrators, creating a diverse pool of professionals capable of resolving domestic and international commercial disputes in accordance with internationally recognised standards.

At the institutional level, the Law on the Practice of Law and the Law on Notarial Services have strengthened the legal profession. The latter seeks to streamline and professionalise the notarial system, completing a cycle of reforms that reinforce the right to legal defence.

In the social sphere, Cuba has adopted a regulatory framework grounded in the principles of sustainability, progressiveness, equality, universality, and inclusiveness – aligned with the National System for Comprehensive Care of Life.

The role of law firms in this ever-changing environment is to anticipate their clients’ challenges and provide high-value strategic responses. This role unfolds in several dimensions:

• continuous adaptation of legal structures to the priority sectors outlined in the government’s annually published Portfolio of Opportunities, which requires in-depth knowledge of the country’s economic and regulatory environment;
• technical and professional capacity to accompany legislative, economic, political and social transformation processes that continually redefine the national operating framework;
• comprehensive and structured risk management in B2B relationships, an essential characteristic of contemporary global business environments; and
• the ability to bridge regulatory gaps through the drafting of sound, practical and functional legal instruments that provide legal and operational certainty to all parties involved.

This comprehensive approach extends beyond contract drafting and negotiation – it includes effective representation in administrative procedures and the practical application of current legal frameworks, thereby consolidating a truly strategic advisory service.

Cuba represents a distinctive combination of opportunities and challenges: a largely untapped market with high unmet demand, undergoing a sustained process of institutional reform and legal modernisation.

Clients engaging with the Cuban market can therefore find meaningful opportunities for investment and business development in one of the most unique and challenging jurisdictions on the international stage.