Cuba’s FDI Reaches $2 Billion

November 6, 2017 Taxation in Cuba

Cuban foreign investmentHAVANA – Cuba’s tax breaks may have proven effective at attracting new investment into the country.

Last week the government of Cuba announced that it has so far attracted more than USD 2 billion worth of foreign investment into the country.

Cuba needs approximately USD 2 billion in investment per year in order to keep its economy afloat.

The new investments are spread out over the 30 agreements signed so far this year.

Additionally, a further 80 deals are under negotiation, with 15 being nearly complete and potentially being ready to sign this year.

Out of the 30 deals, 11 are for businesses with 100 percent foreign ownership, and 14 are for administrative and production agreements.

It is widely believed that the new businesses are mainly involved in the tourism and energy industries.

For decades Cuba has seen foreign investment levels of only hundreds of millions per year.

However, in 2014 the country passed new laws which provided significant tax incentives, and the move has sparked a fresh wave of investments deals.

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