Cuba partially opens to foreign investments with new rules on hiring and foreign accounts

Havana makes a partial opening to foreign investments. Legislative Decree 128, published today in the Official Gazette, modifies the 2014 law on investments and allows mixed enterprises, entirely foreign ones and parties to international economic association contracts to directly hire Cuban workers and foreign permanent residents, without the obligation to resort to state agencies. The latter will not be abolished and will be able to continue to manage hiring, while companies that will switch to the new system will have up to 60 days to transfer documents and procedures and current employees must be guaranteed the level of income already received.

The reform introduces other openings. Joint ventures and Cuban investors involved in international economic associations will be able to open and manage bank accounts abroad without prior authorization from the Central Bank, simply by communicating it within seven days, and will be able to access financing from foreign institutions. Companies will also be able to decide directly on the destination of profits and create incentive funds for workers. There are also bonuses in currency, when generated by the activity.

Finally, the space for private individuals in tourism is expanding, with travel agencies, tourist transport and independent guides. However, the latter will have to promote the "ethical and moral values" of Cuban society and keep up to date on the country's political and social current affairs.