Legal keys, real scope, and regulatory challenges of the measures announced on 16 March
On the afternoon of 16 March 2026, the Cuban government, through Vice Prime Minister and Minister of Foreign Trade and Foreign Investment Óscar Pérez-Oliva Fraga, announced a set of measures aimed at enabling broader participation of Cubans residing abroad in the national economy, including access to private companies, large-scale productive projects, and the financial system.
The initiative, set against a backdrop of deep economic crisis and high tension with the Trump administration, marks a turning point in the relationship between the diaspora and the domestic productive sector, with significant regulatory and investment implications. From a legal perspective, these measures must be assessed not only for their content and policy message, but also for their compatibility with— or tension against—the existing legal framework.
WHAT DO THE ANNOUNCED MEASURES INCLUDE?
The announced decisions point to a significant opening in several areas:
- Possibility for non-resident Cubans to participate as shareholders or owners of private companies.
- Access to large-scale projects, including infrastructure and strategic sectors.
- Partnerships with private companies and also with state entities under different investment modalities.
- Participation in agricultural activities through the granting of land in usufruct.
- Integration into the national financial system: foreign currency accounts, access to financial instruments, and potential participation in investment funds.
- Possible development of activities in emerging sectors such as virtual asset services.
In essence, this represents an attempt to turn the diaspora into an active economic actor beyond remittances or indirect participation in private business.
WHAT IS THE CURRENT REGULATORY FRAMEWORK?
Foreign investment regime (Law No. 118/2014)
A key technical point is that Cuban law defines a foreign investor based on domicile rather than nationality.
This means that a Cuban residing abroad could, in principle, already have qualified as a foreign investor since 2014. Therefore, the announced opening does not necessarily require a structural legal reform of the concept of foreign investor, but rather a shift in administrative practice, which has historically been restrictive regarding the participation of emigrated or non-resident Cubans.
However, the current regime still presents significant limitations: investment channelled through specific structures or modalities, strong state intervention, and dependence on discretionary authorisations based on national strategic priorities.
Private business regime (MSMEs)
The current framework for Cuban micro, small and medium-sized private enterprises requires partners to have effective residence in the country, which is directly incompatible with the announced measures. Consequently, adjustments to MSME regulations will be essential.
Migration framework
In July 2024, a new Migration Law was approved, whose draft introduced categories such as “effective residence” and “residents abroad – investors and businesspersons”, enabling participation in authorised economic activities. However, the law has not yet been published in the Official Gazette. As a result, a significant regulatory gap persists: the key legal category required to operationalise this opening is not yet in force.
Land usufruct regime
Cuba has a consolidated and relatively conservative legal framework for granting state land in usufruct to natural and legal persons. Access has traditionally been conditioned on residence in the country and personal engagement in productive activity. More recently, usufruct rights have been granted to foreign investors for food production projects.
It is not yet clear under which regime non-residents would be included, which will require redefining access mechanisms. In any case, this represents a notable step in a sector critical for food security.
Public-private partnerships
Decree-Law No. 114/2025 recently introduced and regulated public-private partnerships in the Cuban economy, which could indirectly include, going forward, Cubans residing abroad participating through private companies or foreign investment structures.
Financial system
The current banking and financial framework allows for foreign currency operations and licensing across a broad range of activities. However, in practice, its application to non-resident Cubans as direct investors—particularly in complex investment structures uncommon in the Cuban market—has been very limited. Specific legislative and regulatory adjustments will therefore be required.
Virtual asset service providers
The Central Bank of Cuba has issued regulations for licensing virtual asset service providers operating in or from Cuba, including services such as exchange between virtual assets and legal tender, transfer, custody or administration of virtual assets, and related financial services. These rules focus on the connection of such services to the Cuban financial system, rather than the nationality of authorised providers. Therefore, no major changes would be expected in this area.
WHAT CHANGES CAN BE EXPECTED?
For the announced measures to become effective, a combination of regulatory and operational adjustments is required:
Adaptation of MSME regime
- Explicit recognition of non-resident shareholders.
- Regulation of economic rights (dividends, share transfers, capital repatriation).
- Corporate governance rules adapted to foreign participation.
Implementation of the migration framework
- Publication of regulations and development of the “investor and businessperson” category.
- Streamlined administrative procedures.
- Legal certainty regarding entry, stay, and economic rights.
Usufruct regime for non-resident investors
- Clarification of access mechanisms (direct or indirect participation).
- Regulation of rights and guarantees over land.
- Legal certainty for investments made under usufruct schemes.
Foreign investment regime adjustments
- Operational recognition of non-resident Cubans as foreign investors.
- Reduced discretionary approval in investment processes.
- Greater transparency in authorisation mechanisms.
Development of financial investment mechanisms
Given the absence of a capital market:
- Creation of investment funds and collective investment vehicles.
- Clear rules on returns, liquidity, and capital repatriation.
Strengthening of the banking framework
- Foreign currency account accessibility.
- Broader access to financial instruments for investment and financing.
- Functional integration between banking and productive investment.
OPPORTUNITIES AND CHALLENGES
Opportunities:
- Mobilisation of diaspora capital with strong economic and cultural ties.
- Transfer of business know-how and international networks.
- Boost to the private sector and strategic projects.
- Reconfiguration of economic relations with the diaspora.
Challenges:
- External financial constraints and perceived country risk.
- Need for a stable and predictable legal framework.
- Structural limitations (financial, currency, institutional).
- Potential gaps between formal rules and administrative practice.
- Operational complexity in the absence of a developed financial market.
CONCLUSIONS
The measures announced by the Cuban government represent a significant signal of openness with potential positive impact on economic development. However, their real effectiveness will depend on their translation into enforceable legal norms and, above all, into coherent administrative practice with simple and efficient procedures.
Rather than a full legislative overhaul, the scenario suggests a reconfiguration of the existing legal framework, accompanied by targeted adjustments in MSMEs, migration, and investment mechanisms.
From the perspective of specialised legal advisory in Cuban law, the key focus will be on structuring investment vehicles, interpreting the evolving regulatory framework, and managing regulatory risk in a rapidly changing environment.