Legal & Regulatory Research

• Verify citizenship/residency eligibility for intended investment structure
• Research applicable Cuban laws including Law 118 (Foreign Investment Law)
• For US citizens, understand the US Treasury Department’s OFAC regulations and restrictions
• For Canadians, review Canada-Cuba bilateral investment agreements
• Identify required government approvals and authorizing agencies for your specific project
• Research precedents for similar investments and their outcomes
• Understand currency exchange controls and profit repatriation limitations
• Review tax implications in both Cuba and your home country

Market Research

• Conduct preliminary market visit to assess target areas and properties
• Identify locations with established foreign investment presence
• Research tourism data and trends for hospitality-related investments
• Connect with existing foreign investors for first-hand insights
• Analyze comparable property uses and performance metrics
• Investigate local infrastructure quality (water, electricity, internet)
• Understand seasonal demand patterns and peak periods
• Research customer demographics for your intended property use

Professional Network Development

• Identify law firms with Cuban investment expertise (both local and international)
• Connect with Cuban government ministries relevant to your investment
• Establish relationships with local business consultants and fixers
• Identify potential local business partners or joint venture participants
• Establish banking relationships that can facilitate transactions with Cuba
• Connect with your country’s embassy or trade office in Havana
• Identify property management companies for operational execution
• Research construction and renovation resources for implementation

Expert Tip: The Cuban investment environment emphasizes relationships and trust-building. Plan multiple preliminary visits over 6-12 months before formalizing any investment proposals. Personal connections with relevant officials and potential partners significantly impact approval processes. Many successful investors report spending a year building relationships before submitting formal proposals.

Regulatory Consideration: All foreign investment structures require approval from the Cuban government, typically through the Ministry of Foreign Trade and Investment (MINCEX). Approval timelines vary from 6-24 months depending on investment size, sector, and structure. Projects with higher economic impact, export potential, or employment creation receive priority consideration. Be prepared for multiple proposal revisions during the approval process.

Banking Setup

• Cuban Banking Options:
  • Banco Financiero Internacional (BFI): Primary bank for foreign companies and joint ventures
  • Banco Internacional de Comercio S.A. (BICSA): Specializes in international trade finance
  • Banco Metropolitano: Generally services individuals rather than businesses
  • Banco de Crédito y Comercio (BANDEC): Primarily domestic lending focus
• Account Types:
  • Currency Considerations: Separate accounts required for different currencies (CUP, USD, EUR, etc.)
  • Capital Account: For investment funds and capital contributions
  • Operational Account: For day-to-day business transactions
  • Reserve Account: Required for certain investment types
• Banking Challenges:
  • Limited international connectivity with few correspondent banking relationships
  • Complex documentation requirements and approval processes
  • Restrictions on fund transfers in and out of Cuba
  • US sanctions affecting dollar transactions and international transfers
  • Limited online banking capabilities and digital services

Financing Options

Conventional financing options are extremely limited in Cuba:

1. Self-Financing:
   • Most common approach for foreign investors
   • Capital typically transferred from abroad as equity
   • Plan for 100% cash investment with no leverage
   • Consider phased capital contributions aligned with project milestones
2. Cuban Bank Financing:
   • Extremely limited availability for foreign investors
   • Typically requires government-backed projects of strategic importance
   • Interest rates substantially higher than international markets
   • Short-term nature with rigid repayment terms
3. International Development Institutions:
   • Select multilateral institutions may finance specific project types
   • Focus on environmental sustainability, historic preservation, or social impact
   • Complicated application process with strict oversight
   • Limited applicability to commercial real estate ventures
4. Supplier Financing:
   • Arrangements with construction or equipment providers
   • Can help bridge capital requirements for development phases
   • Usually short-term with premium pricing
   • Requires suppliers comfortable with Cuban market

Unlike most real estate markets, mortgage financing is essentially non-existent for foreign investors in Cuba. Investment structures must accommodate the reality of 100% equity financing, significantly affecting return calculations and cash flow projections.

Currency Management

Cuba’s complex currency situation creates unique challenges:

• Currency Considerations:
  • Official Cuban Peso (CUP) with significant gap between official and unofficial rates
  • Business operations typically conducted in hard currencies (EUR, CAD) where permitted
  • US dollar transactions complicated by banking restrictions
  • Limited currency convertibility with government controls
• Capital Transfers:
  • Require specific authorization for investment funds
  • Documented through capital contribution certificates
  • Subject to verification of source of funds
  • USD transfers potentially problematic due to US restrictions
• Profit Repatriation:
  • Legally permitted for authorized investments but practically challenging
  • Subject to approval process and documentation
  • Availability of foreign currency can delay transfers
  • Tax implications in both Cuba and home country
• Risk Mitigation Strategies:
  • Structure contracts in stable currencies (EUR, CAD)
  • Include explicit provisions for profit repatriation
  • Maintain detailed financial records for all transactions
  • Establish banking relationships in multiple jurisdictions
  • Consider using Canadian or European financial intermediaries

Currency management represents one of the most significant operational challenges for real estate investment in Cuba. The gap between official and unofficial exchange rates can substantially impact actual returns, and limited convertibility can create cash flow bottlenecks. Investment plans should incorporate substantial contingencies for these currency-related challenges.

Property Search Resources

• Government Investment Portfolio:
  • Annual publication of pre-approved investment opportunities
  • Published by Ministry of Foreign Trade and Investment (MINCEX)
  • Includes specific real estate and tourism projects seeking foreign partners
  • Provides basic information on property location, size, and intended use
• Tourism Ministry (MINTUR) Proposals:
  • Portfolio of tourism-related real estate opportunities
  • Focus on hotel development, resort projects, and tourism infrastructure
  • May include existing properties requiring renovation/expansion
  • Often presented at international tourism fairs (FITCuba)
• Cuban State Companies:
  • Gaviota S.A. – Military-affiliated tourism and hospitality company
  • Cubanacán – Hotel and tourism development entity
  • Gran Caribe – Hotel management and development
  • Habaguanex – Old Havana property management and development
• Investment Consultants:
  • Cuban government-affiliated consultancy firms
  • International consulting firms with Cuba expertise
  • Legal firms specializing in Cuban investment
  • Important intermediaries for accessing unpublished opportunities

Unlike conventional real estate markets, Cuba has no multiple listing service or public property database. Property searches are primarily relationship-driven and often involve direct engagement with state entities rather than browsing listings. The most promising opportunities typically come through established networks and introductions rather than public sources.

Property Exploration Process

For foreign investors, the property exploration process typically follows these steps:

1. Preliminary Research:
   • Review government-published investment opportunities
   • Attend international investment forums featuring Cuban projects
   • Network with existing investors and consultants
   • Identify target regions and property types
2. Initial Market Visit:
   • Schedule meetings with relevant ministries and state companies
   • Conduct exploratory property tours with official representatives
   • Establish relationships with local experts and officials
   • Document potential opportunities with photos and notes
   • Assess infrastructure and access considerations
3. Formal Property Introduction:
   • Request official presentations of specific properties
   • Obtain preliminary property documentation
   • Meet with potential Cuban partners or joint venture entities
   • Conduct initial feasibility assessment
4. Detailed Property Evaluation:
   • Arrange formal property inspections with technical specialists
   • Review available title documents and property history
   • Assess renovation/development requirements and constraints
   • Evaluate zoning, permitting, and development limitations
   • Document property condition with professional assistance
5. Partner Negotiation:
   • Identify appropriate Cuban partner entity
   • Discuss preliminary business terms and structure
   • Evaluate partner’s experience and capabilities
   • Assess alignment on project vision and approach

Property exploration in Cuba is typically a much more relationship-intensive and time-consuming process than in North American markets. It often takes multiple visits over 6-12 months to identify suitable opportunities and establish the necessary relationships. Patience and persistence are essential virtues during this phase.

Property Evaluation Criteria

Assess potential investments using these key considerations:

• Legal Clarity:
  • Clear title without competing claims
  • Property included in approved investment portfolio
  • Explicit authorization for foreign participation
  • Absence of restitution claims from pre-revolution owners
  • Appropriate zoning and use permissions
• Physical Considerations:
  • Structural integrity assessment (particularly for historic buildings)
  • Infrastructure reliability (water, electricity, communications)
  • Accessibility and transportation connections
  • Environmental conditions and potential hazards
  • Renovation requirements and feasibility
• Market Potential:
  • Tourism demand patterns in the specific location
  • Competition analysis and market positioning
  • Local amenities and supporting infrastructure
  • Seasonal fluctuations and occupancy projections
  • Target customer profile and acquisition channels
• Operational Considerations:
  • Labor availability and skill levels
  • Supply chain reliability for operations
  • Local management capacity
  • Security and safety environment
  • Relationship with local community and authorities

Expert Tip: Historic properties in Old Havana and other colonial centers can offer exceptional character and tourism appeal but come with significant renovation challenges. Construction materials and skilled restoration specialists are limited resources in Cuba. Budget 25-50% more for renovations than comparable projects elsewhere, and expect timelines to extend 1.5-2x beyond initial projections. The Office of the Historian of Havana (for Havana properties) and similar local heritage authorities must approve any work on historic structures, adding another layer of complexity.

Legal Due Diligence

• ✓
  Title Verification: Confirm state ownership and absence of competing claims
• ✓
  Property Registry Search: Verify property is properly registered in Cuban Property Registry
• ✓
  Investment Authorization: Confirm property is approved for foreign investment participation
• ✓
  Zoning Verification: Check land use permissions and development limitations
• ✓
  Historical Designation: Identify any heritage protection requirements or restrictions
• ✓
  Environmental Status: Research environmental regulations and compliance requirements
• ✓
  Pre-Revolution Ownership: Research potential restitution claims from pre-1959 owners
• ✓
  Partner Due Diligence: Verify legal status and authority of Cuban partner entity

Physical Due Diligence

• ✓
  Structural Assessment: Professional evaluation of building condition and integrity
• ✓
  Infrastructure Evaluation: Assessment of electrical, plumbing, and mechanical systems
• ✓
  Utilities Availability: Verify water, electricity, and communications reliability
• ✓
  Environmental Assessment: Check for contamination, flood risk, coastal erosion
• ✓
  Construction Materials Assessment: Evaluate building materials and renovation requirements
• ✓
  Accessibility Evaluation: Transportation connections and physical accessibility
• ✓
  Hurricane/Weather Resilience: Assessment of building’s resistance to severe weather
• ✓
  Security Assessment: Evaluation of safety considerations and security needs

Financial/Operational Due Diligence

• ✓
  Market Analysis: Evaluate demand patterns and competitive landscape
• ✓
  Development Cost Assessment: Detailed renovation/construction cost estimates
• ✓
  Operating Cost Projection: Staffing, utilities, supplies, maintenance estimates
• ✓
  Taxation Analysis: Evaluation of applicable taxes and potential incentives
• ✓
  Revenue Projections: Realistic forecasting of operational revenue
• ✓
  Currency Risk Assessment: Analysis of currency conversion and repatriation factors
• ✓
  Supply Chain Evaluation: Assess availability of materials and operational supplies
• ✓
  Exit Strategy Assessment: Evaluate future transferability or divestment options

Expert Tip: Due diligence in Cuba requires patience and professional assistance. Documents may be incomplete, outdated, or difficult to access. Use a combination of Cuban and international professionals for due diligence—Cuban experts understand the local context, while international specialists bring comparative perspective and standards. Expect the due diligence process to take 3-6 months for straightforward properties and potentially longer for complex or historic buildings. Budget $15,000-50,000 for professional due diligence depending on project scope and complexity.

Preliminary Assessment Phase

1. Initial Consultation: Preliminary meetings with relevant ministries (typically MINCEX, MINTUR)
2. Letter of Intent: Non-binding expression of interest to pursue the project
3. Partner Identification: Selection of appropriate Cuban partner entity
4. Preliminary Business Concept: Basic outline of proposed investment and structure
5. Initial Feedback: Informal guidance on project viability and requirements

This preliminary phase typically takes 2-4 months and serves to gauge government interest in the proposal before significant resources are committed. Projects aligned with national development priorities receive more favorable consideration.

Formal Application Process

1. Investment Proposal Development:
   • Detailed business plan and market analysis
   • Technical-economic feasibility study
   • Environmental impact assessment
   • Architectural and engineering concepts
   • Financial projections and funding details
   • Proposed legal structure and partnership terms
2. Application Submission:
   • Formal submission to Ministry of Foreign Trade and Investment (MINCEX)
   • Accompanied by endorsement from Cuban partner entity
   • Supporting documentation and certifications
   • Application fees and processing requirements
3. Multi-Agency Review:
   • Evaluation by relevant ministries and government entities
   • Sectoral ministry assessment (e.g., MINTUR for tourism projects)
   • Local government input (provincial and municipal)
   • Economic, environmental, and social impact analysis
4. Negotiation and Revision:
   • Response to government feedback and concerns
   • Proposal modifications and adjustments
   • Technical clarifications and additional documentation
   • Finalization of project parameters and commitments
5. Final Approval:
   • Ministerial-level approval for smaller projects
   • Council of Ministers approval for larger investments
   • Issuance of formal investment authorization
   • Publication in Official Gazette

The formal application and approval process typically takes 6-18 months depending on project size, complexity, and alignment with government priorities. Projects with significant economic impact, employment creation, or export potential generally receive expedited consideration.

Post-Approval Implementation

1. Entity Formation:
   • Registration of joint venture or economic association
   • Notarization of foundational documents
   • Banking setup and initial capitalization
   • Tax registration and business licenses
2. Property Rights Transfer:
   • Formalization of surface rights or usufruct agreements
   • Registration of rights in Property Registry
   • Payment of applicable fees and taxes
   • Issuance of formal certificates of rights
3. Construction/Renovation Permitting:
   • Detailed design approval process
   • Construction permitting from relevant authorities
   • Environmental compliance certifications
   • Historical preservation approvals (if applicable)
4. Operational Licensing:
   • Business operation licenses and permits
   • Tourism category certifications (for hospitality projects)
   • Health and safety compliance inspections
   • Employment authorizations

The implementation phase after formal approval typically takes an additional 3-6 months before construction or renovation can begin. Each step involves its own bureaucratic processes and approvals, making professional guidance essential for successful navigation.

Approval Success Factors: Successful investment approvals in Cuba typically share several characteristics: (1) Alignment with government development priorities and economic needs; (2) Creation of significant employment opportunities for Cuban workers; (3) Introduction of new technologies or expertise; (4) Foreign currency generation potential through exports or tourism; (5) Environmental sustainability and cultural sensitivity; (6) Inclusion of training programs for Cuban staff; and (7) Strong relationships with relevant government entities. Projects demonstrating these elements have higher approval rates and often receive more expedited processing.

Construction Approach Options

• ✓
  Cuban State Construction Companies:

  State-owned enterprises like ECOA-5, ECOPP, or Puerto Carena specialize in different construction types. Required for most projects but may have limited capacity and material constraints. Schedule flexibility is essential as resource availability can cause significant delays.

• ✓
  Mixed Implementation Teams:

  Combining Cuban labor with foreign supervision and selected imported materials. This approach balances local knowledge with international standards but requires careful coordination and relationship management to be successful.

• ✓
  Foreign Construction License:

  Special authorization for foreign contractors to operate in Cuba, typically granted only for large or technically complex projects. Requires significant bureaucratic navigation but can provide greater quality control and timeline reliability.

• ✓
  Modular/Prefabricated Solutions:

  Increasingly permitted for certain project types, allowing off-site fabrication and faster on-site assembly. Can mitigate local material shortages but requires careful customs clearance and transportation planning.

Material Sourcing Strategy

Construction materials require careful planning in the Cuban context:

• Material Categories:
  • Locally Sourced: Basic materials like cement, aggregates, standard lumber, and some finishes
  • Import-Dependent: Specialty items, high-quality finishes, technology systems, and equipment
  • Hybrid Sourcing: Materials that can be sourced locally but may require quality supplementation
• Import Considerations:
  • Lengthy customs clearance processes (2-6 weeks typically)
  • Import duties and taxes adding 30-120% to material costs
  • Storage and security requirements for imported materials
  • Permits and authorizations for specialty equipment
• Supply Chain Management:
  • Maintain 3-6 month buffer inventory for critical materials
  • Develop relationships with multiple suppliers
  • Consider staging materials in third countries for faster access
  • Implement rigorous inventory tracking and security
• Material Substitution Planning:
  • Develop contingency specifications for key materials
  • Implement flexible design approaches that can accommodate substitutions
  • Identify local alternatives for imported materials where possible
  • Prepare decision matrices for rapid substitution decisions

Successful projects typically combine strategic importing of critical components with maximum utilization of locally available materials. This balanced approach reduces costs and customs complications while supporting project quality and timelines.

Quality Control Framework

Maintaining construction quality requires a multi-faceted approach:

• Technical Supervision:
  • Employ combined Cuban and international supervision teams
  • Implement frequent inspection protocols and documentation
  • Develop detailed quality standards manuals with visual references
  • Conduct regular third-party quality audits
• Training Programs:
  • Implement skill development training for local workers
  • Provide technical workshops on specialized construction methods
  • Develop mentorship programs pairing international and local personnel
  • Create illustrated procedure guides for key construction activities
• Documentation Systems:
  • Implement rigorous progress documentation protocols
  • Maintain detailed photographic records of all construction phases
  • Document material certifications and testing results
  • Create as-built documentation for future maintenance reference
• Testing and Commissioning:
  • Implement progressive testing of systems during construction
  • Conduct comprehensive pre-opening testing and commissioning
  • Document all test results and certification compliance
  • Develop detailed operation and maintenance manuals

Quality control is particularly challenging in the Cuban construction environment, where material inconsistencies and varying skill levels can impact outcomes. Successful projects invest heavily in supervision, training, and quality management systems to achieve desired results.

Development Timeline Reality: Real estate development timelines in Cuba typically extend 2-3 times longer than comparable projects in North America. A hotel renovation project that might take 12 months in Miami often requires 24-36 months in Havana. Contributing factors include approval processes, material availability, construction capacity limitations, and infrastructure challenges. Successful investors build substantial time contingencies into project plans and implement phased approaches that can deliver partial operation while development continues.

Cuban Tax Regime

• Corporate Income Tax (Impuesto sobre Utilidades):
  • Standard rate: 35% for most business activities
  • Reduced rate: 0-15% for authorized joint ventures in priority sectors
  • Tax holiday: 8-year exemption available for certain tourism investments
  • Reinvestment incentives: Partial exemptions for reinvested profits
• Sales Tax (Impuesto sobre Ventas):
  • Applied to sales of goods and services
  • Rates vary by sector: 10-25%
  • Tourism activities typically at higher end of range
  • Exemptions available for export-oriented activities
• Payroll Contributions:
  • Social security contribution: 14% of payroll
  • Special contribution to local development: 1% of gross revenue
  • Labor utilization fee: Varies based on sector and employment type
• Customs Duties and Import Taxes:
  • Import duties: 10-30% for most categories
  • Special regime of exemptions available for approved tourism projects
  • Temporary import provisions for construction equipment
  • Value-added tax on imports: 10%
• Property-Related Taxes:
  • No traditional property tax on land (state owned)
  • Surface rights fees based on location and property type
  • Document registration fees for property transactions
  • Stamp taxes on legal documentation: 1-4%

Tax regulations in Cuba are subject to change and can include special provisions for specific investment zones, sectors, or projects deemed strategically important. Negotiating favorable tax terms is often part of the investment approval process rather than applying standard rates.

Reporting Requirements

Foreign investors in Cuban real estate face comprehensive reporting obligations:

• Financial Reporting:
  • Monthly operational reports to Cuban partner entity
  • Quarterly financial statements to tax authorities
  • Annual audited financial statements
  • Special reports for foreign currency transactions
• Tax Filings:
  • Monthly tax withholding declarations
  • Quarterly estimated tax payments
  • Annual tax return and declaration
  • Special documentation for tax incentive qualification
• Employment Reporting:
  • Monthly payroll reports to labor authorities
  • Social security contribution filings
  • Foreign personnel authorization documentation
  • Training and development program reporting
• Operational Reports:
  • Tourism statistics for hospitality projects
  • Foreign currency generation reporting
  • Environmental compliance documentation
  • Investment implementation progress reports

Cuban accounting standards differ from IFRS or US GAAP, requiring specialized knowledge for proper reporting. Most successful foreign investors maintain parallel accounting systems—Cuban standards for local reporting and international standards for management and home country compliance.

Home Country Tax Considerations

Due to the unique relationship between Cuba and the United States, U.S. citizens face substantially more complex compliance challenges than Canadians or other foreign investors. U.S. economic sanctions against Cuba create significant legal exposure that requires specialized legal counsel. Canadian investors have a more straightforward path with established banking relationships and bilateral agreements, though tax optimization remains important.

Expert Tip: Tax planning should be integrated into the initial investment structure rather than addressed after implementation. Negotiate specific tax provisions during the investment approval process, as Cuban authorities have significant discretion to grant preferential tax treatment for priority projects. Document all tax agreements explicitly in the final investment authorization, as subsequent policy changes may impact standard rates while grandfathering previously approved arrangements. Maintain impeccable documentation as tax audits are common, and discrepancies can trigger substantial penalties.

Human Resources Considerations

Cuba’s unique employment system creates specific HR challenges:

• Employment Structure:
  • Cuban employees typically hired through government employment agency
  • Direct contracts with employees generally not permitted
  • Payment to government agency in hard currency; employees paid in local currency
  • Significant difference between employer cost and employee compensation
• Foreign Personnel:
  • Work permit requirements for all foreign staff
  • Quotas may limit number of foreign employees
  • Specific positions must be justified for foreign personnel
  • Residence permits tied to employment authorization
• Training and Development:
  • Strong emphasis on training programs for Cuban personnel
  • Investment agreements often include training commitments
  • Knowledge transfer typically an explicit requirement
  • Technical skill development opportunities highly valued
• Performance Management:
  • Limited flexibility in termination of underperforming staff
  • Alternative motivation and incentive systems needed
  • Creative approaches to rewarding exceptional performance
  • Cultural considerations in feedback and evaluation

Successful operators in Cuba develop strong training programs and creative incentive systems to compensate for the structural limitations of the employment system. Building a cohesive organizational culture that blends international standards with Cuban workplace expectations is essential for operational success.

Operational Challenges & Solutions

Expert Insight: “Operational success in Cuba requires flexibility, creativity, and relationship management. The most successful foreign investors develop the ability to navigate between international standards and local realities, creating operational models that bridge these different worlds. Building strong teams with both international experience and deep local knowledge is essential. Perhaps most importantly, maintaining positive relationships with local authorities, employees, and the community creates the foundation for long-term operational success in this challenging but rewarding market.” – Elena Rodriguez, Tourism Operations Consultant with 15+ years of Cuba experience

Exit Options

Exit Process Considerations

When planning an exit from Cuban real estate investment:

1. Exit Planning Timeline:
   • Begin formal exit planning 2-3 years before intended exit
   • Initiate preliminary government discussions early
   • Engage professional advisors with exit experience
   • Develop contingency plans for various scenarios
2. Asset Valuation:
   • Limited comparable data makes valuation challenging
   • Multiple valuation methodologies may be required
   • Cuban and international appraisers often reach different conclusions
   • Negotiated valuation approach often necessary
3. Regulatory Approvals:
   • Government authorization required for ownership transfers
   • Multiple ministries typically involved in approval process
   • Exit tax clearance certificates needed
   • Formal contract termination or transfer documentation
4. Capital Repatriation:
   • Profit repatriation process established in original investment agreement
   • Banking procedures for transferring capital out of Cuba
   • Currency conversion considerations and timing
   • Tax implications in both Cuba and home country

The exit process in Cuba typically takes significantly longer than in other markets, with approvals and procedures often extending 6-18 months. Maintaining positive relationships with Cuban partners and authorities throughout the investment period significantly improves exit outcomes.

Exit Timing Considerations

Several factors should influence your exit timing decision:

• Contract Term Milestones: Most Cuban investment contracts have defined terms (typically 15-30 years for major real estate investments). The most natural exit points align with either contract conclusion or major renewal/renegotiation windows (typically every 5-10 years).
• Capital Improvement Cycles: Major property renovations or reinvestment requirements can serve as natural decision points for exit or continuation. Cuban authorities often require significant capital improvements at contract extension points.
• Policy Environment Changes: Cuban economic policy evolves over time, sometimes creating more favorable exit conditions or, conversely, more challenging environments. Monitoring policy trends helps identify optimal windows.
• Tourism Market Cycles: The Cuban tourism market experiences significant cyclical patterns, influenced by both international conditions and bilateral relations with key source markets. Exiting during market strength improves valuation.
• International Relations Developments: Changes in Cuba’s international relationships, particularly with the United States, can dramatically affect market conditions and foreign investor interest, creating both opportunities and challenges for exits.
• Property Performance Trajectory: Properties typically experience performance curves with growth, stabilization, and eventual decline phases. Exiting during peak performance maximizes value but requires recognizing the cycle phase accurately.

Successful exits from Cuban investments typically result from a combination of strategic planning, relationship management, and timing. The most successful investors maintain flexibility in their exit timeline, allowing them to capitalize on favorable conditions when they emerge rather than forcing exits at predetermined points.

Expert Tip: Incorporate exit considerations into your initial investment structure and contracts. Explicit provisions regarding contract termination, asset valuation methodologies, transfer rights, and capital repatriation significantly improve exit outcomes. The most successful foreign investors in Cuba negotiate these elements upfront rather than leaving them to future negotiation. Additionally, maintaining positive relationships with Cuban authorities and partners throughout the investment lifetime creates the foundation for more favorable exit terms when the time comes.