Cuba – Self-Employment

How does self-employment work for expats in Cuba?

Cuba’s history with private enterprise and self-employment has been protracted and contentious. Self-employment was formally permitted in 1993, yet for most of that period the system was designed to serve Cuban nationals exclusively. The country’s centrally planned economy ensured that the state maintained a dominant grip on employment at every level, with private activity confined to a narrow and closely monitored space.

A watershed moment arrived in 2021. On 19 August of that year, the Cuban government enacted a series of decrees aimed at broadening the economy’s private dimension, with particular emphasis on micro, small, and medium-sized enterprises. Following the introduction of private MSMEs in 2021, Cuba has seen more than 11,000 private MSMEs and 200 state-owned MSMEs come into existence.

Despite these developments, the rules governing who may participate in private enterprise remain deeply restrictive for non-Cubans. To become a partner in a private MSME, a person must either be a Cuban national with “effective residency” status or a foreign national who holds permanent residency in Cuba. This threshold is considerably higher than the basic legal residency required in most other countries — permanent residency in Cuba is a formal immigration classification that generally demands a lengthy, documented presence on the island.

A new migration bill passed by the Cuban Parliament in July 2024 is expected to raise the residency requirement to 183 days per year. This could present additional obstacles for foreign investors who are unable to satisfy this condition. The current standing of this requirement should always be verified directly with the Cuban immigration authority before formulating any plans.

Foreigners holding immigration status as Temporary Residents, Real Estate Residents, or Humanitarian Residents are obliged to obtain prior authorisation before undertaking any professional or work-related activity. In practical terms, this means that holding a tourist visa or short-stay permit provides no legal basis for operating as a self-employed individual or business owner on the island.

Decree 107 enumerates a total of 125 activities that private economic actors are barred from carrying out. Among the most significant prohibited areas are the manufacture of pharmaceutical products, financial intermediation, book publishing and layout, television programming and broadcasting, telecommunications, and various transport and storage operations. Anyone contemplating self-employment in Cuba must carefully check their planned activity against the current prohibited list, which was updated in 2024.

What self-employment and business structures are available to expats in Cuba?

Cuba’s commercial landscape has its own terminology and organisational logic, which differs considerably from the sole trader, limited company, and partnership models common in most market economies. A clear understanding of Cuban equivalents is essential before planning any business activity.

Self-employed worker (Trabajador por Cuenta Propia / TCP) is the closest Cuban analogue to a freelancer or sole trader elsewhere. As of 2024–2025, approximately 496,535 Cubans were registered under this status, making it the most widespread form of private economic participation. TCPs operate independently, carry personal liability for their activities, and must select their activity from an officially approved list. Foreign nationals wishing to access TCP status must hold permanent residency.

Private MSME (Micro, Small, or Medium-Sized Enterprise) is broadly comparable to a limited liability company in other jurisdictions, in that it constitutes a legal entity separate from its owners. MSMEs may be “state-owned, private, mixed, or owned by political, mass, and social organisations.” For more ambitious commercial ventures, private MSMEs are the preferred structure and offer a degree of protection from personal liability.

Non-Agricultural Cooperative (Cooperativa No Agropecuaria / CNA) is a member-owned collective arrangement, similar in concept to a workers’ cooperative in other economies. Since September 2021, 71 non-agricultural cooperatives have been established. This structure is less frequently adopted by expats and is found mainly in sectors such as construction, catering, and services.

Joint Venture (Empresa Mixta) is the principal vehicle for substantial foreign investment. This structure is created through a partnership between domestic and foreign investors — in essence a corporation whose authorised capital incorporates registered shares held by both Cuban and foreign participants. It is among the most commonly pursued solutions for foreign investors seeking significant involvement in the Cuban economy.

Totally Foreign Capital Company (Empresa de Capital Totalmente Extranjero / IBC) also exists as an option. Establishing a company with 100% foreign ownership in Cuba is permitted under regulations that affirm the principle of protecting the investments of foreign persons, subject to the satisfaction of specific criteria. However, in sectors considered strategically sensitive — such as mining — the authorities may require partnerships with Cuban entities.

International Economic Association Agreement (IEAC) represents a contractual arrangement rather than a distinct legal entity. Under this model, no separate corporate body is created; instead, an agreement is concluded between one or more Cuban investors and foreign entrepreneurs, with Cuban legislation setting out the sectors in which such contracts are permissible.

How do you register as self-employed in Cuba?

Registering as a TCP in Cuba involves engagement with several government bodies and requires advance confirmation that the intended activity appears on the permitted list. The process is conducted entirely in Spanish and, in most instances, demands in-person attendance at municipal offices. Given the complexity of the process and the frequency of regulatory changes, working with a Cuban lawyer or specialist adviser is strongly recommended. The steps outlined below reflect the process as understood in 2024–2025; always confirm current requirements with the relevant Cuban authority.

1. Verify your immigration status. Before taking any further steps, confirm that you hold permanent residency in Cuba. Foreign nationals must be permanent residents to register as self-employed or become a partner in a private MSME. If you have not yet obtained this status, you must do so through the immigration authority (Dirección de Inmigración y Extranjería) before proceeding.
2. Review the permitted activities list. Identify your planned self-employment activity and check it against the current approved list of TCP activities. As of 2024, Decree 107 establishes new restrictions and identifies 125 activities that private economic actors are prohibited from carrying out. This list is revised periodically; confirm the most up-to-date version with the National Institute of Non-State Economic Actors (INAENE) or your local municipal authority.
3. Assemble the required documents. Documents typically required include: a valid passport and permanent residency card; proof of address in Cuba; a criminal record certificate (apostilled or legalised if obtained abroad); and a health certificate. Depending on the nature of the activity, additional documentation may be necessary. Consult the relevant municipal authority or a Cuban notary for a definitive and current list of requirements.
4. Lodge your application with the municipal authority. The Ministry of the Economy and Planning (MEP) has historically reviewed and authorised MSME applications, though responsibility has been progressively shifting to the municipal level. For TCP registration, submit your completed application form at the appropriate local office; the form must carry a notarised signature. Check current procedures with INAENE, as the decentralisation of the approval process to municipalities is ongoing.
5. Register with the National Tax Administration Office (ONAT). The Cuban tax system is administered by ONAT. Every self-employed worker must register with ONAT for tax purposes and obtain a taxpayer identification number. This registration also covers payroll and social security obligations for those who employ staff.
6. Register with social security (INASS). Self-employed workers are obliged to contribute to the social security system. Register with the National Institute of Social Security (INASS) and establish the applicable contribution rate for your activity category. Adjustments were made in 2024 to the special social security regime applicable to self-employed workers, CNA members, private MSMEs, and owners of local development projects. Verify current rates with INASS.
7. Obtain any sector-specific licences. Certain activities — including food preparation, accommodation provision, and transport — require supplementary operating licences from the relevant sector ministries. Determine whether your activity attracts any such additional approval requirements before you begin operating.

Processing times vary considerably and may extend from several weeks to several months, particularly when the authorising body is dealing with a backlog. Fees are denominated in Cuban pesos (CUP) and are subject to revision; check the current fee schedule with ONAT or the relevant municipal office, as precise figures could not be verified to a reliable standard at the time of writing.

How do you set up a company in Cuba as an expat?

Establishing a business entity in Cuba as a foreign national is considerably more demanding than the equivalent process in most other countries, and in many respects resembles applying for a foreign direct investment project rather than registering a conventional company. Multiple government ministries are involved, and the process can take many months to complete. Professional legal and commercial guidance is not a luxury — it is a fundamental necessity.

1. Decide on your preferred structure. Determine whether you intend to pursue a Joint Venture, a Totally Foreign Capital Company (IBC), or an International Economic Association Agreement (IEAC). Each carries different requirements, approval pathways, and consequences for ownership and control. The available legal forms through which a foreigner may establish a company in Cuba are defined by the Law on Foreign Investment.
2. Engage the Ministry of Foreign Investment and Economic Co-operation (MINCEX). MINCEX, acting through its Dirección de Evaluación y Gestión de Proyectos de Inversión, manages negotiations with foreign partners. Submit a formal investment proposal for assessment. This ministry serves as the primary gateway for foreign business establishment in Cuba and is where eligibility and sector suitability are initially determined.
3. Prepare and notarise your documentation. A written application must be submitted by the authorised representative of the corporation or individual entrepreneur, whose signature must be authenticated by a notary public or chamber of commerce. A deed or power of attorney identifying the natural person who will act as company representative — together with that person’s powers and curriculum vitae — must also be provided.
4. Supply financial documentation. A banking report issued within the preceding three months by a bank within Cuba’s National Banking System is required, along with a summary of the entrepreneur’s or company’s history covering the five years prior to registration, and general information about the techniques, procedures, and policies relied upon.
5. Register with the Commercial Registry. Incorporating a company in Cuba requires registration with the Commercial Registry, which is administered by the General Directorate of Registries and Notaries within the Ministry of Justice. Registration confers legal personality on the company and creates a binding obligation to honour contracts entered into during this process.
6. Obtain a permit to operate. Companies with 100% foreign capital must obtain an operating permit and subsequently register with the Chamber of Commerce. Any sector-specific licences and permits required for the chosen activity must also be secured at this stage.
7. Register with ONAT and open a corporate bank account. Register the entity with the National Tax Administration Office (ONAT) and open a business bank account with an authorised Cuban institution. All companies must maintain financial records in accordance with national accounting standards (Cuban GAAP), using a double-entry bookkeeping system with full documentation of every transaction. Quarterly financial statements — including a balance sheet, income statement, and transaction report — are required, and annual financial statements certified by an independent auditor must be submitted at the close of the financial year.

As of 2024, no minimum capital threshold is stipulated for a Joint Venture or Public Limited Company structure in Cuba. However, demonstrating adequate financial capacity forms part of the investment approval assessment in practice. While Cuba’s legislation is broadly designed to attract foreign investment, the company formation process demands considerable effort given the requirement to obtain government agency permits, and the procedure itself is lengthy. Verify all current requirements and applicable fees directly with MINCEX and the Ministry of Justice.

Can you work as a digital nomad in Cuba?

Cuba currently offers no dedicated digital nomad visa or any formally equivalent pathway for location-independent workers. This distinguishes it from a growing number of countries — including Spain, Portugal, Costa Rica, and several Caribbean neighbours — that have introduced specific visa categories permitting remote workers to reside legally while earning income from clients outside the country.

Cuba’s visa framework is oriented around tourism, family reunification, study, diplomatic activity, and structured foreign investment. Most visitors enter on a tourist card (tarjeta de turismo) valid for 30 days and extendable once, yielding a maximum stay of approximately 90 days. Carrying out work — including remote work for foreign-based clients — on a tourist card has no legal standing as a basis for commercial activity in Cuba, and the country’s regulatory framework does not recognise this as a permissible arrangement.

For a foreign national to engage lawfully in any professional or commercial activity, an appropriate residency status is required. Foreigners classified as Temporary Residents, Real Estate Residents, or Humanitarian Residents must obtain prior authorisation before undertaking any professional or work-related activities. Even where such status is held, self-employment or business activity requires the further step of obtaining permanent residency before becoming eligible to participate in the private MSME sector.

A practical grey area exists that some location-independent workers inhabit: entering Cuba as a tourist, staying for short periods, and continuing to serve clients in their home country or elsewhere while spending locally. This is not a formally sanctioned arrangement and carries legal and regulatory risk. Moreover, Cuba’s constrained internet infrastructure, currency restrictions, and limited access to international banking make this an impractical long-term proposition regardless of any legal considerations.

Anyone seriously contemplating Cuba as a base for remote work should seek specialist legal advice and verify the current position with the Cuban immigration authority (Dirección de Inmigración y Extranjería) before making any commitments. The regulatory landscape is evolving rapidly, and the introduction of new visa categories — or further restrictions — is possible at any time. Consult the Cuban Ministry of Foreign Affairs website for the latest official information.

What taxes and social contributions apply to self-employed expats and business owners in Cuba?

Cuba’s tax system is administered by the Oficina Nacional de la Administración Tributaria (ONAT). The system encompasses a range of taxes and contributions that affect both businesses and individuals, and has undergone substantial reform since 2021, with further amendments introduced in 2024. Always verify current rates and thresholds directly with ONAT, as figures are subject to revision through annual budget legislation.

Personal income tax for self-employed workers: Individuals with a fiscal domicile in Cuba are subject to income tax on their worldwide income, with progressive rates beginning at 25% on net income between CUP 5,000 and CUP 10,000, and reaching 50% on income exceeding CUP 50,000 (based on the most recently available schedule — confirm current thresholds with ONAT). In 2024, a general tax regime was introduced for self-employed workers alongside a new 5% Labour Force Utilisation Tax. The annual tax return must be filed with the local municipal tax office within 60 days of the end of the tax year.

Corporate profit tax: Joint ventures, domestic and foreign investors, and parties to international economic association agreements are subject to a 15% tax rate applied to net taxable profit. This rate applies to foreign-invested business structures operating under the Foreign Investment Act. Foreign investors who are partners in joint ventures or parties to international economic association agreements are exempt from personal income tax on dividends or profits derived from the business.

Free zone incentives: Businesses established within Cuba’s free economic zones benefit from a reduced corporate tax rate of 12%, which is not collected during the first ten years of the company’s existence. This represents a meaningful advantage over the standard 15% profit tax and makes such zones particularly attractive for manufacturing, logistics, and export-oriented enterprises.

Social security contributions: Employers contribute 12% of gross salaries to the social security system and are required to deduct the 5% employee share from wages, remitting both amounts to INASS. The combined social security burden amounts to 17% of an employee’s gross monthly salary, and these obligations apply to state enterprises, cooperatives, and private-sector entities (MIPYMEs) alike. Unlike a traditional PAYE arrangement where contributions are automatically calculated, self-employed workers in Cuba must proactively manage and submit their own social security payments. The special social security regime applicable to self-employed workers and MSME members was adjusted in 2024.

Labour Force Utilisation Tax: A 5% Labour Force Utilisation Tax was introduced in 2024. A minimum wage was also established for remuneration purposes, and the former exemption from personal income tax on dividends received by MSME partners during their first year of operation was abolished.

Tax treaties: Cuba has signed double taxation agreements with approximately ten countries worldwide. If your country of origin has such a treaty with Cuba, this may have implications for your tax obligations. Consult a specialist tax adviser and check with ONAT for the current list of treaty partners.

Are there incentives, grants, or programmes to encourage expat entrepreneurs in Cuba?

Cuba does not operate a startup visa programme, entrepreneur visa, or dedicated grant scheme aimed at attracting foreign entrepreneurs in the manner of countries such as France or Portugal. Nevertheless, the foreign investment framework contains structural incentives that are relevant to expats contemplating larger-scale commercial activity.

Free Trade and Special Development Zones: Cuba maintains special economic zones, the most prominent of which is the Mariel Special Development Zone (Zona Especial de Desarrollo Mariel / ZEDM), situated west of Havana. Companies operating within Cuba’s free economic zones benefit from a corporate tax rate of 12%, which is not collected during the first decade of the company’s existence. By comparison with the standard 15% profit tax, this makes the zone particularly appealing for manufacturing, logistics, and export-focused businesses.

Investment protection guarantees: The primary legislation governing non-resident investor activity is the Law on Foreign Investment of 2014. Among its most significant provisions are the preservation of benefits granted to foreign investors throughout the agreed investment period, and protection of owners’ assets against legal claims by third parties or the extraterritorial application of other states’ laws.

Profit repatriation rights: The Cuban state guarantees foreign investors the unrestricted transfer abroad, in freely convertible currency and free of taxes or other levies, of dividends or profits generated by their investment. In the context of Cuba’s historically restrictive approach to currency and capital movements, this is a significant commitment.

National Institute of Non-State Economic Actors (INAENE): INAENE was created to oversee and support private economic activity, with a particular emphasis on decentralising the MSME approval process to the municipal level. It serves as the primary contact point for those navigating the private sector regulatory environment, though its central focus remains Cuban nationals and permanent residents.

Cuba’s legislative framework has advanced notably in 2024, reflecting a commitment to modernisation and adaptation to evolving economic and social conditions, with reforms spanning migration, labour, and private sector regulation. Expats should nevertheless bear in mind that the pace and direction of reform remain difficult to predict, and any incentive or framework must be confirmed for current applicability before being relied upon.

What are the practical challenges of being self-employed or running a business in Cuba?

Beyond the formal legal structure, Cuba presents a range of practical obstacles for foreign entrepreneurs and self-employed workers that are among the most pronounced of any country in the region. Entering this environment with a realistic understanding of these realities is essential.

Language and bureaucracy: All official processes in Cuba are conducted in Spanish. Unlike some other Spanish-speaking countries where legal forms or official guidance may be available in translation, Cuba’s bureaucratic documentation is overwhelmingly monolingual. Several legal provisions may differ substantially from what foreign business people are accustomed to — government agencies, for instance, hold expanded powers to oversee the activities of foreign companies — which is why many investors choose to engage specialist consultants before attempting to register a business on the island.

Local professional support: Engaging a Cuban notary (notario), lawyer, or licensed accountant is not merely advisable — it is effectively a prerequisite for most formal processes. Applications for company registration must be submitted by an authorised representative whose signature has been authenticated by a notary public or chamber of commerce. Identifying a suitably qualified Cuban professional with experience advising foreign clients is one of the most critical steps at the outset.

Banking access: Access to international banking services is severely curtailed in Cuba. A banking report issued within the previous three months by a bank within Cuba’s National Banking System is required as part of the company registration process. This means establishing a relationship with a Cuban bank — itself a challenging undertaking for non-residents. International card payments and wire transfers are subject to significant restrictions, and the currency environment — involving the Cuban peso (CUP) and an informal exchange rate — introduces further layers of complexity.

Accounting and financial reporting: All companies must maintain financial records in accordance with national accounting standards (Cuban GAAP), using a double-entry bookkeeping system with documentary support for every transaction. Quarterly financial statements are mandatory, and each transaction must be backed by relevant documentation such as invoices, receipts, and contracts. Annual financial statements certified by an independent auditor must be presented at year end, and larger companies with foreign participation are required to undergo an annual audit conducted by certified professionals.

Restricted sectors and evolving rules: The 2024 reforms introduced stricter criteria for business partnerships, expanded the list of activities prohibited to private operators, and shifted approval authority from the national to the local municipal level. The full impact of these changes on the private sector remains unclear, and the combined effect of additional restrictions and tightened residency requirements is expected to slow sector growth and create difficulties for business owners.

Economic instability: The cost of living in Cuba has risen sharply, to the point where even those earning above USD 100 per month struggle to cover basic necessities. At the start of 2025, a two-person household required approximately 45,000 CUP — equivalent to around USD 128 at the then-prevailing informal exchange rate — simply to meet essential costs. Income earned in CUP may not translate directly into purchasing power for goods or services priced in hard currency.

Internet and connectivity: Cuba has limited and unreliable internet connectivity compared to most countries in which digital businesses typically operate. This significantly affects the practical viability of any business model that depends on consistent high-speed internet access — including freelancing, remote consulting, and digital service provision.

Frequently asked questions

Can a foreign national become self-employed in Cuba without permanent residency?

In practice, no. To become a partner in a private MSME or engage formally in self-employment, foreign nationals must hold permanent residency in Cuba. Visitors and temporary residents have no legal entitlement to carry out commercial or professional activities without prior authorisation, and holders of tourist cards cannot legally operate as self-employed workers.

Can you be both employed and self-employed at the same time in Cuba?

Cuba’s regulatory framework does not actively encourage the combination of salaried employment and self-employed activity in the way that some systems — for example, France’s auto-entrepreneur regime alongside formal employment — do. In practice, any self-employed activity must be formally registered, and the interaction between an employment contract and self-employment obligations — particularly regarding tax and social security — should be clarified with ONAT and a qualified Cuban lawyer before any steps are taken.

How do you invoice foreign clients as a self-employed person in Cuba?

This is among the most complex practical questions facing anyone operating from Cuba. Access to international banking is severely restricted, and receiving payments from overseas into a Cuban bank account is far from straightforward. Cuba’s currency and payment restrictions mean that many self-employed workers and entrepreneurs rely on informal arrangements or intermediaries. No simple, widely accessible equivalent to the international payment platforms used elsewhere exists in Cuba. Specialist legal and financial advice is absolutely essential before undertaking any client work.

What happens to your business status if your residency status changes?

Private MSME partners who obtained partner status on the basis of permanent residency will retain that status irrespective of future migration rules concerning effective residency. However, new applications and partnership arrangements will be subject to the regulations in force at the time of application. If your residency status lapses or is altered, seek legal advice without delay to understand the consequences for any registered business activities.

Does Cuba have a tax treaty with my country?

Cuba has entered into double taxation agreements with approximately ten countries worldwide. The list is relatively brief compared to most nations and excludes many major economies. Check the current roster of treaty partners with ONAT or your home country’s tax authority, and consult a tax specialist experienced in both jurisdictions to understand how the treaty — or its absence — affects your obligations.

Are there restrictions on taking profits out of Cuba?

Under the Foreign Investment Act, specific guarantees apply to profit repatriation. The Cuban state guarantees foreign investors the unrestricted transfer abroad, in freely convertible currency and free of taxes or other charges, of dividends or profits generated by their investment. In practice, however, Cuba’s foreign exchange environment is complex, and the distance between legal guarantees and operational reality can be considerable. Obtain current specialist advice before assuming that access to profits will be unrestricted.

What is INAENE and how does it affect my business plans?

The National Institute of Non-State Economic Actors (INAENE) was established to regulate and support private economic activity in Cuba and has been actively promoting the decentralisation of the MSME approval process to the municipal level. INAENE is increasingly the central government body for anyone navigating private sector registration in Cuba. Consult the latest guidance directly through official Cuban government channels, as the transition from national to local-level approval remains in progress.

Is Cuba a realistic destination for a foreign entrepreneur in 2025?

Despite the sector’s growth, Cuba’s private economy continues to face deep structural obstacles and regulatory barriers that constrain its capacity to generate quality employment, and the ability of MSMEs to scale up remains limited. For most foreign entrepreneurs, Cuba does not represent a straightforward or low-risk operating environment. Those with compelling sector-specific rationale, the appropriate residency status, robust local partnerships, and access to experienced Cuban legal and financial advisers may identify genuine opportunities — but the burden of due diligence is substantial. Always consult the most recent guidance from Cuba’s Ministry of Foreign Affairs and ONAT before making any commitment.