Transcript Cuba` s Presentation

Investment Opportunities in Latin America
Official name: Republic of Cuba
Capital: La Habana (Havana)
Official language: Spanish
National Day: January 1st
Surface: 110,992 km2
Life expectancy at birth (years): 78
Infant mortality rate (under 1 year): 4,5 in 1000
Public Health System: Free for everybody, with high quality
Total adult literacy rate (%): 98
Education System: Free for everybody, from primary school to the university
Havana city
Republic of Cuba
Cuban main achievements in 2010:
GDP grow rate: 2,1%
Goods and Services Trade:
• Reduction of the deficit in the Balance of Trade
• 41,5% increase in exports
• 3,9% increase in imports
• The export of services continues leading exports.
• The tourism grow 2,9% in visitors and 5,5% in incomes in relation with 2009
Cuba 2011: Main projections and immediate goals:
GDP grow rate: 3,1%
Tourism grow rate: 29,5% in visitors and 10% in incomes
Investments grow: 25,9%,
Priorities:
 Increase the exports and reduce the imports in a short term.
 Accelerate the substitution of imports in industrial and agricultural sectors
 Continue moving forward updating the Cuban economic system based on:
 Economic efficiency
 Promotion of exports
 Substitution of imports
 Reduction of the external deficit of the Balance of Trade
Cuban Foreign Trade:
 To increase the incomes coming from exports of goods and services
 To diversify the foreign markets
 To increase the aggregate value, technology and quality of the products
and services to be exported
 To develop the exports of services, specially in health sector
 To promote the exports of pharmaceutical, biotechnological, metalmechanic and sea products.
Cuban foreign trade by geographic areas:
Africa 4
Middle East & Asia
20
America 52
America
Europe 24
Europe
Middle East & Asia
Africa
Main Cuban economic partners in 2010:
Venezuela
China
Canada
Spain
Brazil
Netherlands
Mexico
Germany
Italy
France
Russia
Foreign Investment in Cuba:
The new foreign investments in Cuba must be directed to:
 Promote export of goods and services
 Substitution of imports by the modernization of the industry
 Introduce new and high technology
 Increase the efficiency
 Provide long term funding
Modalities of Foreign Investment in Cuba:
LAW NUMBER 77: FOREIGN INVESTMENT ACT
Joint venture: Cuban commercial company which adopts the form of a
nominal share corporation, in which one or more national investors and
one or more foreign investors participate.
International economic association contract: Pact or agreement
among one or more national investors and one or more foreign investors,
for the realization of actions fitting an international economic association,
even without the establishment of a legal entity distinct from each of the
parties.
Resolution 5290/2004 – Regarding cooperative production and
service contracts
 Cooperative Production of Goods or the Rendering of Services
 Production or Service Management Contract
 Hotel Management Contracts
Incentives to the Foreign Investors in Cuba
The State guarantees the foreign investor the free transference abroad, in freely
convertible currency, free from taxes or any fee related to net profits or dividends
obtained as a result of the investment.
Income taxes are levied at a rate of thirty percent (30%) of net taxable income. In
cases considered in the nation's interest, the Executive Committee of the Council
of Ministers can exempt all or part of the tax on net income that is reinvested in
the country.
It’s possible to apply other incentives according to the special characteristics of
each project.
Tax covering the utilization of the labour force and
contributions to social security:
 For utilization of the labour force, a discount is granted in the current
taxation rate, to a rate of eleven percent (11%).
 Social security contributions are covered by a taxation rate of fourteen
percent (14%).
Investment opportunities in Cuba by sectors:
Tourism
Oil prospection and extraction
Energy (renewable)
Mining
Packing
Export of Cuban goods and services:
Agro industry: biological pesticides, tobacco, fresh and processed fruits,
run, citric and honey
Pharmaceutical and biotechnological industry: antibiotics, vaccines,
monoclonal antibodies, veterinary use medicaments, equipments for
neurological and rehabilitation use.
Informatics technology: Software development, informatics integrated
solutions, automation services, technical assistance.
Export of Cuban goods and services:
Foods: Lobster, shrimp and other seafood, fruit juices, concentrated fruit juices,
soft drinks, water in bottles
Cultural goods and services
Medicine: Integrated health services,
medical care to patients in Cuba
Others: Educational and
sport services
5, Sofocleous str., Filothei, Athens
152 37 Greece
Tel: (30) 210 68 55 550
Fax: (30) 210 68 42 807
E-mail: [email protected]
http://www.cubadiplomatica.cu/grecia
Embassy of Cuba
in Athens
Thank you very much