An advantageous tax reform for those who want to invest and a dollar payment mechanism that mitigates the currency risk for international investors. With these two important innovations, Cuba is hosting the World Congress of the Confederation of Italians in the World, chaired by Angelo Sollazzo, with the participation of 300 delegates including parliamentarians, mayors and entrepreneurs.
Far from being a symbolic presence, given that 47 branches of Italian companies and companies work permanently in Cuba, among which the Inalca group of Luigi Cremonini in the food sector, Farmavenda of Vittoria Comini, the Sistem Costruzioni of Emanuele Orsini in the wood, Daikiri by Claudio Cardini (who is also president of the Italian Entrepreneurs for Cuba) and in tourism, a sector in which Alpitour led by Gabriele Burgio plays an important role. The Cuba-Italy Entrepreneurial Committee, set up in 2011 to strengthen economic-commercial relations between the two countries, is also very active and is currently led by Elisabetta Pola.
Regulatory framework that facilitates joint ventures
Mirta Grande Averhoff presented her credentials as Cuban ambassador to Italy on February 22 last. You agreed, on the occasion of the event, to take stock of the situation on relations between Cuba and Italy.
«I want to immediately say – he begins – that Italian entrepreneurs, and all Italians, are welcome in Cuba: indeed, we have a special feeling with them that we want to renew and increase in mutual interest. Much has changed in our relations with foreign investors, not just the methods of payment in US dollars ». The regulatory framework is also changing, trying to smooth the administrative barriers to attract Italian investments. Some of these measures are already operational. “For example, the Cuban majority shareholding in the tourism, biotechnology and wholesale sector has been eliminated. Joint ventures between foreign and Cuban companies are now possible and wholly foreign-owned companies have full citizenship. There is no profit tax for eight years. Thereafter, you will pay a tax rate of only 15 percent. The first year of operation is exempt from sales and service tax. Later – Averhoff clarifies – you will pay 1% for the first and 5% for the second. The methods of foreign investment are exempt from the payment of taxes on sales, excise duties and services for goods that are raw materials for industrial production and for goods and services intended for export ».
Dynamic economy, infrastructure, skilled workforce
But the objectives of the Cuban government do not seem destined to stop there. “We are focusing a lot on commercial collaboration with Italy because you have the products we need, starting with the agro-industry. Today you are our second trading partner in Europe and my goal is to expand the collaboration, I would like you to become the first when I have finished my mandate. Cuba is a growing market with a strategic geographical position for trade in the region. We have basic infrastructures throughout the country, more than 20 airports, rail and road connections throughout the island, communications and energy on 95% of the territory, and we have important investment and development plans also based on a highly qualified workforce and a high level of public safety and human development indices ”. There are also protocols and platforms already defined and functioning to streamline bureaucratic practices and start financing projects.