Friday, 28 March 2014 14:58
The International Business Times reports that:
"Cuba is about to open itself up to foreign investment for the first time in half a century as part of a slew of reforms promoted by President Raúl Castro. The legislation, which will be voted on in parliament on Saturday, touches on all sectors of the economy except for two: education and health care."
These new partnerships will enjoy a special fiscal policy, which exempts foreign partners from paying income taxes. Mixed companies will also be exempt from paying taxes for eight years after their inception.
However, it is still unclear how effective the bill will be in enticing foreign investors. Jason Poblete, a Washington, D.C.-based attorney and partner in law firm Poblete Tamargo who works with U.S. clients on claims against Cuba, told CNBC the country still lacks two key factors to investing: the rule of law, and protection of property rights. You need a stable legal system that protects investor rights and has a path to resolve disputes,” he said.
In addition, U.S. law will make it extremely difficult for these reforms, if ever implemented, to succeed.
You can read the entire story here.