Cuba (CU)
Cuba is a unique socialist island nation of 11 million people in the Caribbean — a country of vintage American cars, world-famous cigars, Havana salsa, colonial architecture, and extraordinary natural beauty.
Capital: Havana
Region: Americas
Language: Spanish
Currency: CUP ($)
Cost of living: Very affordable (index 20)
Emergency: 106
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Business Setup
Start a business or go freelance in Cuba.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 1. Determine if your activity falls within the 127 approved TCP categories. Check the full list published by ONEI or Gaceta Oficial. Common categories: gastronomía (food service), transporte (transport), arrendador (room rental), trabajo doméstico, trabajo por contrato, instructor/tutor, and many more.
- 2 2. Apply for your TCP licence at the Gobierno Municipal (local government office) in your area of operation. Bring your carné de identidad (Cuban ID — required even for long-term foreign residents who have obtained Cuban residency) or passport.
- 3 3. Register with ONAT (Oficina Nacional de Administración Tributaria) to receive your tax registration number (NIT — Número de Identificación Tributaria). Required before you can legally operate.
- 4 4. Pay the required Seguridad Social contribution: 5% of monthly income minimum declared (minimum base set by MTSS). Quarterly payments to ONAT.
- 5 5. Declare income and pay income tax annually by April 30. Income above the exempt threshold is taxed progressively (15%–50%). Keep records of income and business expenses.
- 6 6. If operating a paladar or casa particular: additional licensing from local government, health inspection (MINSAP), and registration with the Registro Mercantil may be required.
- 7 7. Renew your TCP licence annually and update any changes to your declared activity or address.
Tax registration
ONAT — Oficina Nacional de Administración Tributaria. Visit the local ONAT office in your municipality. Online services limited (onat.gob.cu). Bring passport/ID and TCP licence.
VAT threshold
10% Impuesto sobre las Ventas (Sales Tax) applies to most goods and services sold by TCP operators. Basic necessity items 5%. No small-business VAT exemption equivalent to European thresholds.
Invoicing
TCP operators must issue a nota de entrega (delivery note/receipt) for services. Since 2022, electronic invoicing systems (factura electrónica) are being rolled out for larger TCP operators and MIPYMES. Invoices must state: seller NIT, date, description of goods/services, quantity, unit price, total, and applicable tax.
Social security
TCP workers pay 5% of income to Seguridad Social (MTSS). This entitles them to: old-age pension (at 65M/60F), disability pension, and maternity benefits. Payment is quarterly through ONAT. Failure to maintain contributions breaks the contributory period for pension eligibility.
💡 Important distinction: a MIPYME can employ workers and has a separate legal entity. A TCP is personal — the licence cannot be transferred and all liability is personal. Since 2021, many former TCP operators have converted to MIPYMES to access more flexible operating rules and the ability to hire employees. Foreign nationals generally cannot hold TCP licences without Cuban residency.
🏢 Business Structures
TCP · Trabajador por Cuenta Propia
Self-employed / Sole Trader
None
Min. capital
2–6 weeks for license approval from Gobierno Municipal
Setup time
Liability: Unlimited personal liability
Setup cost: License fee: 300–500 CUP depending on activity category
Best for: Individual artisans, repairers, food sellers (paladares), taxi drivers, tutors, hairdressers, accountants, and 127 approved activity categories. The most common business form in Cuba.
MIPYME Privada · Micro, Pequeña y Mediana Empresa Privada
Private Small/Medium Enterprise
No minimum specified in law but practical minimum varies by sector
Min. capital
30–90 days for Ministry approval and legal registration
Setup time
Liability: Limited liability (separate legal entity from owners)
Setup cost: Registration fees: approximately 1,500–5,000 CUP plus legal costs
Best for: Private businesses with multiple employees, larger operations in food service, manufacturing, IT, construction. Legalized in August 2021 under Decree-Law 46. Can employ workers and export/import (with restrictions).
MIPYME Estatal · Micro, Pequeña y Mediana Empresa Estatal
State Small/Medium Enterprise
State-funded
Min. capital
Varies by ministry approval process
Setup time
Liability: State liability
Setup cost: State-funded; approved by ministry
Best for: Spin-offs from state enterprises seeking operational independence. Not open to foreign nationals. Information for context only.
Empresa Mixta / Joint Venture · Empresa Mixta (Joint Venture con inversión extranjera)
Joint Venture with Foreign Investment
Negotiated case-by-case; typically USD 50,000+
Min. capital
6–24 months for approval through MINCEX (Ministry of Foreign Trade and Investment)
Setup time
Liability: Defined in joint venture agreement
Setup cost: Legal and registration costs: USD 5,000–50,000+; requires Council of State approval for major investments
Best for: Foreign companies entering Cuban market through partnership with Cuban state entity. Governed by Law 118 (Foreign Investment Act). Tourism, energy, real estate, biotechnology, agriculture are priority sectors.
Cooperativa No Agropecuaria · Cooperativa No Agropecuaria (CNA)
Non-Agricultural Cooperative
Member contributions
Min. capital
30–60 days for approval
Setup time
Liability: Collective liability of members
Setup cost: Application to MINCIN; member buy-in varies
Best for: Collective ventures in construction, transport, gastronomy, professional services. Members share profits and governance equally.
Business Setup
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