What the law establishes
Ley 118 defines the recognised forms of foreign investment. The best known are the joint venture, in which a foreign investor and a Cuban partner form a shared company, and the international economic-association contract, a contractual partnership without forming a new company. The law also contemplates wholly foreign-capital enterprises in defined circumstances. Each form is subject to authorisation, and the Ministry of Foreign Trade and Foreign Investment (MINCEX) is central to the process.
Crucially for property, the law works with the reality of state ownership. Rather than selling buildings, the Cuban side commonly contributes the use of land or premises into the venture, while the foreign side brings capital and know-how. The right you obtain is generally a right to use for the project, not a private freehold.
The Cartera de Oportunidades
Ley 118 operates alongside the Cartera de Oportunidades, the annual portfolio of opportunities that signals where the state is inviting investment. It functions as an official menu of sectors and projects, and it helps investors understand where premises and land use are likely to be made available. Reading it is a sensible early step, because it reflects government priorities rather than open-market demand.
Projects that touch logistics or manufacturing frequently point toward the Mariel Special Development Zone, which has its own regime and one-stop office layered on top of the national framework.
Protections, limits and a disclaimer
Ley 118 offers certain protections to authorised investors, and disputes are often steered toward arbitration rather than ordinary courts. That said, the framework is administered by the state, approvals are discretionary, and terms are negotiated case by case.
For US-connected parties, none of this displaces OFAC restrictions under 31 CFR Part 515 or Helms-Burton Title III liability over confiscated property. This page is not legal or investment advice; the law and its regulations evolve, so verify current requirements with qualified counsel before relying on any point here.