Cuba Allows Expatriates to Own Businesses, but Experts Say More Changes Needed

The Cuban government's new regulations aim to attract foreign capital, but some say the measures don't go far enough.

Mar. 18, 2026 at 12:55am

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The Cuban government announced new regulations that will allow Cubans living abroad to own and invest in private companies on the island, potentially bringing in much-needed foreign capital. However, business and legal experts say the measures are not enough to significantly improve Cuba's struggling economy, which has been crippled by U.S. sanctions and the COVID-19 pandemic.

Why it matters

The Cuban government is facing a severe economic crisis and is under pressure to make reforms to attract foreign investment and ease the impact of U.S. sanctions. While the new regulations are a step in the right direction, experts say more profound changes are needed to Cuba's regulatory framework, legal system, and currency stability to truly encourage foreign investment and economic growth.

The details

The new regulations will allow Cuban expatriates to invest in or own private companies, invest in large infrastructure projects, and conduct banking on the island. However, the details of the measures are still unclear and could take months to implement. Experts also say the measures would likely run afoul of U.S. law, as the U.S. embargo on Cuba requires licenses from the Treasury Department for any American, including Cuban Americans, to operate in Cuba.

  • The Cuban government announced the new regulations this week.
  • The measures are expected to take months to implement.

The players

Diana Sainz

A Cuban American who owns two boutique hotels with restaurants in Havana, three small markets, and a production center to sell frozen prepared meals.

Andrea Gallina

Diana Sainz's husband, who has invested in businesses in Cuba.

Óscar Pérez-Oliva Fraga

The Cuban deputy prime minister who announced the new economic policy.

Robert L. Muse

A lawyer in Washington who specializes in business in Cuba.

Pedro A. Freyre

A Cuban American lawyer in Miami and an expert on Cuba's regulatory landscape.

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What they’re saying

“I think the most important message is that these measures aren't enough. They're a step in the right direction, because any economic reopening is positive, but they're not enough.”

— Diana Sainz

“This is a day late and a peso short.”

— Pedro A. Freyre, Cuban American lawyer

“Why would anyone invest in Cuba knowing that this is a regime that stole businesses and property from people, and there's a rigged legal system? There's been no recourse to challenge anything.”

— Representative Nicole Malliotakis, Republican from New York

“Cuba has an economy that doesn't work. What they announced yesterday is not dramatic enough. It's not going to fix it.”

— Senator Marco Rubio, Cuban American

“To have a modern market economy, you need a certain amount of freedoms, which they are never willing to give their own citizens, foreign investors and certainly never to Cuban expats.”

— Joe Garcia, Former Democratic member of Congress from South Florida

What’s next

The Cuban government will need to provide more details on the implementation of the new regulations and address concerns from experts and the international community about the country's legal and regulatory framework in order to attract significant foreign investment.

The takeaway

While the Cuban government's move to allow expatriates to own businesses is a positive step, experts say much more substantial economic reforms are needed to truly revive Cuba's struggling economy and attract the foreign capital and investment it desperately needs.