Reinier Gutiérrez, a Cuban-American entrepreneur based in Coconut Grove, Miami, remains keen on pursuing real estate opportunities in Cuba despite the challenges posed by a recent Cuban citizenship law. This legislation mandates that individuals born in Cuba must enter the country with a Cuban passport, preventing them from using their American citizenship to seek legal or consular aid.
The law, identified as Law 172/2024, received the green light from the National Assembly in July 2024 and was published in the Official Gazette on May 5 of this year. It is set to take effect in November 2026.
The legislation is straightforward: "Cuban citizens, while on national territory, are governed by this status under the terms established in this law and cannot invoke foreign citizenship."
Gutiérrez acknowledged his concerns regarding these new stipulations, particularly the expense of a Cuban passport. "I am certain these are desperate measures, given that each Cuban passport costs over $200," he expressed to CBS Miami in Spanish.
Optimism Amidst Uncertainty
Despite the hurdles, Gutiérrez remains hopeful, referencing statements by President Donald Trump, who hinted at forthcoming U.S. actions concerning Cuba, remarking, "We'll do something with Cuba very soon."
However, not everyone in the Cuban-American community shares his outlook.
Andy Gómez, former director of the Institute for Cuban and Cuban-American Studies at the University of Miami, advised Cuban-Americans to carefully consider investments under the current regime. "Why would I want to be in Cuba with a Cuban passport? I'm subject to Cuban laws. What judicial system exists in Cuba in case a problem arises?" he inquired.
Investment Skepticism
Gómez highlighted that interest among Cuban-Americans in investing surged after the regime's announcement that Cubans living abroad could own private businesses on the island, formalized through Decree-Law 117/2026, establishing a "special migratory status for Investors and Business."
Nonetheless, he questioned whether Cuba possesses the basic conditions to support such investments. "The logistics, the infrastructure to do business in Cuba, simply aren't there. Who can you turn to if there's an issue? Labor rights? Can I hire whoever I want?" he asserted.
Gómez also warned about the lack of U.S. consular protection. Cuban-Americans entering Cuba as Cuban citizens will not be able to seek assistance from the U.S. Embassy in Havana if they encounter legal or political issues during their stay.
Legal and Economic Challenges
The situation is further complicated by Washington's tightening stance towards Havana. On May 7, Secretary of State Marco Rubio announced direct sanctions against GAESA, the military conglomerate controlling 40% to 70% of Cuba's formal economy, adding legal risks for any Cuban-American considering business ventures on the island.
The Cuban real estate market itself presents unique obstacles. Direct property purchases are limited to citizens with permanent residency on the island, and the dictatorship grapples with a housing deficit exceeding 900,000 homes, with just 0.3% of the demand met in 2025.
The new law will be implemented in November, and only then will the legal process become available for a Cuban-American to formally renounce Cuban citizenship and enter the island solely with a U.S. passport.
Key Questions About Investing in Cuba
What are the implications of the new Cuban citizenship law for Cuban-Americans?
The new law requires Cuban-Americans born in Cuba to enter the country with a Cuban passport, limiting their ability to leverage American citizenship for legal protection while in Cuba.
How does the current U.S. policy affect business prospects in Cuba?
The U.S. has imposed sanctions on entities like GAESA, complicating business opportunities for Cuban-Americans by increasing legal risks associated with investments in Cuba.
Can Cuban-Americans seek help from the U.S. Embassy in Cuba?
No, Cuban-Americans who enter Cuba with a Cuban passport cannot seek assistance from the U.S. Embassy in Havana if they encounter legal or political issues.