Cuba Capital Gains Tax Guide 2026

Overview — CGT Treatment in Cuba

Under Law 113/2012, capital gains in Cuba are treated as ordinary income rather than being subject to a separate capital gains tax. This means the gain from disposing of an asset is added to the taxpayer's other income and taxed at their marginal rate. For individuals, this means gains can be taxed at up to 50% under the highest IIT bracket. For companies, gains are included in taxable profit and taxed at the standard CIT rate. The disposal of an asset includes sale, exchange, gift, or any other transfer of ownership. The chargeable gain is calculated as the proceeds of disposal minus the acquisition cost and any incidental costs of acquisition and disposal.

Individuals — Taxed at IIT Rates (5–50%)

For individual taxpayers, capital gains are added to other income sources (salary, business income, rental income, etc.) and taxed under the progressive IIT brackets. Key points:

• Gains are included in the annual income tax return
• The first CUP 80,000 of total annual income (including gains) is exempt
• Gains above the threshold are taxed at marginal rates up to 50%
• No distinction between short-term and long-term holdings
• Losses on asset disposals may be offset against gains in the same year
• Unrelieved losses may be carried forward for up to 3 years (individuals)

This treatment means high-income individuals face a significant tax burden on large capital gains. For example, a gain of CUP 500,000 realised by an individual with other income of CUP 300,000 would push total income to CUP 800,000, with a marginal rate of 40% on a substantial portion of the gain.

Companies — Taxed at CIT Rates

For companies, capital gains are included in ordinary taxable profits and subject to the standard CIT rate. Key features:

• Gains are included in the annual corporate tax return
• Taxed at the applicable CIT rate (35% standard, 25% joint ventures/priority sectors, 15% agriculture)
• Capital losses may be offset against chargeable gains in the same year
• Unrelieved losses may be carried forward for up to 5 years
• Rollover relief is available for replacement of business assets in certain circumstances
• Gains on disposal of fixed assets may be subject to specific depreciation recapture rules

Exemptions & Reliefs

Certain capital gains are exempt from tax in Cuba:

• Principal residence — gain on disposal of an individual's primary home is exempt, provided the proceeds are reinvested in another principal residence within 12 months
• Personal use assets — gains on disposal of personal effects and household goods are generally exempt below CUP 50,000
• Inheritance — assets received through inheritance are not subject to CGT at the point of receipt (cost base carries over)
• Government securities — gains on disposal of Cuban government bonds are exempt
• Mariel SEZ — businesses in the Mariel Special Development Zone may benefit from CGT exemptions under their investment contracts

FAQs

How is the gain calculated on property disposal?

The gain is the difference between the sale price and the acquisition cost (including documented improvement costs). For properties acquired before the 2012 tax reform, special transitional valuation rules apply. The 4% transfer tax (paid by the seller) is deductible as an incidental cost of disposal.

Can I offset business losses against capital gains?

Yes, for both individuals and companies, capital gains are treated as ordinary income so business losses can be offset against gains. Conversely, capital losses can be offset against ordinary business income.

Are gains on cryptocurrency taxable?

Yes, gains from cryptocurrency trading are treated as ordinary income and subject to IIT or CIT as applicable. See the Cuba Crypto Tax Guide for detailed guidance.

Disclaimer

This guide provides general information about Cuban capital gains tax treatment for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Cuban tax advisor or the Oficina Nacional de Administracion Tributaria for advice specific to your situation. InvestmentKit does not provide tax advice.