Cuba Investment Income Guide 2026

Overview — Investment Income Taxation

Cuba's investment landscape is constrained by the state-controlled economy. Investment options for individuals are limited primarily to state bank savings accounts, government bonds, and limited private enterprise participation. The tax treatment of investment income is governed by Law 113/2012. Withholding taxes apply to certain passive income streams, while other investment returns are included in the taxpayer's annual income declaration. The financial system is dominated by state-owned banks including Banco Central de Cuba and Banco de Credito y Comercio. Foreign investment is permitted through joint ventures and the Mariel Special Development Zone.

Dividends — 15% WHT (Final for Individuals)

Dividends and profit distributions paid by Cuban enterprises are subject to a 15% withholding tax. Key features:

• Rate — 15% on gross dividends paid to shareholders
• Final tax for individuals — resident individuals pay no further tax on dividend income
• Companies — dividend withholding tax is creditable against CIT for corporate shareholders
• Non-residents — 15% rate applies, potentially reduced under applicable double tax treaties
• Mariel SEZ — profit distributions from Mariel Zone enterprises may be exempt from withholding tax
• State enterprises — profits of state-owned enterprises are not distributed as dividends but are remitted to the state budget

The 15% tax is deducted at source by the paying entity and remitted to ONAT. Shareholders receive a withholding certificate as evidence of tax paid.

Interest Income

Interest income in Cuba is generally treated as ordinary income and taxed at the individual's marginal IIT rate. Key categories:

• Bank deposit interest — interest on savings accounts at state banks is included in taxable income and taxed at IIT rates
• Government bonds — interest on Cuban state bonds is generally exempt from income tax
• Corporate bonds — interest from private enterprise bonds is taxable at IIT/CIT rates
• Foreign currency deposits — interest earned on foreign currency accounts (USD, EUR) at Cuban banks is taxable

Interest income is reported in the annual tax return. There is generally no withholding tax on interest paid to residents, though banks may report interest payments to ONAT. For non-residents, interest from Cuban sources is subject to 10% withholding tax (reduced under applicable treaties).

Capital Gains — Included in Ordinary Income

As covered in the Capital Gains Guide, all capital gains are aggregated with ordinary income and taxed at progressive IIT rates (5–50%) for individuals or CIT rates for companies. There is no preferential treatment for investment-related gains. Gains from the disposal of shares in Cuban enterprises, real estate, and other capital assets are all taxed as ordinary income. Losses may be offset against gains, and unrelieved losses may be carried forward.

Foreign Investment Income

Cuban tax residents are subject to tax on their worldwide income, including investment income from foreign sources. Foreign dividends, interest, and capital gains must be declared in the annual tax return. Foreign tax credits may be available under applicable double tax treaties. However, Cuba's limited treaty network means most foreign investment income is fully taxable in Cuba without foreign tax relief. Practical considerations for foreign investment income include:

• Foreign dividends — declared as income and taxed at IIT rates (credit for foreign WHT under treaty)
• Foreign interest — declared as ordinary income
• Foreign capital gains — declared as ordinary income
• Exchange control restrictions — repatriation of funds may be subject to Cuban exchange control regulations

FAQs

Are dividends from cooperatives taxable?

Yes, profit distributions (excedentes) from cooperatives to their members are subject to the 15% withholding tax on profit distributions, similar to dividends from companies.

Is interest from foreign bank accounts taxable if I live in Cuba?

Yes, as a Cuban tax resident, you are taxed on worldwide income. Interest earned on foreign bank accounts must be declared in your annual Cuban tax return. Foreign tax credits may apply.

Can non-residents invest in Cuban stocks?

Foreign investment in Cuban enterprises is primarily through joint ventures and international economic associations. There is no developed stock market in Cuba. Non-residents investing through these vehicles are subject to the 15% dividend withholding tax.

Disclaimer

This guide provides general information about Cuban investment income taxation 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.