Cuba Property Tax Guide 2026

Overview — Property Taxation in Cuba

Cuba's property tax system is structured around the Impuesto sobre la Propiedad de Viviendas (Residential Property Tax), which is an annual tax based on the value of the property calculated per square metre. The tax affects owners of residential real estate, with rates determined by the location (municipality), the type of property (house, apartment), and the assessed value per square metre. The tax is relatively modest for most owner-occupied homes but can be significant for high-value properties. The transfer tax of 4% applies when property is sold or transferred. Agricultural land is subject to a separate land tax (Impuesto sobre la Propiedad de Terrenos). The Ministry of Finance determines valuation bands and rates annually.

Residential Property Tax — Annual Levy

The annual residential property tax is calculated based on the value per square metre of the property. The tax uses a progressive rate structure with the following general bands (rates vary by municipality):

• Up to CUP 3,000/sq m — 0.5% of assessed value
• CUP 3,001–6,000/sq m — 1.0% of assessed value
• CUP 6,001–10,000/sq m — 1.5% of assessed value
• Above CUP 10,000/sq m — 2.0% of assessed value

The assessed value is determined by ONAT based on location, construction quality, age, and amenities. Properties in higher-value municipalities (Havana, Varadero, Santiago de Cuba) are assessed at higher rates than rural areas. The tax is payable annually, typically by 31 March. A 10% discount is available for early payment. Owner-occupied primary residences may qualify for a reduced rate or exemption for low-value properties.

Transfer Tax — 4%

A transfer tax (Impuesto sobre la Transmision de Bienes) of 4% is levied on the transfer of real estate property. Key features:

• Rate — 4% of the higher of the sale price or the assessed value
• Payer — the seller (vendor) is generally liable for the transfer tax
• Due date — payable at the time of transfer, before registration of the new title
• Exemptions — transfers between spouses, transfers due to inheritance, and transfers of primary residences in certain circumstances
• Registration — proof of payment is required before the property registry (Registro de la Propiedad) will register the transfer

The transfer tax is a significant transaction cost in Cuban real estate transactions and is in addition to notary fees, registration fees, and legal costs which typically add 2–5% to the transaction.

Land Tax

Owners of land (including agricultural and undeveloped plots) are subject to the Impuesto sobre la Propiedad de Terrenos (Land Tax). Rates vary depending on the use and location:

• Agricultural land — taxed based on productive capacity and crop type, typically CUP 100–500 per hectare per year
• Urban undeveloped land — taxed at 1–2% of assessed land value (higher rates to discourage land banking)
• Industrial land — taxed based on area and location, typically CUP 50–200 per square metre per year
• Mariel SEZ — land within the Mariel Special Development Zone may qualify for reduced land tax rates

Registration & Compliance

Property owners must register their properties with ONAT and the Property Registry (Registro de la Propiedad). Compliance requirements include:

• Registering the property with ONAT within 30 days of acquisition
• Paying annual property tax by 31 March each year
• Reporting any changes in property ownership, use, or value
• Paying transfer tax at the time of any disposal
• Maintaining records of property transactions and tax payments

Non-payment of property tax can result in penalties, interest, and ultimately forced sale of the property to recover the unpaid tax.

FAQs

Do I pay property tax if I own a house in Cuba but live abroad?

Yes, property tax is payable regardless of the owner's residency status. Non-resident owners should appoint a local representative to handle tax payments. The 4% transfer tax also applies on any sale.

How is property value assessed?

ONAT assesses property values based on location, construction quality, size, age, and amenities. The assessment may not always reflect market values, which have been rising due to private sector growth. Owners may challenge assessments through ONAT's appeals process.

Are foreign buyers subject to any additional taxes?

Foreign buyers face the same property tax rates as Cuban nationals. However, foreign ownership of residential property is restricted and requires special authorisation from the Cuban government, except for returning Cuban-Americans who have more liberal property rights under the 2014 reforms.

Disclaimer

This guide provides general information about Cuban property tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Cuban property lawyer or tax advisor for advice specific to your situation. InvestmentKit does not provide tax advice.