Cuba Rental Income Guide 2026

Overview — Rental Income Tax in Cuba

Rental income from letting or leasing of residential and commercial property is chargeable to income tax in Cuba. The income is aggregated with the landlord's other income and taxed at the progressive IIT rates (5–50%). The first CUP 80,000 of total annual income (including rental income) is exempt. Landlords may deduct documented expenses directly related to the rental activity. Short-term tourist rentals (casas particulares) are a major part of Cuba's tourism economy and are subject to specific licencing requirements under Resolution 128/2020. Long-term residential leases are taxed on the same basis. The landlord must register as a taxpayer with ONAT and file quarterly self-assessment returns.

Tax Treatment — IIT Rates (5–50%)

Rental income is included in the landlord's total annual income and taxed as follows:

• Gross rental income received during the year is added to all other income
• The first CUP 80,000 of total annual income is exempt from tax
• Allowable expenses are deducted to arrive at net rental income
• Net income is taxed at the progressive IIT rates (5%, 10%, 15%, 20%, 25%, 30%, 35%, 40%, 45%, 50%)
• No separate withholding tax applies — rental income is declared by the landlord
• Tenants do not have withholding obligations

For example, a landlord earning CUP 240,000 in gross rental income with CUP 40,000 in allowable expenses has net rental income of CUP 200,000. After the CUP 80,000 exemption, CUP 120,000 is taxable at progressive rates, resulting in approximately CUP 12,500 in tax.

Allowable Deductions

Landlords may deduct the following expenses directly related to the rental activity:

• Property tax — annual residential property tax paid to ONAT
• Maintenance & repairs — costs of maintaining the property (not capital improvements)
• Utilities — water, electricity, gas if paid by the landlord (not recharged to tenant)
• Insurance — property insurance premiums
• Management fees — fees paid to property management companies or agents
• Agency fees — commissions paid to licenced rental agencies
• Depreciation — depreciation of the property and furnishings (under ONAT-approved rates)

All deductions must be supported by invoices or receipts. A portion of expenses may be apportioned if the property is used partly for personal occupation and partly for rental.

Short-Term Tourist Rentals (Casas Particulares)

Short-term tourist rentals, known as casas particulares, are a significant part of Cuba's tourism accommodation sector. Specific rules apply:

• Licence — owners must obtain a licencia de arrendamiento from the local Municipal Administration
• Registration — register with ONAT as an arrendador (landlord)
• Rates — rental rates are generally negotiated directly with tourists or through booking platforms
• Platform reporting — Airbnb and other platforms operating in Cuba may report rental income to ONAT
• Tax — income from tourist rentals is declared as ordinary income under the progressive IIT rates
• Minimum tax — some municipalities impose a minimum quarterly tax based on the estimated rental capacity of the property

The casa particular sector has grown substantially and is now a major source of income for Cuban families. Compliance with tax obligations has improved with increased enforcement by ONAT.

FAQs

Do I need to pay tax if I rent my property occasionally?

Yes, any rental income is taxable regardless of frequency. Even occasional short-term lets generate taxable income that must be declared and tax paid at the applicable IIT rate.

Can I deduct expenses if I rent through Airbnb?

Yes, the same expense deduction rules apply regardless of the booking channel. Airbnb service fees (typically 3% for hosts) are deductible as management fees.

What happens if I don't declare rental income?

Non-declaration of rental income is tax evasion. Penalties can include fines of up to 50% of the unpaid tax, interest, and potential suspension of the rental licence. ONAT has increased enforcement in tourist areas.

Disclaimer

This guide provides general information about Cuban rental income tax 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.