Cuba Tax Residency Guide 2026

Overview — Tax Residency in Cuba

Tax residency is the foundational concept determining the scope of taxation in Cuba. Resident individuals are taxed on their worldwide income; non-residents are taxed only on Cuban-source income. Residency is defined under Law 113/2012 (Ley del Sistema Tributario). For individuals, the test is primarily based on physical presence (183 days) or having a permanent home in Cuba. For companies, residency follows incorporation or place of effective management. The Oficina Nacional de Administracion Tributaria (ONAT) applies these rules and may challenge arrangements designed to artificially avoid residency status.

Individual Residency — 183-Day Rule

An individual is considered a tax resident of Cuba if they meet any of the following conditions:

• Physical presence — present in Cuba for 183 days or more in any 12-month period (including a calendar year)
• Permanent home — has a permanent home available in Cuba (whether owned or rented)
• Habitual abode — has a habitual place of abode in Cuba and is present for any period during the year
• Economic interests — has their centre of economic interests (principal business, employment, or investment activities) in Cuba

Day counting includes both partial days and full days. A person who enters Cuba on day 1 and leaves on day 183 counts as present for 183 days. Expats working in Cuba should track their presence carefully. The 183-day test applies to any consecutive 12-month period, not just the calendar year.

Corporate Residency

A company is tax resident in Cuba if either of the following conditions is met:

• Incorporation — the company is incorporated or registered under Cuban law
• Effective management — the place of effective management (POEM) of the company is in Cuba

Foreign companies operating through a branch or permanent establishment in Cuba are taxed on Cuban-source income only, not worldwide income. However, if a foreign company's central management and control is exercised in Cuba, it may be deemed a Cuban tax resident and subject to tax on worldwide income at the standard CIT rate. Joint ventures (Empresas Mixtas) incorporated in Cuba are treated as Cuban tax residents.

Source Rules — Cuban-Source Income

Non-residents are taxed only on income derived from sources in Cuba. Source rules under Law 113/2012 include:

• Employment income — sourced where the employment duties are performed (physical location in Cuba)
• Business income — sourced where the business activities are carried out (or through a permanent establishment in Cuba)
• Property income — sourced where the property is located (rental income from Cuban property, gains on Cuban real estate)
• Dividends — sourced where the paying company is resident
• Interest — sourced where the payer is resident (including Cuban state banks)
• Royalties — sourced where the intellectual property is used

Double Tax Treaties (DTTs)

Cuba has a limited double tax treaty network. As of 2026, comprehensive DTTs are in force with:

• Spain — Cuba's most important treaty, covering investment, business profits, and employment income
• China — covering trade and investment between the two countries
• Russia — comprehensive treaty covering all income types
• Vietnam — comprehensive treaty
• Venezuela — limited treaty covering specific income types
• Iran — limited treaty

Treaties generally reduce withholding tax rates on dividends, interest, and royalties paid to residents of treaty countries. Cuba generally follows the OECD Model Tax Convention for its treaties. To claim treaty benefits, the recipient must provide a Certificate of Tax Residency from their home country and submit a treaty relief application to ONAT. Cuba has not signed the OECD Multilateral Instrument (MLI) and is not a member of the BEPS Inclusive Framework.

FAQs

If I work remotely for a foreign company while in Cuba, am I taxable?

If you are physically present in Cuba for 183+ days, you are a tax resident and must declare your worldwide income, including salary from foreign employment. If present for fewer than 183 days, only Cuban-source income is taxable.

Can I be resident in Cuba and another country at the same time?

Yes, dual residency is possible. The applicable double tax treaty (if one exists between Cuba and the other country) will contain a tie-breaker clause to determine which country has primary taxing rights.

How do I prove I am not a Cuban tax resident?

Maintain records of travel dates, passport entry/exit stamps, employment contracts, rental agreements, and tax returns from your home country. A Certificate of Tax Residency from your home country is strong evidence for ONAT purposes.

Disclaimer

This guide provides general information about Cuban tax residency for the 2026 tax year. Tax laws and treaty provisions 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.