The Cuban government is set to revise the reference values for housing, increasing them to five times the figures established in 2017. This was announced by Prime Minister Manuel Marrero Cruz during the fourth ordinary session of the National Assembly. According to the communist leader, this initiative aims to align official pricing with the actual market values, addressing high levels of tax evasion and payment delinquencies associated with these transactions.
A prominent feature of this new policy is the classification of properties by zones, facilitating a more accurate adjustment of values based on their location. Additionally, personal income taxes related to the buying, inheriting, and donating of properties will now be calculated and paid based on the true value of the transactions, promoting increased transparency in the process.
One major change is the requirement for full payment of the property before the notarization and registration in the property registry. This stipulation is intended to ensure compliance with fiscal and legal obligations. Through this measure, the regime aims to modernize its real estate management system, although it may present new challenges for citizens amidst an already complicated economic situation.
Housing is a crucial issue in daily Cuban life, particularly since the government fails to prioritize it adequately while continuing to construct hotels across the country.
Understanding Cuba's New Property Pricing Policy
Why is the Cuban government increasing housing reference prices?
The government is raising these prices to better reflect actual market values and to tackle issues like tax evasion and payment delinquencies in property transactions.
What changes are included in the new housing policy?
The policy introduces property classification by zones, calculation of taxes based on actual transaction values, and requires full payment before notarization and registration.
How might this affect Cuban citizens?
While aiming to modernize real estate management, these changes could pose new challenges for citizens given the already complex economic environment in Cuba.