Buying Property and Real Estate in Cuba
Rules and Regulations
Buying property is a little more complicate than what you might be used because there are certain specific rules which presently exists, for those of you looking to invest and buy property in Cuba. The key rules that you really need to be aware of is under Chapter 6, which details the ‘Investments in Real Estate’ rules that come under Article 17.1
Rule 17.1 states that
In conformity with the modalities established in this Act, investments in real estate shall be authorized and the ownership of the real state or other property rights shall be obtained.
The investments in real estate referred to in the previous paragraph can be destined to:
(a) Housing and buildings, either for private or tourist related purposes;
(b) Housing or offices of foreign juridical persons; or (c) Real estate development for tourist purposes.
Foreigners Buying
The reality is that there are 3 main ways in which you can buy property or real estate in Cuba as a non-Cuban. These three ways are as follows:
- Marry a Cuban - this might be a little extreme but it is one of the ways in which you would then be eligible to purchase a home in Cuba from another local property owner. By being married you can apply for permanent residence and this authorization would enable you to buy as a local.
- Purchase a property from another foreigner - If you have no desire or intention to marry a Cuban and have no other direct ties with the country, there is the opportunity to buy from another foreigner. There was a period of time, in the last twenty years, when a number of newly built holiday properties were built and sold to foreigners. These foreigner owned properties can be sold to another foreigner. This is one of the easiest ways for you to buy property in Cuba, if you are not Cuban.
- Through others - Not necessarily a way I would recommend if you want to ensure that you have full control over your own property, but you can do what some people do and that is to buy property in the name of your children, family and sometimes even friends, if they are Cuban nationals. Do be aware that this can turn into a nightmare, such as when family members begin to disagree on certain things connected to the property.
Where to Buy
The decline over the last fifty years of the roads, general infrastructure and the way in which a lack of money has meant that many buildings have been left untouched in terms of repairs, means that a lot of buildings and properties are run down and in a definite need for repairs. If you are brave and confident about the future of Cuba, then making an investment in any part of the country might be a consideration. I would be tempted though to recommend the following locations and for the following reasons.
Airport and Transportation Access - One place where the Cuban government have spent money is in the very central part of Havana. The government has understood the commercial opportunity created from tourism and certain buildings, apartments and streets have seen repair work and investment. The very central parts of Havana, if you can find the right property, are certainly worth considering. Havana also has good links to the main airport and is connected to via a regular main coach service.
Coastal and Touristic - All of the main coastal areas offer the possibility in the long term, if Cuba opens up trade wise, to very good beach rental opportunities. Investment in the following locations might be worth considering:
- Varadero - already a favourite location for British visitors and one of the best resort areas in Cuba.
- Santiago de Cuba - Further from Havana and the main airport, but still a very popular location and worth consideration.
- Cayo Largo Beach - A little cheaper than Varadero, but still a lovely resort and beach location.
Other Resources
The market is unstable and the future unclear for Cuba and trade, so there is a high level of risk compared to buying in other countries. The upside of course is that this higher level of risk is matched by the chance to potential bag a bargain and a wonderful opportunistic time. If you are willing to take a calculated gamble, then you stand the potential to do very well if the country opens up such as if the U.S. trade embargo is eventually abolished.
