The Housing Law 187 of 2026 has officially come into force in Cuba as of Wednesday, October 21, marking a significant shift in property regulations. This legislative change, ratified by the National Assembly of People's Power on July 30, replaces the outdated General Housing Law from 1988. The new law introduces changes in ownership rules, the buying and selling of properties, maintenance, and access to real estate.
Ownership Limits and Vacation Homes
Under the new law, individuals are allowed to own up to two homes, along with an additional property designated for leisure or vacation purposes. This distinction allows individuals to possess two primary residences without including the vacation home in that count, as long as it is identified as such in the official title.
If it is found that an individual exceeds this limit, the municipal Housing director has the authority to revoke ownership of the most recently acquired property following the necessary legal process.
Real Estate Transactions with Foreigners and Legal Entities
The law permits real estate transactions between individuals and between individuals and legal entities, whether Cuban or foreign. Foreign nationals who purchase property in Cuba must adhere to the rights and obligations set forth by this legislation.
Transactions must be formalized through public deeds in the presence of a notary within the province where the property is located. Exceptions include transactions favoring the state or those arising from specific administrative assignments. Non-state economic entities are permitted to acquire up to two properties through purchase, as long as they do not exceed this limit through other means.
Non-Cash Payments for Property Sales
The law mandates that payments for real estate transactions cannot be made in cash. Instead, payments must be completed via methods outlined in banking legislation or through other non-cash means.
Sellers must settle any outstanding debts related to the property's purchase price, pay the necessary taxes, and ensure the property is registered with the Central Property Registry before proceeding with the sale.
Cadastral Value as Tax Reference
The cadastral value now plays a critical role in determining taxable amounts for property transactions. The sale price is used as the tax base, provided it matches or exceeds the cadastral value. For other transfer types, the cadastral value is used as a reference as per the revised legislation.
Absentee Representation Requirement
The new law does not automatically revoke property rights due to emigration, a provision present in the previous legislation. However, it does require absentee property owners to appoint a representative to handle emergencies, administrative tasks, and legal matters.
Additionally, absentee owners must maintain their properties in a condition that does not negatively impact the surrounding environment. Failure to do so could lead to a declaration of ruin by local authorities, potentially resulting in the loss of property rights.
Family Housing and Resident Protection
Properties designated as family homes must be registered with the Central Property Registry and are protected from seizure. Conflicts regarding this status are resolved by the courts.
While owners can choose their cohabitants, there are restrictions. Certain family members and vulnerable individuals are protected from eviction if they lack alternative housing or resources.
Inheritance and Occupant Rights
If a property owner passes away without legal heirs, the property transfers to the state after two years. However, occupants who have lived in the property with the deceased's consent for at least five years may be granted the right to acquire ownership.
Subsidies and Obligations
Recipients of state housing subsidies must repay the subsidized amount if they sell or donate the property within fifteen years. The law also allows the state preferential purchase rights for properties built or acquired with subsidies.
Programs for Youth and Families
Programs are in place to assist young individuals aged 18 to 30 in securing adequate housing. These include subsidies, loans, and prioritized housing allocations.
Administrative Responsibilities in Shared Buildings
Apartment owners are required to contribute to the upkeep of common areas and facilities. The law allows for the establishment of housing cooperatives and microbrigades for construction purposes.
Transitional Provisions and Criticisms
Transitional provisions grant a five-year period for certain occupants to request property transfers. Economist Elías Amor criticizes the law for not clearly defining the role of banks or providing sufficient guarantees for a mortgage credit system, which he argues deters private investment amid a severe housing shortage.
Understanding Cuba's New Housing Law
What are the main changes introduced by the new housing law in Cuba?
The new law allows individuals to own up to two homes plus a vacation property, regulates transactions with foreigners, mandates non-cash payments, and incorporates cadastral value for tax purposes, among other changes.
How does the new law affect foreign property buyers in Cuba?
Foreign buyers are subject to the same rights and obligations as Cuban citizens under the new law, and their transactions must be formalized through public deeds with local notaries.
What are the requirements for absentee property owners under the new law?
Absentee property owners must appoint a representative to manage emergencies and legal matters and ensure their properties remain in good condition to avoid negative impacts on the environment.