How to Buy a Property in Cuba
If you are a foreigner and do not have a Permanent Residence visa, the government only allows you to buy property offered for sale by state-owned real estate agencies.
Private property, on the other hand, is generally only available to Cuban citizens and foreigners with permanent residence on the island. This means that foreigners without permanent residence are restricted in their choice of real estate.
Therefore, it should be noted that in Cuba the number one discriminator is the type of visa with which one enters the country. Those who are not residents in Cuba and enter as mere tourists cannot buy any type of real estate. The advice is to contact our real estate agency, which can introduce you to affordable investments according to your immigration status.
In Cuba you can find excellent investment opportunities. The most pursued after places are Havana and Varadero. But there are also other tourist areas that are in high demand and present very favorable investment opportunities such as Cienfuegos, Matanzas and Holguin.
It is not advisable to venture alone in these regions in search of properties to buy. It is always better to be accompanied by real estate experts like our agency. The reason is that there are certain areas in the various regions, which are under the jurisdiction of the state, so if you buy or sell a property you have to deal with the government, as the state retains the preference in the purchase of certain properties.
The legal framework for real estate transactions
The legal framework governing real estate transactions is Law 65, which was amended in 2014 with changes aimed at simplifying the purchase of real estate for foreign investors.
Among other provisions of this law, it states that when two parties wish to sell and purchase a property, the sales contract must be concluded in the presence of a notary public. The two parties must have already reached an agreement on the price of the property. Each property has a minimum appraisal calculated by the government, so the price agreed between the parties cannot be lower than the official appraisal.
The buyer must also swear that he/she does not have another habitual residence in which to establish his/her residence.
Payment must be made by bank as established by the Central Bank of Cuba. The funds, even if sent through a foreign correspondent bank, must be destined to a Cuban Bank, which will request confirmation of the remittance of the funds before giving its approval to the sale.
Requirements of the seller of a property
1) The seller must deliver the property free of outstanding debts, payment of taxes and expenses related to the transaction. For this purpose, a bank receipt of payment must be presented.
2) In addition, he must state the reasons for the sale and record them together with the sale.
The agreements reached by the seller with any cohabitants who may be left unprotected after the sale of the property must also be included in the registered document. As this is a reason, according to the Civil Code, may even lead to the declaration of nullity of the purchase contract, it is recommended to take extreme precautions and always look for advice from real estate experts who know the history of the property.
Can a foreigner buy a property in Cuba?
We have seen that a foreigner who is not in possession of a permanent resident visa can only have access to a type of property that the Government has earmarked for foreign investors. Alternatively, he may buy a property offered for sale by a foreign investor who already owns a property of this type.
On the other hand, a foreigner with a Permanent Resident visa may also choose among other types of properties, including those offered for sale by private individuals.
In conclusion, buying property in Cuba can be a fantastic opportunity, but it is essential to take the necessary steps to ensure that you comply with all immigration laws and regulations. This includes obtaining the necessary documentation, seeking legal advice, and conducting a thorough inspection of any property you are considering purchasing.
By following these steps, you can ensure that your investment in Cuba real estate is a success and that you can enjoy your new property with peace of mind.
