Buying property in Cuba

As I understand the current position, it is that in general foreigners cannot purchase property. There are I believe certain exceptions - embassy staff and key employees of companies involved in joint business ventures with Cuba.There has been some mention of a joint project between Cuba and a UK developer building some resort condominiums for sale to non-Cubans and a golf course, but I don't know if that has progressed to the point of actual sales.Our home in Cuba is in my wife's name as I am a foreigner.I think that it will take some time to understand any effects there may be as a consequence of the change to allow open buying and selling.I know of a potential developer of shopping malls, but at the moment they are just watching.

Thank you very much MacDuff!

I have the same questions as Christine and would be interested in responses on this topic.

Mattman, it is not possible for anyone to just go and live in Cuba.It may be possible to immigrate into Cuba and become a Cuban citizen, but I do not know of a single example of anyone doing so.Have you been to Cuba and examined the living conditions in the non-tourist areas? I do not mean visiting a tourism resort like Varadero, use Casa Particulars and the Viazul bus service As a US citizen, your problems are even greater, because  your government has laws preventing you from going there legally. Yes, I have met Americans in Cuba who have gone there by flying to Mexico or Canada and taking flights from there. But your US credit cards are non acceptable and you would have to take sufficient cash to pay for everything. There is a 10% surcharge on US dollars at all banks and cadecas. I have explained elsewhere that you cannot buy property in Cuba. A tourism visa is for up to thirty days, it can be renewed for 25 CUC for a further thirty days, then you must leave. Hope this reality helps you!

Thanks for your reply:) Are you a Cuban citizen? Just curious. I understand the whole problem related to spending US$ in Cuba, and the specifics of even getting to the island, as a US citizen. I am really curious about the current changes taking place there though and the prospects for future change ... politically and with respect to travel and the aquisition of property for non-citizens.

MacDuff is right about not being able to buy property. My husband is Cuban and we are still working through the immigration process for him to come to the U.S. In the meantime, I travel back and forth freely from the U.S. We will be keeping the family home in Cuba to stay in when we are there. Mattman, I can understand your interest in Cuba. We are not located in a high tourism area and use the bus system when not walking, and we love it. It's a slower pace of life and has much to offer.

Hi Mattman, I have just returned having spent three months at home in Cuba with my wife. No, I am not a Cuban, but am married to one, so I have two homes and spend half my time in Cuba. My apologies for the delay. One could write a book about "changes" in Cuba.irrespective of media views, it is wise to remember that Cuba is a one party communist state and that "change" has to be seen in that context and that criticism of the government is an offence.The economic difficulties are very evident, but don't expect any dramatic change. Our home like that of Cubagirl, is not located in a tourist area and as she says the pace of life is slower. Life for most Cubans consists of trying to obtain 25 pesos for tomorrow. That can be done by working as a professional - doctor, engineer, teacher, for an average of 25 pesos per day or by going to the "Empresa" to buy 25 loaves of bread for 5 pesos (200 gm)each putting them in a cardboard box on the back of the bike and cycling around the town blowing a whistle and selling them for 6 pesos each, or selling a few vegetables or fruit from the front of the casa or selling pirate DVDs, but the number of sellers is increasing and the number of buyers is static, so the law of diminishing returns applies.25 pesos is One dollar.

I realize it has been a while since the last post on this forum, but I would like to take the issue one step further and see if I get any comments back.  I realize that extranjeros cannot buy property in Cuba, but I would like to know if anyone has witnessed the actual buying and selling of property between two Cubans, especially after the recent changes (Nov 2011) in their real estate exchange laws.  Here is my situation that has given rise to this post:  I live in, and am a native born citizen of, the U.S.  My Cuban fiancee (known for six years) who lives in Havana, has found a great deal on a furnished apartment (there seems to be a lot of fully furnished apts for sale as I assume a lot of Cubans are making plans to leave the country since the travel ban was lifted).  I am thinking about buying it and I know it will be registered in her name only, but I want to make sure it is done right.  I am a banker and I cannot find anything on the web about the actual nuts and bolts of property transfer in Cuba.  To further complicate things, after I find out the details of how the transactions are actually closed, I am wondering how I will actually (physically) pay for it (cash vs a bank cashier's check, etc.).  Being a banker, I am involved in real estate transactions in the states all the time, so I am wondering if they have anything similar to property title insurance, title companies that oversee and close the transaction, is there anything resembling home owner's insurance, do apartments occupied by Cubans have HOA dues to keep the general apartment property up?  I have other questions such as- how are you assured that the person selling her the apt is actually the owner?  Finally, I was wondering if anyone had every witnessed or been involved with an American paying for property for a Cuban and, if so, how did he/she pay for it?  When I travel to Cuba, I have to travel with cash (I take Canadian dollars to avoid the 10% penalty on exchanging U.S. dollars to CUCs) as my ATM card & CCs do not work there, and I have tried to get a Canadian CC but found that is not possible without residing in Canada.  I was also thinking that, since the seller is headed to the U.S., if it were possible for me to pay them in U.S. dollars so we both would save on the exchange rate, or does the money between buyer and seller have to come in CUCs and be handled by a third party that oversees and records the exchange, like a title company would do in the states?  To anyone that knows some or all of the answers to my questions, your response would be appreciated.

Try me by e-mail, won't comment on the forum! MacDuff

There have been several sales of property in Cuba in the past year, the first thing that you should make certain of is that the property title or papers of ownership by the current owners  are certified and verified by the proper authorities, they may not be the original owners from before 1959, you should be careful with this specially in the high end property market as many mansions and small palaces that were confiscated or abandoned by the original owners may go in to litigation if there is a radical change in politics in the future, I don’t think there will be any legal problems  with medium size or small properties. I believe that most if not all sales have to be arranged through an attorney’s office, the paperwork and procedure may be similar to that of the US??.  There are other countries that have relations with Cuba beside Canada such as Panama, Guatemala; Costa Rica Etc. which will open an account for you even if you are not a resident of that country using an attorney’s address, the best procedure is to open a corporation in one of said countries, both, a corporation and an account start as low as $1000.00, if you want it to be anonymous or bare bonds be prepared to pay up to $5,000.00 or more but the positive side of this is that you can latter certify said corporation in Cuba if you plan to do business there as a foreigner and chances are that you may be able to obtain a mortgage from a Cuban bank, I believe they are now available in certain cases.  Property insurance and property inspections I suppose would apply if you decide to finance your purchase (this is a complicated route to take in Cuba) but as a rule it is not a condition to buy a home or car.  Loans are also available for the purchase of new cars if you have a foreign corporation certified in Cuba, I don’t think they finance classic automobiles but there are thousands of those already restored for sale with proper transfer. I hope this helps.

As indicated, I am not willing to provide details of our purchase on this public forum. But different state authorities are involved in sales, these include an architectural inspection and the Notary's office. The price is negotiated between buyer and seller. Armando Ruiz sensibly warns about the potential risk of former pre-1959 owners claiming property for which they hold papers, I personally don't think it will ever happen, because once a state has recognized ownership and provided documents and those holding those documents are in occupation of the property it would be more than difficult to persuade any country to rescind those documents and penalise those who purchased legally, possession being nine tenths of the law. I realise that there are many substantial companies in the US that want to claim property that was nationalised by the Government of Cuba, but the US itself has a record of opposing claims in Suez where it pressurized the UK and France to withdraw and yield to Nasser. Three years later it got bitten by Cuba, a question of what is sauce for the goose.....?

When about 15 years ago or so Fidel had visited New York, the super-rich (Bloomberg, Zuckerman etc) had a private meeting with him where Fidel has essentially pre-sold most of the prime real-estate in Cuba to Zuckerman's real estate holdings. Obviously, once Cuba normalizes relations with the US, Cuban real estate will be among the priciest in the world. How does that affect you? Most of the best (i.e. beach-front) real estate already has an owner waiting in New York.

I am surprised by this opinion as a high percentage of the prime real estate on the prime beach fronts comprises hotels. A high percentage of those hotels are in joint ownership with overseas companies. The three hotel/golf course proposals for the western tip of Cuba are also joint ownership proposals - currently on hold as a couple of directors of the involved companies have been jailed for under the table payments to good employees - the employees being paid by the state not the overseas partners in all the joint deals as the state retains 51%. Fidel at 87 is unlikely to benefit from any deal but I suppose his children from his various relationships could do so. Only the US not Cuba can normalise relations as the second embargo was introduced by the US. The history of the US in Cuba from the time of the Monroe Doctrine does not bear scrutiny - from attempts to buy the island from Spain, to the Spanish American war, to the 1902 Constitution, to the Platt Amendment and military intervention, to the more recent Helms-Burton Amendment add to this the activities of the US Mafia and it is reasonably easy to see why many Cubans despise the US Government. Obama raised hopes of improved relations when he promised to close Guantanamo - but now Cubans regard that promise with justified cynicism. All this causes me to question the view given about Zuckerman, but it is an interesting one.

Well I too have entertained the thought to acquire perhaps a small house or apartment in Cuba, to retire in peaceful solitude where once Hemingway strolled the streets, but I know that when the real-estate venue opens up to ordinary folks, the price will be in millions. The likes of Tom Hanks and Steven Spielberg will call Cuba their home, with ample security to keep us out.
The Zuck. meeting was briefly in the news at the time, and I know from a second-hand (but reliable) source that it was about acquiring the best Cuban real-estates.

Hi OmegaMan,
Our home in Cuba is in my wife's name as she is a Cuban citizen. One of Raul's actions (I think I recall August 2011 as the date) was to allow Cubans to sell and buy their homes. We purchased in 2010. The position regarding longer term residence in Cuba is still complicated. I am now allowed to stay for up to six months at a time using only an extended tourist visa. Prior to July 2012 I was only allowed 3 months using a personal visa abtained from the Cuban Consulate in Toronto for $128. Cubans tend to regard the steps taken by Raul as giant leaps forward as they represent large changes for them whereas for us they are small shifts. You are I think correct in saying that if in the future Cuba abandons the one party state system property prices will increase, there is little to indicate that that will occur in the short (seven years) term. As you know, the US loves litigation and I think that the legal cases that will emanate from a political change in Cuba will take many years to settle as every Tom, Dick and Harry in Miami plus many listed companies on Wall Street will make property claims further delaying potential property transactions. There is an assumption by many that given a free election the Cuban people would reject the current regime, that I think is a problematic view. Anybody under the age of about sixty being unable to record any other form of government and comforted by the view that the State provides from the cradle to the grave. Independent self sufficiency is a disturbing thought for those brought up under the current system. In short, I don't think that one should anticipate large change in property ownership.

I am assuming that you live in Canada, and thats why you see the things as you do, but here in the US, Cuba is a hot-button issue in business circles and many corporations cannot wait until they can put their hands on it. Fidel is right on this one. Before he took over, it was Cuba, not Las Vegas and Hollywood, the center of American showbiz and the playground of the rich. The mafia had not without reason turned every stone as high as JFK, to get Cuba back. That property that your wife now has, soon may very well make you an instant millionaire. Zuckerman and Bloomberg, they aim at billions. They will not give up on their investment. 
PS: What you wrote, that joint developments are slow or not happening in Cuba (despite that Cuba could obviously use the money), I think its because Fidel already got a down-payment on those lands.

Firstly, as  understand the second (current) US embargo, one of the conditions for lifting it is free elections. It would be unwise to consider that an elected Cuban Government would permit the return of property considered by US citizens and US multinational companies to be theirs. Any Cuban Government adopting such a policy would I think be rapidly deposed by a free electorate. As I think I previously indicated, the US (but not individual citizens) is despised by many Cubans including the very well educated professionals. The concept that a democratic Cuba would allow itself to revert back to the "good old days" of US control in conjunction with the Mafia running rampant is I think not possible. The current embargo is opposed by most of the US allies including Canada and the UK. Helms/Burton is used by the US as a threat against any business fropm any country doing business with Cuba - the bully boy syndrome being counter in my view to US long term interests - it smacks too much of neo-colonialism. Yes, I am a Canadian citizen but I spend more than half my time at home in Cuba and my opinions are based upon day to day relationships and one on one discussions with Cubans, most of whom do not live by the beach or are involved in tourism. Well over half the population of Cuba is black or mulatto whereas the large majority of the Cuban population of Florida is white and that too is a factor. I like you would support "Viva Cuba libra" but don't believe that a return to the days of Batista is possible - and it certainly is not desirable. I don't think that Cubans would just lie back and accept the corporations to which you refer would be allowed to get their somewhat dirty hands back onto controlling Cuba.

I hear that since Cuban nationals can now buy properties in Cuba, and prices are already way out of reach of average Cuban citizens, the buyers are "Cuban-Americans" from Florida. Apparently they retained their Cuban citizenship living in America, and now are eager to head back to Cuba with their (often narco) dollars. If thats the case, you will have the mafia back in Cuba in no time. These people will bribe and extort their way back to prominence in business and politics just as they did in Florida, and before that in Cuba. A very likely scenario is that Cuba will revert to a Mexico-like narco state with these drug bosses running speed boats between Florida and Cuba. Looks like that Raoul Castro might try to implement some sort of an Eastern European model of communism of state and private enterprise side-by-side, but I think he will end up like Gorbatchev or Honecker, simply pushed aside. Unfortunately I can't travel to Cuba before that happens, and after that I probably don't want to.

I think you have given a pretty fair description of many of the Florida/Cuban population. After all when the US opened the gates (1988?) Fidel used the opportunity to empty Cuban jails. But, I also understnd that the Cuban vote in Florida was avidly pursued by George W. Bush and that implies US citizenship. Cuba does not recognize dual citizenship - ie: you can be Cuban or American but not both so the number of people of Cuban origin holding Cuban citizenship would appear to be limited. Although house price increases are rumoured in Cuba I have found little evidence and people are having difficulty in selling. I also think that it is wise to differentiate between Havana and the rest of Cuba. Cubans cannot move into Havana without a permit which is difficult to obtain. As you will know, there are no casinos in Cuba and in my opinion that is restrictive in the proposed development of golf course/hotel complexes located well away from towns. All Cuba would have to do to introduce casinos and control them would be to copy the Canadian model. Prostitution already exists without the mafia and there are few businesses from which to extract "protection". You indicate that Raul may be trying to introduce some degree of capitalism and I think that that is why he took his trip to Vietnam and China. But, Capitalism has been utilised as the BIG BAD WOLF for fifty five years by the regime and Fidel in particular is totally opposed - hence the very timid steps. It is obviously as China realised the only way to develop a vigorous economy but the regime is firmly stuck on the horns of the dilemma. It is as you indicate going to be an interesting period when the "Golden Oldies" die off.

I agree with you  Mr. MacDuff about many things and the Mariel boatlift but if you take a look at National Geographic Magazine from 1972, May or March issue I don’t remember which, it an article dedicated to the Miami Cuban community the close to 300,000 Cubans in the Miami-Dade area at the time were already creating jobs for more than 400,000 other people, this was way before the drug era and the Mariel incident.
I also agree that Raul Castro is on the right path, we have seen what communism does compared to the imperfect but best system of capitalism and free enterprise,  I believe that as many more options and openings are approved things will change drastically for Cuba at least economically, many Cuban exiles in spite of their politics will jump at these opportunities and contrary to what some friends may thinks  there is no real breach between most of us, after all we are also Cubans and part of that country’s history and culture. I am currently restoring part of my family’s heritage there, I have their full support and I’m an aristocrat!!?.....
Cubans were also never haters of Americans as many in other countries of Latin America, our cultural and business relationship goes back more than 250 years for better or worst, political differences yes but hate as some on this forum imply, never. We even had the best of relations with Spain and forgave all their grievances during the colony, respecting the tiles of Cuban Nobility and taking more than a million Spanish immigrants from 1918 to 1959.
As a rule the Cuban government does not give dual citizenship to those who left the country after 1970 or 71 but to those who left before there are exceptions if you simply left legally. I have both and travel with any passport I wish, the variance is that with the Cuban passport I can go in and out of Cuba as many times I as I want and stay as long as I wish,  with the American one I have to request a visa to enter the country and renew it each month.

Mr. TheOmegaman,
As a Cuban -American I must respectfully address some of your comments and also protest some of your statements.
While I admit that Cubans in general are highly “creative” to say the least  most Cuban exiles of means and wealth did not make their fortunes  trafficking  drugs, there are over thirty million “Hispanics” in the US, of these less than two million are Cuban, yet 43% of all Hispanic business in this country is in their hands, this is not including the presidency of several major American industries at one time or another such as Kellogg’s, Coca Cola, Florida Power and Light, Burger King and many more, some have even been favourite fashion designer for First Ladies such as Nancy Reagan and Michelle Obama.  I won’t go any further than this simply because we would be bored with statistics.
It is true that many Cuban-American are buying property in Cuba in spite of their dislike of Cuba’s government,  most are doing this to secure their relatives future, they can only do this under their name for now, do you blame them? and yes 99% of these Cubans are white, again the black population in Cuba which by the way according to the last census is about 45% black and mulatto (65 to70% in the cities) is being dealt a bad hand but they have gotten it also from the current government, did you know that the salary for black entertainers there such as Celia Cruz, Rolando Laserie and countless other was about $2000.00 monthly through the actors union before 1959, this was more that a white surgeon made in the US at the time.
The Mafia certainly had an involvement with Batista personally not with the Cubans in general ,you are giving them too much importance repeating a bit of trumped up propaganda, as an example, even they could not secure a membership for Batista in any of the five major private clubs in Havana since Batista in fact was of mixed blood, he was finally accepted at the Havana Biltmore after paying more than a million dollars, all the members slipped away when he arrived as management turned out the lights.
We certainly do not wish to go back to Batista’s days or anyone like him for that matter, if you do a little research you will find out that the Cuban revolution was fought to bring back democracy to the country and respect the 1940 constitution which actually was a very socialist constitution and not to the liking of many company owners and businessman, supported and financed by the rich and most of the middle class in Cuba, most of it in exile now, but it was never a racial or class revolution until it was utilized by that purpose later. I can attest for some of this, my family gave a half million dollars to the revolution, multiply that in today money!

Hello.

I think we're getting away from the initial subject which is Buying property in Cuba.
Maybe we can come back to the subject.

Thank you,
Aurélie

Aurelie I just thought i should say to you that property purchase in Cuba is a very complex subject and that in my view Armando Ruiz is expressing views which are relevant to the subject of buying property in Cuba. The history of the Mafia, Batista and the racial make up of the Cuban population are all factors. In democratic countries such as your own 9yes, I have been there) property purchase is a normal daily occurrence but for over fifty years it has been a black market transaction in Cuba and Raul Castro has now relaxed the controls. This is a very major shift for Cubans and one (non party member)in conversation with me described it as the biggest political change in his lifetime. Cuba is now almost unique in that it has in compliance with its constitution studiously avoided any possible form of "capitalismo" which is anathema for Fidel in particular. Raul popped off for a visit to Vietnam and China last year and was no doubt dismayed to find that each was fervently pursuing capitalism - with marked success the only other country matching Cuba's "pureness" and similarly a family form of dictatorship is North Korea. I would advise reading the current Constitution of Cuba - it is available on the web in English. Armando Ruiz wrote about the racial make-up which last year in Cuban Government statistics was given as: 10.9% black, 42% mulatto, 1% asian and the balance of some 46% white. A quick glance at a photograph of the Castro heirarchy demonstrates few colours other than white. I am not criticising your view, but commenting upon it as I think that Mr. Ruiz contributions are valuable to anyone interested in purchasing property in Cuba.

You are absolutely right Aurelie.
But comments generalizing about a people or a community and repeating any kind of trumped up propaganda from the right or the left without investigating it’s true nature, sources and intent  sometimes deserve to be given the opinion from a member of the people whom these comments address.
Mr. MacDuff  is knowledgeable and objective about Cuba and makes a very valid analysis about the economical and political future of that country while Mr. Theomegamen is deeply influenced by another kind of information which I believe is very divisive, negative and specifically designed for that purpose, he’s comments have strayed us away a bit from the objective here.
The bottom line is that this is a forum to discuss how to purchase property in Cuba and what to expect in the future, not who will get prime real estate there.  I think it is and will be like anywhere in the world, if you have a lot of money you will get prime property and if you do not then you will be able to afford a more modest one.
People are also focusing too much in Havana, Cuba is not a large country, a little smaller than Florida but by no means a small island, it has thousands of miles of coastal property and other beautiful major cities where you can get more for your money than in Havana, there are gorgeous towns with breathtaking scenery in the provinces, communications are good, decent roads and very complete train and air service, this is an option for those  who may not be able to afford Havana, let’s face it not everyone  can afford NY, Paris or London either.
As to the regular populace being able to afford to purchase a home, most families are home owners there and if they wish to purchase a property it’s also as anywhere, you sell your property and purchase another with the proceeds , as the economic changes and private enterprise takes hold many more Cubans will be able to generate a more desirable income and afford a mortgage.
I also think that sooner than latter Cuba will to foreign buyers. The changes are slow but are sure to come and the mood and opinions of the exile community is also changing and becoming more tolerant than before.

Greetings Mr. MacDuff,
I am convinced that Raul wants broader changes and capitalism of a sort is already happening in spite of Fidel’s wishes and that of his more orthodox followers who are being slowly ostracised from the government.  Communism had its purpose politically for the ruling class at one point but as we know such systems have been proven to be economic poison, do not produce and need the support of other countries to survive, Venezuela is not really a long term solution.
I agree that the right to own property, although limited, the creation of an entrepreneurial class and the allowance of private enterprise is a more feasible answer to Cuba’s internal economic problem and auto dependence, this is the backbone of any economy that works.  I think that Raul wanted these changes since the mid 1970’s and there was a time in which Fidel had serious differences with him over this. 
We could write a book about Batista’s negative influence in Cuba, mainly his fracture of the democratic system and subsequent shady relations but economically and in spite of Batista who was one of the drafters of the 1940 semi-socialist constitution and his great support by the workers unions in Cuba, the 1950’s was an economic miracle, Raul and Fidel know this and also that such economic freedom and openness to the world made it easier to overthrow him but that was over 50 years ago and I think that Raul is more inclined to secure the future of his family than to face a more dramatic scenario if something is not done about the future of Cuba’s economy.
I am sorry if these comments are not exactly about real estate purchase in Cuba but as many of those who wish to live there will slowly realize Cuba is extremely different from any other Caribbean or Latin American country, it’s a very complex society with almost 500 years of history, triumphs, losses, periods extreme cultural, social and economic opulence and also great misfortunes. If people who want to live there do not understand the place. Its history, economy, idiosyncrasies and people it may spell disaster for them.

Hi Aurelie, I am very interested in the views Armando Ruiz is expressing particularly as he is a Cuban living in the US and is aware of the current views of Cuban Americans towards their homeland - he suggests that some of them are mellowing. So perhaps you should start a new subject entitled: "Cuba, factors influencing a future transition"
I am certain that both Mr. Ruiz and I would agree that a future transition has to be peaceful and will require understanding and a marked degree of tolerance by both exiles and current residents as their current economic conditions are so very different. Cuba does not have Nelson Mandela or Archbishop Desmond Tutu, but it could for example build upon its tourism. The projected golf course/hotel complexes proposed for the western end of the country where there are no towns of significance will for example require casinos to provide guests with evening entertainment but the history of the mob meands that casinos are anathema to Cubans - if however they adapted the system we have here in Alberta of government control the problem would not occur and Cuba's income from tourism would rocket. Another difficulty currently being experienced by joint investors with the Cuban Government is that Directors can be jailed for paying good employees a bonus as the Government is the actual employer. The current Constitution would have to be amended and freedom of the media introduced. Just a few thoughts!

Hi Mr. MacDuff and Hello to all,
As news of changes and development of the real estate market in Cuba are a bit slow and far between it’s perhaps a good idea that we also discuss some of these issues which are indirectly relevant since the economic and political estate of a country affects it’s lifestyle to include the value, access and the future of property in any country in the world. It may keep this forum interesting and shed some light in to Cuba’s history in particularly the transformation undergone by that country in the last 50 years and what to expect in the future.
The exile community stands divided but as the last elections in the US shows, many are breaking away from a one track mentality and looking at options. Since the beginning of the 1960's an invasion has been discarded and all the wealth, political clout and influence of the Cuban community in the US and Europe has proven to have little effect in making a significant change in Cuba’s government.
I believe that the mentality about casinos will change in time. Much have been said and written about casinos and the mob’s involvement with the former Cuban government in the 1950’s but we must keep in mind that much of the literature available about this after 1960 has been written with the approval of compromised writers to the present government who needed a justification as to why a country with the third largest middle class in Latin America must adopt a communist system, disproportionally vilifying anything that did not conform to the new ideas and a “new man”. The mob, U.S. interests and also Cuban capitalists became the “boogieman”.
Although the activities and corruption of some of these people was highly reprehensible in Cuba as much as in the US there was a variance that in Havana, specially, violence was not a needed procedure since these people were actually invited to invest much to the dismay of the US government at the time who somehow also wanted to find a way to channel and legitimize this wealth, thus “Las Vegas”, Atlantic City and Etc. Who have greatly benefited from the advent of the Cuban revolution since 1960.
People in the US and certainly European intellectuals tend to simplify the issue based on information given by a propagandistic machine which narrows down Cuba’s economic control to The US and the mob. The real facts are that normally these people kept to their interests and did not rule or affect the life or vast business world in Cuba which had been steadily moving away from a single product economy to services and manufacturing since a little before the 20th century and peeking in the 1950’s. Many American firms did have joint ventures with Cuban firms, I can cite many but just as an example: Philco and Tropical Radios were producing TV sets in Cuba since 1953, a time when 70% of the world had never seen such technology.
These companies created hundreds of thousands of jobs for Cuban workers and before anyone stars with the exploitation of the proletariat, most workers in Cuba were unionized and enjoyed the standard minimum wage, 40 hour work week, one to three months paid vacation, sick days and bonuses plus many other benefits. As the Cuban government moves again toward free enterprise these principals will probably apply. One thing they must do and there is a lot of speculation about this, it’s to eliminate a double currency, this will enable the bulk of the Cuban population to become real consumers again and help the economy grow as well as banking services.  I believe according to some sources that this is in the works.
As to political freedoms and access to the mass media by any opposition this will probably happen within the next 5 years or after if there is not a sudden change before for unforeseen reasons. There is a kind of "glasnost" in place but who's to say what can happen in the interim.

Yes Christine a foreigner can buy property in CUBA however the foreigner must become a permanent resident first.

Off the top of my head I believed the Cuban government changed the law in November 2011 to legalize the buying and selling of property, this new law and the Cuban constitution allows foreign permanent residents the same rights as Cuban permanent residents such as rights to property,free healthcare and education.

Residency is granted through either Visa E1: Marriage, child,parents, or Visa E2: If you don't fall in the previous category, immigration can grant this visa at their discretion maybe for compassionate reasons such as; extended family members,fiancee and so fourth.

After 5 years of continuous residency one can apply for Citizenship or 2 years through marriage if one has a child (something along them lines).

If one does acquire permanent residency please be vigilant on your rights, many Cuban locals and professionals do not know there own law or will just try to fool you to make extra money.
Its advisable to obtain a copy of the law in case you need to challenge anyone with regards to your rights to buying a house,free healthcare,education and so fourth.

The process of buying a property will require a lawyer maybe a notary to be exact. The government will tax the purchase hence why many people on paper will make the house look cheaper.

I hope the information I have given you is enough, My expertise is more with immigration and custom laws as oppose to housing so I cant remember everything with regards to the actual process when it comes to buying a house but now its legal the process is not so bad as before.

good luck

kind regards

Hi zane7,

Welcome on the forum

Thank you for posting and for the sharing of information

Maximilien
Expat-blog Team

Hi dave_03,

Thank you for your help.

Priscilla
Expat.com team

Foreigners cannot buy houses in Cuba.

Senor Ruiz,
You got your timing right, I returned to Canada from Cuba yesterday and have spent the day trying to catch up with e-mails received since September 26. You and I are both fortunate in that you have a deep knowledge of pre-revolution Cuban history and I have as I hope a reasonably unbiased observer have been able for a few years to spend half my time living in Cuba as part of the community. Both of us have an obvious knowledge of politics which is essential when viewing any aspect of current life in Cuba. My own view is that two issues are going to determine the future. President Raul Castro has said that he will retire when he completes his current second five year term - ie: in four years time. Hugo Chavez's successor Madura in Venezuela scraped into power with a 1% majority earlier this year and now has to deal with what 'The Economist' described as 'Hugo Chavez's Rotten Legacy' inflation being at over 27%. So in four years time Raul retires and it appears highly probable that Madura even although controlling the media, will lose. His likely successor will cut off the means by which Venezuela provides financial support to Cuba. This will almost coincide with Raul retiring and Diaz-Canel taking over (unless Rodriguez challenges). These two factors will ensure major change. Raul having had his trip o Vietnam and China in 2012, is aware that those two ountries have boosted their economies by the adoption of the dreaded 'Capitalismo', but Raul has difficulty in doing so as long as Fidel is in the background and who has for over fifty years held Capitalismo responsible for all that is evil. As an ardent Marxist Che borrowed the "new man" phrase from Stalin and that concept is now I think as dead as either the Dodo or Stalin.
Regarding Casinos, you will be aware that three hotel/golf course complexes are planned for north of Maria Gordo, The difficulty there will be nocturnal activity for the anticipated golfers as there is no nearby town for entertainment and no Casinos. Here in Alberta, the Government controls the Casinos and the idea that they are necessarily connected to crime is nonsense. I agree with you that the double currency system mustt go, but the change would necessitate the people of Cuba becoming even more aware of how small their incomes are.
There is no long term alternative to the introduction of real private enterprise and capitalism, but the regime will fight it to the end. I love this debate, because it is about the real Cuba, not the tourist perceptions.

Hello my friend Mr. MacDuff,

It's a pleasure to hear form you, I did not answer your last comment because you were leaving for Cuba on the same day but I've got the information you sent, your phone No. etc. Hopefully we will coincide down there soon.

Maria La Gorda used to be Punta Gorda, it's a gorgeous spot but you are right there are no major towns nearby although there is a very historical city close to the area, Guane, funded in 1587, it was the capital of the province of Pinar del Rio until 1784, no great night life there but absolutely breathtaking scenery, valleys and some other interesting towns to drive to.

About long term plans for capitalism, there is no other option but to re-create a producing economic society. Cuba has been a big experiment, how to convert a most extreme consumer society (you can still see the vestiges of it everywhere in Cuba) in to a centralized economic and social system, they may claim certain trumped up triumphs but in reality it did not work and to at least repair the damages caused by this experiment it will take incalculable amounts of money, resources and a bit of time.

The real beef between Fidel and capitalism was never about economics but power, control and personal differences with the Cuban Upper Classes, this principal still applies for him and thus his absolute opposition to it. I will tell you some things about his motives by e-mail since I know and visit certain families which were friends of the Castro's, these people never left the country and have been able to keep some of their property and wealth, boy! do they have stories!.

I believe the one currency policy will be a positive change, perhaps they will increase salaries accordingly, this would give a definite bust to the economy and return the Cuban public back in to a comprehensive consumer at least.

Well MacDuff, I will try to write to you at your e-mail this week Tell you some anecdotes and send you some videos of my family there.

Regards,

Armando

Hello all,

Thank you for this thread which is both fascinating and well-researched by the looks of things.

I am writing on a very specific topic to which I cannot find an answer elsewhere. My Cuban wife and I are on the verge of buying a property in Havana through an estate agent in Canada. We have met the seller, visited and everything now seems in place to put down the deposit and make the sale.

The question I have is this: the seller is asking for the Government-set asking price for the house to be transferred to Cuba (which is about 15 per cent of its "real" price) and the remaining money to be transferred to a foreign bank account. Is this normal practice to split payment for a property between Cuba and a foreign country? The estate agent assures me that it is, claiming that the Government cannot accept large valuations since it is still trying to live the pretence that houses are affordable to ordinary Cubans.

Does anyone know if any of this is true?

Thanks in advance for any rapid responses!!

Hi DavidC84,

As far as I know there are no government set prices for the sale of homes or property in Cuba, there are no formal appraisers either yet, prices vary depending on the size of house and the neighborhood (it's kind of an unofficial appraised value set by homeowners and agents) these fluctuate between a few thousand dollars for a small apartment in the more depressed and populated areas of Havana to millions of dollars for residences in Miramar, Siboney, Cubanacan, Vedado and such neighborhoods, there is a tax or fee which the government charges on every sale, about 4% of the proceeds.

In reality I don't think it matters where the seller has their moneys deposited as long as the government is paid it's percentage, but make sure that your paperwork for the purchase is in complete order and the transfer of property is finalized but it seems to me that the seller is providing the government with a lower price to pay less on the required fee and of course a larger amount transferred to a Cuban bank will not support or justify the price notified to the housing and property offices.

If there is one thing I really do know for sure is that Cubans can get very creative doing business to say the least so please be very careful and even if you have an estate certified agent try to have a reputable attorney represent you in Havana and have him/her clarify all your questions before you disburse any funds.

Good luck to you and your wife.

Hi everybody, 
I am watching events in Cuba, and always said since 1992 that when the new political tide comes in, the entire Caribbean tourism will suffer immediately by tourists flocking to the region's largest, most opportunity promising island nation, and forget about the "secret hideaways" of the Caribbean Sea ...
If anyone has questions about St. Lucia, please let me know them. 

DavidC84 wrote:

Hello all,

Thank you for this thread which is both fascinating and well-researched by the looks of things.

I am writing on a very specific topic to which I cannot find an answer elsewhere. My Cuban wife and I are on the verge of buying a property in Havana through an estate agent in Canada. We have met the seller, visited and everything now seems in place to put down the deposit and make the sale.

The question I have is this: the seller is asking for the Government-set asking price for the house to be transferred to Cuba (which is about 15 per cent of its "real" price) and the remaining money to be transferred to a foreign bank account. Is this normal practice to split payment for a property between Cuba and a foreign country? The estate agent assures me that it is, claiming that the Government cannot accept large valuations since it is still trying to live the pretence that houses are affordable to ordinary Cubans.

Does anyone know if any of this is true?

Thanks in advance for any rapid responses!!

Hi there,
See if the agent (or insist that the agent) accepts payment held in escrow.
Do you know how this works and who does it?

I am new to this forum and lover of everything Cuba- we live in Toronto, Canada, travelled to Cuba extensively over the past 15 years and made lots of friends. Yes, Cubans are creative...and that's what one would expect from a highly educated populi... I just wanted to say that I read the exchanges (especially) between Armando and McDuff with avid interest. Thanks for the informative posts, a clearer picture of the history, politics etc. of Cuba...info that one would never have access to via media etc. Excellent information. We have also been "eyeing" Cuba for some property and are quite aware of the do's and don'ts...just waiting to see what happens in the next few years or so and how the new changes will eventually impact (or not) the ability to purchase.

Hi everybody
I am Canadian citizen and I have the Cuban permanent residence, which allows me to buy, sell or trade a real estate property , or car, in CUba, as any Cuban citizen. I have almost all the rights a Cuban citizen has,(i cant vote,lol) and a few more advantages.