Buying property in Cuba

Christine · 2011-12-02 11:20:03

Hi,

can a foreigner buy property in Cuba?

If so, is it complicated? What is the process of purchasing a property in Cuba?

Any tips for buying property, such as a check-list of items to verify ?

Thanks in advance for participating!

Christine

MacDuff · 2011-12-07 00:44:10

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.

Harmonie · 2011-12-07 08:21:59

Thank you very much MacDuff! wink

mattman · 2011-12-21 23:29:42

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

MacDuff · 2011-12-22 00:44:19

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!

Last edited by MacDuff (2011-12-22 00:45:18)

mattman · 2011-12-22 01:24:55

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.

cubagirl · 2012-01-04 02:22:08

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.

MacDuff · 2012-04-04 07:10:45

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.

dwright · 2013-04-04 20:28:32

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.

MacDuff · 2013-04-29 21:46:00

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

Armando Ruiz · 2013-05-01 22:17:49

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.

MacDuff · 2013-05-02 21:28:01

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.....?

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Buying property in Cuba

#1 2011-12-02 11:20:03

Buying property in Cuba

#2 2011-12-07 00:44:10

Re: Buying property in Cuba

#3 2011-12-07 08:21:59

Re: Buying property in Cuba

#4 2011-12-21 23:29:42

Re: Buying property in Cuba

#5 2011-12-22 00:44:19

Re: Buying property in Cuba

#6 2011-12-22 01:24:55

Re: Buying property in Cuba

#7 2012-01-04 02:22:08

Re: Buying property in Cuba

#8 2012-04-04 07:10:45

Re: Buying property in Cuba

#9 2013-04-04 20:28:32

Re: Buying property in Cuba

#10 2013-04-29 21:46:00

Re: Buying property in Cuba

#11 2013-05-01 22:17:49

Re: Buying property in Cuba

#12 2013-05-02 21:28:01

Re: Buying property in Cuba

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