The Cuban government authorizes the buying and selling of vehicles between individuals and companies.

Among the new measures adopted by the Cuban government in the transportation sector is the authorization of buying and selling vehicles between individuals and companies.

Minister Eduardo Rodríguez Dávila recalled on Tuesday during the Mesa Redonda that until now, individuals could transfer ownership of a car to each other, and legal entities could do so among themselves as well, but legal entities could not transfer ownership to individuals.

"With the new decisions, the transmission of property between all natural and legal persons is freed. I would just like to add that, in the case of state legal entities or those with state participation, the transfer of property to a natural person requires approval from the Council of Ministers," he said.

"For example, a micro, small and medium-sized enterprise can transfer a vehicle it owns to an individual, just like a religious organization, a foreign representative office in Cuba, or a branch," he detailed.

The official added that the procedure is the same as the one currently applied for the transfer of ownership between individuals, before a public notary, paying the transaction value and the corresponding tax, all through the bank.

The prohibition for foreign diplomatic legal entities to buy or sell a vehicle to an individual remains in effect.

Rodríguez Dávila added that individuals can purchase vehicles at authorized dealerships in convertible currencies, IMPEXPORT and CIMEX S.A.

"The vehicles for sale come from imports and others that are retired from tourism rental. The sale prices are formed in correlation to the market among individuals, and they have a margin that ranges from 350% to 500%, of which 30% is the commercial margin of the marketer, and the rest constitutes a special tax that, although charged in USD or MLC, is credited in national currency at a rate of 1x24 into a fund managed by the Ministry of Transportation," he explained.

"In the case of legal entities, the selling price is the cost of acquisition or importation, plus a commercial margin of up to 30%. There is another tax on the amount that applies to the classes motorcycle, car, rural car, and truck, of 100%, 150%, and 200%," he specified.

This controversial issue has sparked criticism against the regime for the high prices of imported cars in Cuba, to the point of being an impossible dream for highly qualified professional workers in the country.

The leader also shared recent data on social media regarding import prices of vehicles in Cuba, including infographics detailing how the government sets the prices for imported vehicles.

It was specified that a hypothetical value of 10,000 USD was used "to facilitate understanding." To determine the final price of the vehicles, the Supplier Price delivered in Cuba is considered, which is the initial value of the vehicle, including freight and insurance. This base price in the infographic is 10,000 USD or euros.

To this base price, Import Expenses are added, which include tariffs, customs services, handling, and transportation of the vehicle, representing approximately 6% of the supplier's price, equivalent to 600 USD or euros.

The following component is the Commercial Margin Rate, which is a margin applied by the selling entity in Cuba. This margin can reach up to 20% of the base price, resulting in an increase of 2,120 USD or euros, bringing the sales price of the distributor to 12,720 USD or euros.

Additionally, a Special Tax by Segment or Range is applied, which varies according to the type of vehicle. For high-end cars, this tax is 35%, equivalent to 4,452 USD or euros, while for other types of vehicles it can be 25% or 15%.

The total to be paid by the buyer is determined by adding all these components. For example, a car, SUV, or truck has a final price of 15,900 USD or euros; a luxury car reaches 17,172 USD or euros; while vehicles of other classes such as minibuses, motorcycles, or tricycles have a price ranging from 14,628 to 15,264 USD or euros.

Cubans were not able to buy motorcycles, cars, trucks, and minibuses, new and used, until 2013, when Raúl Castro allowed the purchase of used and new vehicles, only from the government and with a 100% tax.

Until then, those interested had to have the personal approval of the vice president of the country, popularly called the "letter."

In 2011, the regime authorized the buying and selling of used cars among Cubans, but did not eliminate the requirement for the vice president's signature. Additionally, new cars could not be purchased.