The Cuban government will update the reference values for homes, which will now be five times higher than those established in 2017, announced Prime Minister Manuel Marrero Cruz during the fourth ordinary session of the National Assembly.
According to the communist leader, the measure is a response to the need to align official prices with real market values, aiming to reduce high levels of tax evasion and delinquency in payments associated with these transactions.
The new policy includes the classification of housing by areas, which will allow for a more accurate adjustment of values based on their location.
Additionally, taxes on personal income related to the buying and selling, inheritance, and donation of homes will be calculated and paid based on the actual value of the transactions, promoting greater transparency in the process.
A significant change is the requirement to pay the total amount for the property before the notarization and registration in the property registry, a condition aimed at ensuring compliance with tax and legal obligations.
With this measure, the regime aims to modernize its real estate management system, although it could pose new challenges for citizens in an already complex economic context.
Housing is not a minor issue in everyday Cuban life, especially because it is an aspect that the government does not give the attention it requires, while it continues to build hotels in the country.
Frequently Asked Questions about the Price Update for Housing in Cuba
Why did the Cuban government decide to quintuple the reference prices of housing?
The Cuban government has decided to quintuple the reference prices of homes in order to align official prices with real market values. This measure aims to reduce tax evasion and delinquency in payments related to these transactions, thus promoting greater transparency in the property buying and selling process.
How will this measure affect Cuban citizens?
The update of the reference prices could pose new challenges for citizens in an already complex economic context. The rise in prices may hinder many Cubans' access to housing in a country where the government has not adequately prioritized this sector, while continuing to build hotels.
What changes have been introduced in the policy regarding the buying and selling of homes?
The new policy includes the classification of homes by zones, which will allow for a more accurate adjustment of values based on their location. Furthermore, it has been established that the total payment for the property must be made before the notarization and registration in the land registry, thereby ensuring compliance with tax and legal obligations.
What are the tax implications of the increase in reference prices?
The increase in reference prices will affect both the Transfer of Goods and Inheritances tax and the tax on Occasional Personal Income. These taxes will be calculated and paid based on the actual value of transactions, which could increase the tax burden for both buyers and sellers.
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