The state real estate agency Cubija, which manages the leasing of properties to foreign companies and individuals in Cuba, has implemented a policy that requires its foreign tenants to pay rent in United States dollars (USD) instead of Cuban pesos (CUP).
The measure will take effect from July 1 and affects non-Cuban tenants, both businesses and individuals, as reported by the agency EFE.
The measure represents a significant disruption for international companies, which until now were receiving payments—often from the government—in CUP, a currency that cannot be used outside of Cuba and that is worth less and less within the country itself.
The change has raised concerns among the affected companies, as it represents a significant increase in rental costs, especially considering the difference between the official exchange rate (1 USD = 24 CUP) and the value of the dollar in the informal market (around 375 CUP).
The regime argues that this measure, authorized by Resolution 20/2025 of the Ministry of Economy and Planning, aims for certain state-owned enterprises to access a fraction of the foreign currency they generate, which represents a further step towards the dollarization of Cuba in all sectors.
Cubija is part of the business group PALCO S.A., which is under the control of the Revolutionary Armed Forces (FAR) through the GAESA conglomerate.
Economic impact on foreign companies
According to several communications sent by Cubija to its non-Cuban tenants - which were accessed by EFE - the official exchange rate of 1 USD = 24 CUP will be used, applicable to legal entities.
This multiplies the cost of contracts for many tenants by up to fifteen times when compared to the actual exchange rate in the informal market.
The new scheme has been met with discontent from foreign companies and individuals, several of whom have reportedly responded in writing to the real estate firm expressing their rejection.
The mentioned news agency reports that some have even refused to accept the change, which they consider abrupt and detrimental to their operations on the island.
A context of scarcity and financial control
Cubija justified the measure by explaining that the Ministry of Economy and Planning approved a "foreign currency financing scheme" for the Palco group on March 31.
This scheme is part of a broader effort by the Cuban government to establish mechanisms that allow certain entities to access a percentage of the foreign currency they generate, in a country where most bank accounts lack cash backing.
Cuba is experiencing a severe financial crisis, with a banking system that imposes strict restrictions on cash withdrawals, both in pesos and foreign currency.
For months, banks have been limiting cash withdrawals in CUP, and access to foreign currency is almost nonexistent, according to reports from foreign companies.
Dissatisfaction is growing among foreign companies in Cuba
It doesn't get any easier for foreign companies in Cuba. In April, the Cuban government informed international companies based on the island that they would not be able to repatriate foreign currency from their accounts.
In compensation, he offered to open new accounts with funds deposited from abroad, promising total availability of those resources.
However, many of those accounts have not performed as expected, which has further undermined investor confidence.
Emergency measures in a collapsed economy
In response to the desperate need for foreign currency, the Government has adopted several emergency measures, such as the increasing opening of stores that operate exclusively in dollars and charging for certain services and procedures in foreign currency.
This new episode is part of a long-standing crisis, worsened by the coronavirus pandemic, a lengthy list of failed economic reforms, and the tightening of U.S. sanctions.
The Cuban economy, with a declining national production, relies on imports to cover nearly 80% of domestic consumption, especially for food and fuel.
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