The Cuban regime published this Tuesday in the Official Gazette a legislative package that comprehensively reforms the rules regarding the buying, selling, importation, and assembly of vehicles on the island, with explicit preferential treatment for electric cars, including the possibility to import them directly with a fixed tariff.
The central instrument is the Decree 163/2026, signed by Prime Minister Manuel Marrero Cruz, which repeals the previous regulations approved in late 2024 and expands the regulatory framework to adapt it, according to its own considerations, "to the current economic context" and to the policy of transforming the country's energy matrix.
One of the most significant updates is that Customs establishes fixed tax quotas based on the declared value of the electric vehicle, instead of applying a percentage of its price.
The table published in the Gaceta sets the following amounts:
- up to 10,000 dollars: 500 dollars in tax;
- more than 10,000 and up to 20,000 dollars: 1,000 dollars;
- more than $20,000 and up to $30,000: $1,500;
- more than 30,000 dollars: 2,000 dollars.
The regulations also include incentives for electric mobility. Among these is a preferential tax treatment for certain electric vehicles and for those imported alongside charging infrastructure based on renewable energy sources, such as solar panels, as part of the official strategy to promote the electrification of transportation.
Electric vehicles assembled in Cuba also receive tax benefits, as they are exempt from the special sales tax, a levy that can reach high percentages of the commercial value for other vehicles.
Both Cuban citizens and foreigners residing in the country will be able to purchase new or used vehicles from licensed commercial entities. Payments must be made in U.S. dollars or other freely convertible currencies using the instruments authorized by the Central Bank of Cuba.
The decree also establishes a progressive tax starting from the third vehicle purchased by the same individual or legal entity, in the categories of motorcycles, cars, and rural vehicles.
Another relevant element of the package is the Decree-Law 122/2026 from the Council of State, which amends the Road Safety Code to authorize the assembly of vehicles from legally acquired parts, an activity previously reserved exclusively for state entities.
The new wording of the amended article establishes that "the manufacturing and assembly of motor vehicles, trailers, and semitrailers is authorized, based on the lawful acquisition of their parts and components, as determined by the Council of Ministers, in order to ensure the quality and safety of their operation."
This opening allows mixed entities—both state and private—to participate in the local assembly industry, in accordance with previous decrees regarding the Cuban business system.
The legislative package also includes resolutions from five agencies: the Ministries of Finance and Prices, Domestic Trade, Foreign Trade, and Transportation, as well as the General Customs of the Republic.
Among its objectives, Decree 163/2026 explicitly mentions "the introduction of electric vehicles or other Renewable Energy Sources, in the interest of transforming the country's energy matrix," a priority for the regime amid the severe energy crisis faced by the Cuban population.
The regulation also establishes a Fund for the Development of Public Transport and regulates the technical decommissioning, dismantling, and recovery of vehicles, as well as the marketing of spare parts and accessories.
The announcement comes weeks after the government revealed in June that it would expand the direct importation of electric cars by individuals, with tariff priority for those who import solar charging equipment simultaneously.
The entire regulatory package comes into effect seven days after its publication in the Official Gazette, which establishes its effective implementation starting Tuesday, August 11, 2026.
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