Known for its rich culture, historic charm, vibrant music, and tropical lifestyle, Cuba offers a truly unique experience for expats looking to immerse themselves in a slower pace of life.
In this guide, we’ll walk you through everything you need to know about relocating to Cuba from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
TaxPilot recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
Cuba follows a residence taxation model. If you are resident, you will pay tax worldwide incomes. If you are non-resident, you will pay tax on local incomes only.
if you are present in Cuba on more than 182 days during the tax year.
Providing that you are considered non-domiciled, foreign incomes and gains will be exempt from Cuba taxation. Cuba can be a very tax efficient place to live in and as such, Global Tax Consulting recommends seeking personalized tax planning advice to take advantage of the special tax regime.
Exempt from Cuba taxation.
Must be non-domiciled.
Tax on property and share sales
Tax on value of owned assets
Tax on assets passed to heirs
Tax to contribute to state welfare
If you receive incomes overseas while you are living in Cuba, you may find the source country, as a starting point, continues to tax the income which may cause double taxation unless you are using special tax regime.
Double taxation agreements can be used to mitigate double taxation and receive tax free income. As such, the more double taxation agreements a country has, the better, as agreements will ensure you’re not taxed twice and even better, ensure your income is tax free.
At present, Cuba does not have any double taxation agreements signed.
