New calculation of property value from May 11th on

purchase,sale,housing,properties,real estate,value,Tax System
HAVANA, May 12 The purchase and sale of housing increased considerably in Cuba.  The announcement of the  establishment of a benchmark value for taxation, which takes effect on Thursday, May 11.

This led to the fact that in the last month several websites in Cuba aimed at promoting the sale of housing, have been filled with various “offers” related to the deadline that marked Thursday.

Homeowners and brokers have had a lot of movement in the last month and it has also been felt the vortex in the Notaries, where they have even had to extend the working hours in order to meet the growing demand for paperwork in the real estate sector.

We must remember that the Official Gazette No. 16 Extraordinary of April 11, 2017 declared that the purpose of this new legislation:

“To achieve greater correspondence with the real values ​​of transmission of the houses, to counter evasive behaviors and to strengthen the mechanisms of tax control”.

As Juventud Rebelde points out today in an extensive article:

“For this purpose, Act 113 of the Tax System is amended, which makes it clear that for the purchase and sale of houses, the taxable base is constituted by the transfer price of this, provided that it is equal to or higher than the established minimum reference value By the Ministry of Finance and Prices (MFP), or if it were not, it will be constituted by said value.

How is the referential value of a home calculated?

The Gazette of April 11, 2017 contains the tables with the different reference values for properties and also a calculation of the taxes according to these sums.

However, it is important to know the methodology used to determine these figures. Consideration should be given to “conditions such as the geographical location of the dwelling, construction characteristics and housing typologies, as well as the number of bedrooms and the possession of a garage, parking fence, patios or gardens.”

Below we reproduce the tables that will serve as a basis for the calculation of the referential value of housing in Cuba as of this Thursday.