Cuba legalizes the Purchase of Cars in the private market

Cuban officials legalized the sale and purchase of automobiles for all citizens and foreigners with permanent residence in Cuba. Formerly, private individuals were only entitled to purchase cars that were manufactured before the 1959 revolution.

However, the sale and purchase of cars is still subject to strict provisions. Under the states new law citizens can buy all models and years while it is also now legal to own more than one car. The total number of transactions of used cars is limited to 5.000 cars per year. Furthermore, the provision of evidence of the source of funds is required. Both parties are subject to tax on the transaction at a rate of 4%. Taxable base is the purchase price or a higher minimum value, which depends on the age of the car.

The importation of used cars by foreign traders is not allowed. In this context nothing has changed. The only contractual partner in international trade activities can be the Cuban state, that may resell such cars via its own sales agents.