Cuban Government to Deduct Up to 20% of Wages for State-Provided Housing: Payments Could Last 30 Years

The Cuban government has officially enacted a new policy that allows for up to 20% of the salary to be deducted from citizens who receive housing provided by the state. This payment plan could potentially extend over a period of 30 years, according to a resolution by the Council of Ministers published this Tuesday in the Official Gazette.

This measure, originally approved on March 14, 2025, finally takes effect following its official publication on February 4, 2026, almost a year later. It comes amidst a severe housing crisis impacting thousands of Cuban families living amidst collapses, shelters, and dilapidated homes.

According to the document, state-built houses or those available through municipal governments can be allocated under ownership, lease, or usufruct arrangements, depending on the beneficiary's "ability to pay" and the established priority order.

For property allocation, the government permits payments to be made in monthly installments not exceeding 20% of the owner's income. The payment period can extend up to 30 years, taking into account the beneficiary's age and financial capacity.

The agreement notes that beneficiaries can make advance payments, but warns that "unjustified" non-compliance will be dealt with according to current legislation, potentially resulting in loss of housing rights.

For those with low income, the state considers a leasing option, with payments calculated at 10% of the salary if the 20% deduction would "sacrifice basic needs."

In more severe cases, the regime may provide housing under usufruct, a status that does not confer ownership and is applied when an individual cannot afford "any deduction" from their income.

The policy also states that if a usufruct or lease beneficiary improves their income, they can request a status change to pay for the property as an owner, with previous payments deducted from the total cost.

Amidst a Housing Collapse

This announcement arrives in the context of a rapidly deteriorating Cuban housing stock. Various reports estimate the country faces a deficit of nearly one million homes, with hundreds of thousands needing construction or rehabilitation, while building collapses in Havana and other provinces become a daily occurrence.

The government has acknowledged the severity of the issue in recent years and has established regulations requiring beneficiaries to pay for state-provided housing through monthly payments calculated based on family income.

Since 2019, the Council of Ministers decreed that the transfer price of state housing would be equivalent to the budgeted construction cost, with priority given to those affected by disasters, social cases, and families in dire conditions. However, for many Cubans, the reality remains unchanged: long waiting lists, endless bureaucracy, and a chronic shortage of resources.

Linked Housing and Decades-Long Payments

The new agreement also ties into previous regulations regarding so-called linked housing to state employment centers, which could be transferred to tenants after years of payments.

According to procedures published on official platforms, transferring ownership of linked housing requires having paid a total of 180 monthly installments, equivalent to 15 years of payments, in addition to meeting labor and legal requirements.

Now, the government broadens the framework for state housing in general, setting much longer terms—up to 30 years—which for many Cubans signifies a financial burden in a country where state wages remain insufficient to cover even basic monthly food expenses.

Can Cubans Afford State Housing with Their Salaries?

Although the measure is presented as a "flexibility" to facilitate housing access, the reality is that for a significant portion of the population, a 20% salary deduction could be the final blow to family economies already suffocated by inflation, scarcity, and the soaring cost of basic goods.

In Cuba, where many families rely on remittances or the informal market to survive, the announcement reignites an inevitable debate: who can truly afford state housing on a Cuban salary? And, perhaps more crucially, how many Cubans can wait three decades to genuinely claim ownership of the home they live in?