The Cuban government has recently announced a tax exemption of up to eight years for both individuals and companies investing in renewable energy systems. This initiative is outlined in Resolution 41/2026 by the Ministry of Finance and Prices, which was published this Thursday in the Official Gazette.
According to the resolution, those investing in renewable energy generation technologies can be exempt from paying Personal Income Tax or Corporate Tax for a period necessary to recoup their investment, with a maximum limit of eight years.
This benefit is not automatically granted to all; it is allocated based on the amount invested and the approved recovery time. To qualify for the exemption, investors must obtain an energy certificate from the relevant authority confirming the operational status of the installed system and submit their application to the National Office of Tax Administration.
The tax authorities reserve the right to revoke the exemption if the requirements are not met. Furthermore, the resolution extends customs tax exemptions for importing photovoltaic solar systems, wind turbines, biogas digesters, solar pumps, and other equipment for electricity generation with renewable sources, including their parts and components.
For individuals, these items will not count towards the limit for non-commercial imports, provided they are presented separately at customs and are included in the approved list by the regulation, adhering to current technical formalities and controls.
The regulation also mandates that renewable energy technologies be sold at non-revenue-generating prices, based on costs and expenses with a capped profit margin. Notably, electric vehicles and their parts are expressly excluded from this pricing scheme.
In addition to promoting self-consumption, the resolution permits those installing renewable energy systems to supply energy to the National Electric System, paving the way for grid connection schemes—a topic the regime had previously discussed.
This measure comes amidst an energy crisis characterized by prolonged blackouts and fuel shortages. The state aims to encourage decentralized investments that contribute to electricity generation and alleviate pressure on the National Electric System.
Key Aspects of Cuba's Renewable Energy Tax Exemption
What is the duration of the tax exemption for renewable energy investments in Cuba?
The tax exemption can last up to eight years, depending on the amount invested and the time needed to recover the investment.
What requirements must be met to qualify for the tax exemption in Cuba?
Investors must obtain an energy certificate from the competent authority and submit an application to the National Office of Tax Administration.
Are electric vehicles included in the renewable energy tax exemption in Cuba?
No, electric vehicles and their parts are specifically excluded from this tax exemption and pricing scheme.