Cuba Imposes New Tax Rates on Vehicle Sales: 35% for Luxury Cars, 5% for Electric Vehicles

The Cuban government has introduced a revised tax structure for vehicles sold in foreign currency, with rates ranging from 35% for luxury cars to 5% for imported electric vehicles. Cars assembled within Cuba will face lower taxes, and some may even be completely exempt.

This new taxation framework is detailed in Resolution 172/2026 issued by the Ministry of Finance and Prices, which was published in the Official Gazette on Tuesday. It is part of a broader set of regulations governing the purchase, sale, and importation of vehicles in Cuba.

The Special Tax on Products and Services will be levied on authorized commercial entities for sales conducted in U.S. dollars or equivalent convertible currencies. This tax will be calculated based on the sales price and added to the vehicle's final cost.

Tax Breakdown for Imported Vehicles

For imported vehicles, the tax rates are as follows:

• Luxury and high-end cars, including combustion or hybrid: 35%
• Standard cars, rural vehicles, and pickups with combustion engines: 25%
• Motorcycles, tricycles, panels, trucks, and tractor units with combustion engines: 20%
• Buses and minibuses with combustion engines: 12%
• Hybrid vehicles, including those with range extenders, except luxury cars: 15%
• Fully electric vehicles of any type: 5%

Reduced Rates for Locally Assembled Vehicles

The resolution sets lower tax rates for vehicles manufactured in the Cuban industry:

• Cars, rural vehicles, and pickups with combustion engines: 20%
• Motorcycles, tricycles, panels, trucks, and tractor units with combustion engines: 10%
• Buses and minibuses with combustion engines: 7%
• Any type of hybrid vehicle: 5%
• Fully electric vehicles: 3%

Electric vehicles assembled by authorized entities will be exempt from the special tax if sold with a charging station powered by renewable sources that ensure complete coverage.

The resolution also allows for the exemption of other electric vehicles sold with corresponding renewable charging stations, subject to certification by the National Office for the Rational Use of Energy.

Consequently, an imported electric car will generally incur a 5% tax, while one assembled in Cuba will face a 3% tax, but both may qualify for exemption if they meet the established energy conditions.

Imported trailers and semi-trailers will be subject to a 15% special tax, while those assembled in Cuba will incur a 5% tax. Light trailers weighing up to 750 kilograms manufactured domestically will be tax-free.

Minimum Tax Amounts for Used Vehicles

The regulation also stipulates minimum tax amounts for imported used vehicles sold by commercial entities. These minimums apply when the calculated percentage is less than the fixed minimum value.

• Used cars: Minimum $3,000
• High-end used cars: Minimum $5,000
• Used rural vehicles: Minimum $3,000; high-end: Minimum $5,000
• Minibuses and pickups: Minimum $3,500
• Mopeds: $80; Motorcycles: $100; Tricycles: $150
• Panels: $3,000
• Trucks, buses, and tractor units: $3,500
• Trailers and semi-trailers: $1,000

For used electric vehicles, the minimum special tax will be 50% of the established value for its category. For instance, a used electric car would have a minimum tax of $1,500 unless an applicable exemption is in place.

These taxes should not be confused with customs duties related to the direct, non-commercial importation of an electric car by an individual.

Previously announced, this mode allows Cubans to directly import electric cars with fixed charges ranging from $500 to $2,000 if the vehicle does not include a renewable charging station.

Furthermore, vehicles designated for the Economic Plan, Defense agencies, the state tourism rental system, certain insurance-covered replacements, diplomatic representations, and other social purposes approved by the Council of Ministers will be exempt from the special tax.

Individuals authorized for state missions abroad to import or purchase a vehicle with up to eight seats in Cuba will also be exempt from the special tax for this one-time operation.

Funds generated from these taxes and customs duties will be allocated to the Public Transport Development Fund, managed by the Ministry of Transportation.