New Regulations Transform Vehicle Ownership Transfer in Cuba: Inheritance, Sales, Donations, and Swaps

The recently approved set of regulations by the Cuban government not only alters who can purchase and import vehicles but also brings significant changes for those wishing to sell a car, inherit one, donate it to a family member, or exchange it through a swap.

These new guidelines are outlined in Decree 163/2026, published this Tuesday in the Official Gazette, replacing the legal framework in place since late 2024. While CiberCuba has already covered the broad impact of the automotive market reform, we now delve into the specific changes concerning the transfer of ownership among individuals.

Expanded Eligibility for Vehicle Transfer

The decree governs the transfers through sales, inheritance, swaps, and donations, additionally setting new notarial, tax, and registration obligations for those involved in these transactions.

The decree explicitly expands the range of individuals authorized to participate in these transactions. Both natural Cuban citizens and foreigners with permanent, temporary, real estate, provisional, or humanitarian residency in Cuba, as well as certain authorized non-state Cuban and foreign legal entities, can buy, sell, donate, swap, or inherit vehicles. State entities will continue to follow specific regulations for vehicle transfers.

All transactions must be formalized before a public notary. However, one of the most significant changes is the requirement for the buyer to submit an affidavit certifying that the money used is of lawful origin and detailing the number of vehicles owned.

Monetary Transactions and Tax Adjustments

The decree stipulates that payments can be made in Cuban pesos, US dollars, or other convertible currencies, but cash payments are prohibited. Transactions must be conducted using instruments authorized by the Central Bank of Cuba.

All property transfers will still be subject to the Property Transfer and Inheritance Tax and, when applicable, the Personal Income Tax. The difference now is that the Ministry of Finance and Prices has set new minimum reference values for calculating these taxes.

For instance, the minimum reference value for a car less than five years old is set at 2,040,000 pesos, while a vehicle over 15 years old is valued at 510,000 pesos. For motorcycles and tricycles, the minimum values range between 265,000 and 66,250 pesos, depending on the vehicle's age.

The resolution also allows that when transactions are formalized in US dollars or another convertible currency, taxes can be paid in either foreign currency or Cuban pesos, applying the official exchange rate.

30-Day Registration Deadline

After completing a sale, donation, inheritance, or swap, the new owner will have 30 days to register the transfer with the Vehicle Registry of the Ministry of the Interior corresponding to their residence. The necessary documents include ownership documentation, circulation license, and proof of paid taxes.

Addressing Absentee Vehicle Owners

The decree also seeks to address common issues involving vehicles whose owners have emigrated without formally transferring ownership. The regulation stipulates that the owner can execute the transfer personally or through legal representation. If the owner has passed away, the process must follow the general rules of succession law, with the option to go to court if extrajudicial resolution is not possible.

A Broader Overhaul of the Automotive Market

These changes are part of a broader package of measures approved by the government to reform the vehicle market in Cuba. The new Decree 163 repeals Decree 119 of 2024 and also introduces new rules for importing, commercializing in foreign currencies, vehicle assembly by authorized entities, and promoting electric mobility.

Through these provisions, the regime aims to reorganize the automotive market and establish new controls over transactions between individuals, incorporating stricter documentation, banking, and tax requirements for each property transfer.