Cuba's New Housing Law 187/2026: What Changes for Property Owners, Foreign Buyers and Investors?

What changed

An in-depth analysis of Cuba's housing reform: ownership, real estate activity, transfers, inheritance, renovation and the legal questions that remain open.

Introduction: from parliamentary approval to published law

The National Assembly of People's Power approved Law 187 “De la Vivienda” on 30 July 2026. On 14 August 2026, Gaceta Oficial No. 67 published Agreement X-178, which approved the law “with a view to its endorsement by the President of the Republic before publication”, and Agreement X-179, which appointed a style commission to review the text. At that stage the law had been approved but not yet published, and it was not in force.

That has now changed. Gaceta Oficial No. 86 Ordinaria, dated 14 October 2026, publishes the full text of Law 187/2026 “Ley de la Vivienda” (GOC-2026-607-O86) together with its implementing package: Decreto 176/2026 (General Regulation of the Housing Law), Decreto 177/2026 (Regulation on Horizontal Property), Decreto 178/2026 (Regulation on Housing Cooperatives) and Resolutions 15/2026 and 16/2026 of the National Institute of Territorial and Urban Planning (INOTU), the first of which sets the procedure for issuing cadastral certificates.

According to its Sixth Final Provision, the law enters into force seven days after its publication in the Gaceta Oficial, which points to 21 October 2026 as the effective date. The three decrees contain the same seven-day rule; Resolution 15/2026 enters into force seven working days after publication. The 90-day period widely reported after the parliamentary vote does not appear in the published text. Law 187 repeals Law 65 of 1988 (Ley General de la Vivienda) and the decree-laws that amended it, including Decreto-Ley 185/1998, 211/2000, 233/2003, 288/2011, 322/2014, 342/2016, 353/2018 and 367/2018.

1. Up to two homes per person

Article 4.1 recognises the right of natural persons to own up to two homes, without prejudice to a vacation or holiday home (“vivienda de descanso o veraneo”) declared as such in its title. Under the previous framework, ownership was in practice limited to one permanent residence plus one holiday home. A holiday home keeps the same rights as any owned home, may be subject to mortgage financing, and its status can be changed by notarial deed and registry entry; the status is lost when the property is transferred inter vivos, but not on inheritance (Article 138).

For families this means that a second home, for example an inherited flat or a home bought for an adult child, no longer automatically conflicts with ownership rules. For the formal market it allows more transactions to be documented legally instead of through informal arrangements. Where an owner may exceed the limit, the municipal housing director opens a file under the procedure set out in the law (Article 4.2).

2. Cubans living abroad

Law 187 is a housing law, not a migration law. The status of Cubans abroad is governed mainly by the 2026 migration framework, and inheritance by the Civil Code and the rules referred to in the housing law. Law 65 has been repealed in full. In our review of the published text we found no provision under which a home is lost because its owner lives abroad; confiscation is mentioned only in other contexts, such as unlawful conduct. Inheritance rules still matter: if an heir renounces a home left free of occupants, or there are no heirs two years after the owner's death, the home passes to the State (Article 88). Its transitional provisions also regulate the position of relatives who still occupy homes whose owners were declared “emigrado” under earlier rules: a spouse, registered partner, former spouse or relative up to the fourth degree of consanguinity or second of affinity who lived in the home for at least five years before the owner left, and who owns no other home, may be recognised as a legitimate occupant.

In practice, Cubans abroad who own property should verify that their title, registry entry and family situation are documented, and should not assume that a historic “emigrado” declaration is automatically reversed. Each case depends on its documents.

3. Foreign buyers, foreign companies and Cuban non-state enterprises

This is the most important point for international clients and the one most likely to be misunderstood. Article 3 defines “natural persons” for the purposes of the law as Cuban citizens and foreigners with permanent residence in Cuba, “with the exceptions set out in Articles 43.2 and 89.1”. The general rules on natural persons therefore apply to permanent residents, while those two articles extend specific rules to other foreign persons.

Article 43.1 defines real estate activity (“actividad inmobiliaria”). It includes (a) investment in new apartment buildings with own resources, collaboration or foreign investment; (b) investment in homes and buildings transferred to the assets of real estate entities (“inmobiliarias”); (c) the purchase and sale of homes and apartments to natural and legal persons; (d) leasing with an option to buy; (e) management and administration of state or private property; and (f–g) advisory and other related services. Article 43.2 states that a foreign natural or legal person who acquires rights over a home by virtue of letter (c), that is, through this real estate activity, also has the obligations set out in the law. Under Article 42.2, homes in real estate developments are governed by the horizontal property rules.

Article 89.1 states that the sale of a home between natural persons, between natural and legal persons and between legal persons, “Cuban or foreign”, is formalised by public deed before a notary in the province where the home is located. Article 89.3 adds that a foreign natural or legal person acquiring a home by purchase has the rights and obligations set out in the law. Article 90.1 requires the price to be paid without cash (see section 4).

Article 91 regulates purchases by legal persons. Municipal administration councils may buy homes for established housing priorities, with exemption from personal income tax (91.1). State and non-state economic entities, state bodies, companies with 100% Cuban capital, mass and social organisations and other legal persons may buy homes from their approved budgets or profits to house their workforce (91.2). Non-state economic entities, such as MiPyMEs, may acquire no more than two homes by purchase, and the limit also counts homes acquired through other forms of transfer (91.3).

The text therefore expressly contemplates acquisitions by foreign persons, and the wording of Article 43.2 points to real estate activity as the channel. It does not say that every foreigner may freely buy any Cuban residential property. The General Regulation (Decreto 176/2026) contains no specific procedure for foreign buyers; in our review it mentions foreigners only in connection with leases without an option to buy (Article 167). Who qualifies, through which entities and on which conditions will depend on further rules and on notarial and registry practice. A foreign company investing in a real estate project remains subject to the foreign investment rules. Holding property does not create residency rights.

What Law 187 does not allow: it does not give foreigners without permanent residence a general right to buy any home on the private market; it does not turn property ownership into a residence title; and it does not replace foreign investment authorisations when the acquisition is made through a company or a real estate project. Nor does it create its own procedure for foreign buyers: the General Regulation (Decreto 176/2026) mentions foreigners only in connection with leases without an option to buy (Article 167). Until notarial and registry practice is confirmed, every transaction involving a foreign buyer must be verified individually.

4. Sales, payment and taxes

Sales are formalised by public deed before a notary in the province where the home is located, at the price agreed between the parties, who may agree any clauses that are not contrary to the law, the social order or the nature of the contract (Article 89). Sales to the State and sales arising from an administrative allocation are handled by the municipal housing directorate instead. The rights to homes still under construction can also be sold by notarial deed (Article 92).

Article 90.1 states that the agreed price is paid “through the instruments or credit titles provided for in banking legislation or any other payment method that is not cash”. The legal requirement is that payment is non-cash; the law does not limit it to a bank transfer. Which instruments notaries will accept as proof of payment in practice, particularly for parties abroad, remains to be seen. Before the sale the seller must prove that any outstanding purchase price has been paid, that the tax has been paid and that the home is registered in the Central Registry of Real Estate Property (Article 90.2).

On taxes, the Fourth Final Provision amends Articles 44 and 203 of the Tax Law (Law 113/2012). For sales, the tax base under the new Article 44 is the transfer price, provided it is equal to or higher than the cadastral value. Under the new Article 203, the cadastral value set by the competent authority is taken into account for homes transferred for any reason, and in an exchange with compensation the base for the party receiving it is the cadastral value plus the compensation. Article 144 of the housing law makes the cadastral value the tax base for property tax and other transfer acts. The housing law does not set the tax rates.

The cadastral value is now calculated under INOTU Resolution 16/2026, which replaces Resolution 173/2022 with new methodologies for urban and rural property. Under that methodology the cadastral value is an administrative value, distinct from market value; it should relate to market value but can never exceed it. Correction coefficients apply in zones with special regulations and for foreign investment. Resolution 15/2026 sets the procedure for cadastral certificates, which under the General Regulation are valid for five years.

In practice, a sale follows a verifiable order: checking the title and the registry entry, proving that no part of the price or tax remains outstanding (Article 90.2), obtaining the cadastral certificate, signing the public deed before the notary of the province where the home is located (Article 89.1) and then registering the transfer. The notary verifies the identity and capacity of the parties and that payment was made by a means other than cash (Article 90.1).

Fewer administrative authorisations do not mean less due diligence. Title defects, undivided inheritances, co-owners who have not consented, unregistered extensions and restrictions on subsidised homes remain the most common reasons why transactions fail or are later challenged.

5. Combining and dividing properties

Merging adjoining units and dividing homes were already possible under previous legislation. Law 187 and its General Regulation keep these as architectural interventions that require the applicable planning and construction authorisations, notarial formalisation and registration; the regulation also sets procedures for compulsory division where several owners are involved (Articles 225 and 226 of Decreto 176). Owners have the right to carry out architectural interventions provided they meet the legal requirements (Article 47 of the law).

For investors this matters in Havana in particular, where combining two flats or converting a large house into separate units can change the value and use of a property. Heritage zones, structural capacity, shared elements in multi-unit buildings and the consent of other owners all need to be checked before buying with such a plan.

6. Buildings declared in a state of ruin

Article 49 allows the owner of a home that has been declared in a state of ruin by the Municipal Directorate of Territorial and Urban Planning to transfer it to a natural or legal person in order to restore its use value, in buildings of up to two levels. In buildings of more than two levels the transfer may be made to a legal person able to take on the full recovery.

This applies only after an official declaration of ruin, not to a building that is merely in poor condition. A buyer or investor needs a structural assessment, clarity about legal occupants, the required rehabilitation permits and, in protected areas, heritage approval. Rehabilitation costs and timelines can be substantial.

7. Horizontal property

Chapter XI and Decreto 177/2026 regulate buildings with private and common elements. An owner has exclusive rights over their apartment and a share in the common elements, which include the land and airspace, structure, façade, roofs, stairs, basements, courtyards, shared installations such as water tanks, pumps and solar equipment, and lifts. The regulation sets majorities for decisions, the participation share of each owner and a monthly contribution for general repairs and common expenses.

For buyers of apartments this means that the condition and management of the building, and future contributions, become part of the purchase decision.

8. Housing cooperatives

Housing cooperatives are recognised as a form of management in which people join voluntarily as members to carry out urban and architectural interventions (Article 35). They are approved on the basis of a project, formalised by notarial deed and governed by Decreto 178/2026. Practical questions about financing, land allocation and the transfer of finished units to members will be answered by how the regulation is applied.

9. Subsidised housing

The published text confirms 15-year restrictions for several categories of state-supported housing. A person who received a subsidy to build their own home must repay the full subsidy if they sell or donate the home within the first fifteen years (Article 53). For homes allocated to people without economic means and built with subsidy funds, the State has a right of first refusal on a sale within fifteen years, and exchanges or donations require authorisation (Article 54). Similar protections apply to homes allocated to parents with three or more children (Article 55). The restriction is recorded in the official documents, so it should be checked in the title before any purchase.

10. Inheritance and donations

Inheritance is governed by the Civil Code and by the rules referred to in the housing law. Three rules of Law 187 are especially relevant. First: if an heir renounces a home left free of occupants, or if two years after the owner's death there are no heirs, the home passes to the State (Article 88). Second: the status of a holiday home is not lost when the transfer occurs by inheritance, unlike transfers inter vivos (Article 138). Third: donations of homes built with a state subsidy within the first fifteen years require repayment of the subsidy or authorisation, depending on the category (Articles 53 and 54).

Apart from those special restrictions, Article 99 regulates ordinary donations of homes, which are formalised by public deed before a notary. As with a sale, the title, registry entry and the situation of any occupants should be checked before accepting a donation.

For heirs living abroad, the practical key is documentation: a will or declaration of heirs, a registered title and clarity about occupants. The law's transitional provisions also regulate the recognition of relatives occupying homes whose owners were declared “emigrado” under earlier rules, with a five-year period to request the transfer in the cases expressly provided for; this is not a general deadline applying to every inheritance or emigration case.

Who it affects

Property owners and heirs · Cubans living abroad with property or family homes in Cuba · Buyers and sellers · Foreign permanent residents · Foreign companies and investors in real estate projects · Private companies (MiPyMEs) acquiring homes · Renovation and construction projects · Owners in apartment buildings

What it means in practice

11. The housing crisis and economic reality

The law responds to a serious housing deficit and a deteriorating building stock. Legal flexibility alone does not solve shortages of construction materials, limited financing, unstable electricity and water supply, or limited administrative capacity in notaries, registries and planning offices. In the short term, the main effect is likely to be on the formal transfer and regularisation of existing homes rather than on new construction.

12. Practical guidance for owners and investors

Before relying on the new law in a transaction, check:

• Title deed and the owner's identity, including all co-owners and spouses
• Registration in the Central Registry of Real Estate Property and any annotations
• Inheritance status if a previous owner has died
• Building permits and whether extensions are legally recognised
• Cadastral certificate (valid for five years) and the cadastral value under Resolution 16/2026
• Structural condition, and any declaration of ruin
• Subsidy restrictions, rights of first refusal or other recorded limitations
• Horizontal property obligations and the condition of the building
• Payment route: non-cash only, through banking instruments or credit titles or another lawful non-cash method (Article 90.1)
• Taxes on the transfer for both parties

13. When does Law 187 enter into force?

The law was approved on 30 July 2026, its approval was published on 14 August 2026 (Gaceta Oficial No. 67), and the full text was published in Gaceta Oficial No. 86 Ordinaria, dated 14 October 2026. Under its Sixth Final Provision it enters into force seven days after publication, that is, on 21 October 2026. Decretos 176, 177 and 178/2026 also take effect seven days after publication, and INOTU Resolution 15/2026 seven working days after publication. Until then, the previous framework continues to apply. The earlier reported 90-day period is not in the final text. INOTU Resolution 16/2026 on cadastral valuation also enters into force seven days after publication.

CPS note

14. CPS analysis and conclusions

For existing owners, the law offers clearer rules on owning a second home, on transfers and on regularising situations that were long informal. For Cubans abroad, Law 65 and its emigration-related rules have been repealed, but the new law does not automatically resolve historic cases, which must be reviewed on their documents.

For foreign buyers and investors, the most significant change is that the text expressly refers to purchases by Cuban or foreign persons and to real estate activity involving foreign investment. This creates potential new routes, but they are not yet tested in practice. We advise against treating any purchase as possible until the specific channel, notarial practice, registry treatment and payment method have been confirmed for the case at hand.

Renovation and redevelopment, particularly of buildings declared in ruin and of apartment buildings under the new horizontal property rules, may become more feasible. The risks remain real: title defects, heritage restrictions, construction costs, energy and supply constraints, and the separate question of U.S. sanctions for clients and banks subject to them.

What owners and investors should do now: put title, registry and inheritance documents in order; obtain cadastral and structural information; avoid cash or informal arrangements; and have each transaction reviewed against the published text and its regulations.

Questions that remain open

How notaries and registries will apply Articles 43.2 and 89 to foreign buyers, and which entities may sell to them; which non-cash instruments notaries will accept as proof of payment, particularly for parties abroad; how the new cadastral values will compare with agreed prices; how quickly municipal offices can process transfers, divisions and ruin declarations; and how monthly contributions in apartment buildings will be set and enforced.

Conclusion

Law 187/2026 could substantially change the Cuban housing market. Its real impact will depend on how the law and its regulations are applied in practice. Cuba Property Solutions provides practical guidance and coordination, not binding legal opinions; transactions should be reviewed by a qualified Cuban notary or lawyer.

Do you need help verifying the legal situation of a property or carrying out procedures in Cuba? Cuba Property Solutions can assist you directly on the ground.

Official source: Gaceta Oficial de la República de Cuba, No. 86 Ordinaria, 14 October 2026; Agreement X-178, Gaceta Oficial No. 67, 14 August 2026.

Last verified: 17 October 2026