Cuba Announces Rules For Foreigners Who Buy Real Estate On Island

The Cuban government announced on Wednesday that it would establish a renewable, one-year residence visa for foreigners who buy or lease real estate there. The move follows the passage of a reform in March which made ownership of property in Cuba legal for noncitizens. http://www.elnuevoherald.com/2014/05/21/1753770/crean-visa-temporal-para-los-extranjeros.htmlEl Nuevo Herald notes that the law, set to go into effect in June, comes as Cuba looks to attract foreign investment in order to fund new developments in tourism, including golf courses and a complex of condominiums near the resort of Varadero.

Those who have the new visas – including spouses and family members of real estate owners -- will be able to renew them indefinitely. They’re liable to be withdrawn if the individual gives up their stake in property, for “conduct that violates the Constitution”, or for spending more than a year outside of the country without entering it. Café Fuerte notes that the creation of the new visa comes on the heels of a reform announced earlier this week by which Cubans residing outside of the country will no longer have to pay a 200 CUC (or $200 dollar) fee to re-enter.

Foreigners hoping to buy a building in Old Havana should look elsewhere, though -- El Financiero writes that the new law won’t apply to all types of real estate, but rather “residence complexes build and administrated by authorized Cuban entities, for the purpose of selling or renting housing,” according to the text of the law. The reform comes a few years after the passage of a law which made it legal for Cubans to buy and sell houses for the first time in five decades.