In depth
Real-estate tourism in Cuba: what the model allows, who can take part and how to check a project
Real-estate tourism is the term Cuba uses for a model in which resort complexes include homes that can be sold or leased to foreigners, alongside golf courses, marinas and hotels. It was authorised to attract investment and foreign currency, and it has produced announcements, brochures and a handful of completed projects. This guide explains how the model is meant to work, the rights a buyer receives, the approvals involved, the track record, and how to check any project you are offered. It is information only and not an offer.
The idea behind the model
Resorts earn money from rooms and services, but they can also earn by selling or leasing residential units. Many Caribbean and Latin American destinations use this approach, with branded residences next to hotels. Cuba considered the idea for decades and authorised a limited version in the 2010s. The attraction for the state is investment, foreign currency and the creation of resort infrastructure by private developers. For buyers, the attraction is the possibility of a holiday home in a country where property ownership by foreigners is otherwise restricted.
Policy documents describe the model as part of the tourism strategy, and the legal basis lies in the foreign investment law and its regulations, with specific rules for such projects.
What a buyer receives
In these projects, the land remains with the state. A developer receives a right of surface, which allows it to build and to transfer rights over the buildings for the duration of the right, and buyers acquire from the developer a right that is limited in time. The duration can be long, in some cases up to ninety-nine years, but it is not the same as freehold ownership. At the end of the term, the position depends on the contract and law.
A prospective buyer should read the instrument that creates the right, check its term, understand any restrictions on resale, inheritance and use, and ask how disputes are resolved. Without these documents, a description such as owner or title is meaningless.
Approvals required
Each project needs approval from the authorities responsible for foreign investment, tourism, planning and the environment. The approval specifies the developer, the land, the number and type of units, the infrastructure and the conditions for sale. Marketing of units before approval is a warning sign. A buyer should ask for the approval document and verify it with the relevant ministry.
Registration of the buyer's right in the property registry is also needed. A buyer should confirm what registration will be provided and when, and what evidence is given in the meantime.
Who can take part
Eligibility depends on the nationality and residence of the buyer and the rules of the project. A foreigner may be allowed to buy in an approved project, while a Cuban resident might be subject to different rules. For people subject to United States jurisdiction, the Cuban Assets Control Regulations prohibit most transactions of this kind unless authorised. Other countries may also impose limits. The rules should be checked with the competent authorities and a lawyer.
The track record
Public announcements about real-estate tourism projects have outnumbered completions. Several golf and residential developments were announced in the 2010s, with a small number of buildings reported as finished. The reasons given in press reports and by analysts include financing difficulties, the pandemic, changes in policy and obstacles in procurement and construction. Because information is limited, a reader should not assume that a project shown in marketing materials exists in the form shown.
A practical test is to look for independent evidence: photographs from visitors, reports in the press, statements from the authorities, and whether the developer can show completed units and satisfied buyers.
Ongoing costs and risks
Owning a unit in a resort brings recurring costs: maintenance fees, utilities, insurance and local charges. Hurricane risk is real, and insurance for property in Cuba can be difficult to obtain. Rental of units to tourists is regulated, and operators may take a share. The reliability of services such as electricity and water affects enjoyment. A buyer should ask for the cost schedule and the history of the project's services.
This page does not sell, list or recommend any project, and is not legal or investment advice.
Fractional ownership, timeshares and caution
Resort real estate is sometimes sold in shares of time or of ownership, such as timeshares, vacation clubs and fractional ownership. In these schemes, buyers purchase the right to use a unit for a number of weeks a year or a share of a property. They can offer convenient holidays, but consumer agencies receive many complaints about misleading sales, high maintenance fees, difficulty of resale and cancellation. Rules for such products differ between countries, and cooling-off periods exist in many places.
Anyone offered a vacation-club membership or fractional share linked to Cuba should ask for the legal documents, check the seller's registration and understand how to exit. If pressure is applied, step back.
Golf-linked residential projects
Golf communities combine houses with a course, clubhouse and services. Their economics rely on selling lots or villas and on the continued upkeep of the course, which is expensive. Around the world, many projects have struggled when sales slowed, leaving buyers with unfinished amenities. A prospective buyer should examine who owns the course, who pays for its maintenance and what guarantees exist.
Resale, liquidity and exit
Buying a resort home is easier than selling one. The pool of potential buyers is limited, restrictions may apply to resale, and the process may require approvals. In Cuba, where rights over buildings on state land are of limited duration and subject to state rules, resale conditions must be clear. Ask whether the right can be transferred, to whom and with what consent, and what happens if the project is delayed or stops.
This page does not sell resort properties or memberships.
Taxes and reporting for foreign owners
Owners of foreign property often face tax and reporting obligations in their home country, such as reporting foreign assets and income. The rules depend on nationality and residence, and failure to comply can lead to penalties. Anyone considering an overseas property should consult a tax adviser familiar with their situation and with the rules on sanctions.
Questions to put to a developer
A prospective buyer in an approved project can ask a developer a structured set of questions. What is your authorisation, and may I see it? What rights will I receive, for how long and can I transfer them? What is the total price and what is included? What are the payment stages and are funds protected until delivery? What is the construction schedule and what happens if it slips? Who manages the project after completion and what will I pay? What have you built before and may I visit? What insurance exists? What happens at the end of the term? Clear, written answers are essential, and evasive ones should worry you.
Visit completed projects of the developer if possible, and talk to existing owners about their experience. Independent confirmation matters more than any brochure.
Why projects get delayed
Delays in tourism real-estate projects have many causes. Approvals take longer than planned. Imported materials arrive late, and local supplies are short. Financing is slow. Weather interrupts work. The pandemic disrupted supply chains and travel. Contractors face shortages of labour or equipment. A developer's schedule should therefore include margins, and buyers should be wary of fixed dates in marketing.
Protecting payments
Buyers who pay in stages should seek protections. Payments should be tied to milestones, held in escrow or a similar arrangement where possible, and recorded with receipts. A contract should say what refund is due if the project does not proceed. Avoid paying large sums for a promise. In markets with weak protections, the buyer's best defence is to pay little and late.
This page does not sell units.
Hurricane and insurance considerations for resort real estate
Resort real estate on the coast faces storms, and insurance is a central issue. Policies for buildings may cover wind damage, with deductibles, but coverage of flooding or storm surge may be limited. Insurers assess risk by location, construction and past claims. Owners should understand what is covered and how claims are paid. In some markets, insurance for foreign owners is hard to obtain, and the absence of cover increases the risk.
Buildings designed to modern wind standards, with impact-resistant openings and well-anchored roofs, reduce damage. Ask developers about design standards and compliance.
Estate and succession questions for foreign owners of Cuban rights
Anyone holding long-term rights in a Cuban project should think about what happens on their death. Can the rights be inherited, and by whom? Does the contract allow transfer to heirs? What formalities are needed? What taxes apply? How do the rules of the owner's home country interact? Clear provisions in the contract and a will drawn up with advice in both jurisdictions prevent disputes among heirs.
Seeing a completed project with your own eyes
If an operator or developer claims past success, ask to visit completed projects, speak to residents and check how they are maintained. Look at cracks, damp, finishes, common areas and the behaviour of services. Ask owners about fees, surprises and the quality of management. Evidence on the ground is worth more than any brochure.
Common questions
- What is real-estate tourism?
- A model in which resorts include homes that can be sold or leased, within projects approved by the state.
- Do buyers get freehold?
- No. They receive a right of limited duration over buildings on state land.
- How can I verify a project?
- Ask for the approval, the instrument creating the right and registry evidence, and check them with the authorities.
- Can US persons buy?
- Most such transactions are prohibited unless authorised. Check the Treasury rules.
- Do you sell units?
- No. This page is information only.
- Are real-estate tourism projects open to Cuban buyers?
- Eligibility is set by each project's rules and the law. Ask the developer and verify with the authorities.
- Do owners get a share in hotel profits?
- Not automatically. Rental pools or revenue-sharing arrangements are contractual and vary. Read the terms.
- What are the main risks?
- Delays, limited rights, unclear resale, hurricanes, service reliability and sanctions. Weigh them before committing.
- Can projects be cancelled after sales begin?
- Yes. Delays, financing problems or policy changes can stop projects. A contract should say what happens to buyers' payments in that case, including refunds, interest and security. Without such terms, buyers risk loss.
Official sources and where to go next
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