Cuba (CU)

Cuba is a unique socialist island nation of 11 million people in the Caribbean — a country of vintage American cars, world-famous cigars, Havana salsa, colonial architecture, and extraordinary natural beauty.

Capital: Havana

Region: Americas

Language: Spanish

Currency: CUP ($)

Cost of living: Very affordable (index 20)

Emergency: 106

Tax & Payslip Guide

Understanding your taxes in Cuba — tax year January 1 – December 31.

📅

Tax Year

January 1 – December 31

⏰

Filing Deadline

April 30 (following year) for TCP self-employed; state sector workers have automatic deduction

🧾

VAT (Standard)

10% (Impuesto sobre las Ventas — IS)

📊 Income Tax Brackets

Income from	Income to	Rate	Notes
0	10,000	0%	No tax — basic exempt threshold for small TCP earners (2026 estimates in CUP)
10,001	50,000	15%	Low income bracket for self-employed (TCP) workers
50,001	100,000	20%	Mid-range bracket
100,001	250,000	30%	Upper-mid bracket
250,001	∞	50%	Top bracket for high-income private sector earners — applicable to profitable MIPYMES and successful TCP operators

🏛️ Social Contributions

Seguridad Social (Social Security)

Employee: 5%

Employer: 14%

Mandatory for all TCP self-employed workers. Covers retirement pension, disability, and maternity. TCP workers pay a combined rate assessed on declared income. State sector employees have contributions automatically deducted.

Seguro de Salud (Health Insurance)

Employee: Included in social security

Employer: State-funded for Cuban residents

Cuba's state healthcare is free for Cuban citizens and residents. Foreigners pay via Servimed/Asistur (private medical service for foreigners). No separate health insurance premium system for Cuban workers.

MIPYMES Contributions

Employee: Per salary scale agreed with MTSS

Employer: 14% social security on payroll

MIPYMES (private businesses licensed since 2021) pay social security contributions on behalf of employees. Rates set by Ministerio de Trabajo y Seguridad Social (MTSS).

🛒 VAT Rates

10% (Impuesto sobre las Ventas — IS)

Standard

5% (basic necessity goods, agricultural inputs) / 0% (basic food ration items, medicine)

Reduced

🧾 Sample Payslip Decoder

Gross Salary Example: Employee at private MIPYME, 20,000 CUP/month gross (~$100 USD)

Gross salary (Salario Bruto) + 20,000 CUP

Social security (Seguridad Social — employee 5%) - -1,000 CUP

Income tax withholding (estimated at 15% after basic exemption) - -1,500 CUP

Net Salary (Take-home) ≈ 17,500 CUP/month (~$87 USD at informal rate)

State sector salaries are paid entirely in CUP at very low USD-equivalent values ($20–60 USD/month). Private sector (MIPYMES) and joint ventures often pay a base CUP salary plus informal hard-currency supplements. The effective purchasing power depends heavily on whether you can access MLC stores or the informal USD economy. All CUP salary figures shown are indicative — exact deductions depend on declared income base and ONAT assessment.

🌍 Special Expat Tax Rules

Cuba does not have a comprehensive expat tax regime for foreign residents. Foreigners employed by joint ventures or international organisations often receive hard-currency stipends that are handled outside the standard CUP tax system. Tax treaties are limited. Income earned outside Cuba by foreign residents visiting on tourist cards is generally not taxed by Cuban authorities, but this is a grey area without official published guidance.

📋 Double Tax Treaties

Cuba has double taxation agreements with a limited number of countries including Russia, Canada, Italy, Spain, China, and several Latin American nations. Cuba does not have a DTA with the United States.

ONAT (Oficina Nacional de Administración Tributaria)

https://www.onat.gob.cu

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