Cuba to Doll Out Farm Land And Tax It

September 29, 2017 Taxation in Cuba

Cuba taxing farmsHAVANA – Cuba hopes to wean itself off its reliance on foreign nations for food and money by granting more land to farmers, and then taxing them on it.

Last week the government of Cuba unveiled a series of new rules regarding land ownership and the gradual implementation of taxes on land ownership.

The new rules are aimed at simultaneously boosting the country’s ability to grow its own foods, while also increasing tax revenues.
Currently, the government doles out idle land to private citizens or entities, if the land will be used for food production.

Under the new rules, the land given to farmers will now be granted for a period of 20 years, instead of the previous period of 10 years, and, further, the lease on the land will be renewable upon expiry.

The amount of land granted for agriculture will be doubled to 26.84 hectares, with the amount of land for dairy raising to be set at a minimum of 26.84 hectares.

The government will also require that dairy land and cattle land also be used to grow livestock feed, to reduce the chances of cattle wandering away from the property in search of food.

The government will also soften the restrictions on building on the land, with 3 percent of the granted area now being allowed to be used to build housing and other structures.

In 2018 the government will also start taxing land ownership, with a rate of CUP 30-120 per hectare.