Friday, November 4, 2011
The NY Times has an article today regarding Cuba's decision to allow citizens and permanent residents to buy and sell real estate. Transactions will be taxed at a rate of 8% and must be financed through the Cuba Central Bank. People will be permitted to own only two homes -- one residence and one vacation property. But despite the limitations, this is a huge free-market move for Cuba. It is anticipated that Cuban-Americans, who are now permitted to send money to their relatives per a 2009 executive order, will play a major role in the new private property boom.