Cuba

{"ftc_utility":"low","fbar_trigger_notes":"US persons are generally barred from opening Cuban bank accounts under OFAC rules. In the rare case a licensed US person holds a Cuban bank account exceeding $10,000 USD equivalent, FBAR filing (FinCEN 114) would be required. Cuban accounts denominated in CUP or MLC complicate valuation. IRS guidance on Cuban financial accounts is limited.","ftc_utility_reason":"The combination of US embargo restrictions, lack of a tax treaty, and practical inability for most US citizens to legally reside and earn income in Cuba makes FTC utility very low. In the rare licensed-professional scenario, Cuban income taxes paid at rates up to 50% could in theory generate FTC credits against US tax liability, but the practical application is almost never realized.","presence_day_count_notes":"US citizens are generally prohibited from residing and working in Cuba under OFAC regulations and the US embargo. Tourist visas (tarjeta del turista) are typically 30 days, extendable once to 60 days. Long-term legal residence for US nationals is effectively not available through standard channels. The 330-day physical presence test is not practically achievable for most US citizens given these restrictions. Journalists, diplomats, and certain licensed travelers may have different arrangements but are a narrow exception.","typical_qualifying_method":"physical_presence","housing_exclusion_available":false,"physical_presence_test_applies":false,"estimated_housing_exclusion_usd":null,"local_tax_rate_on_earned_income":0.5,"bona_fide_residence_test_applies":false}

{"pension_income":{"notes":"Foreign-sourced pension income is not explicitly addressed under Ley No. 113 for non-resident foreign earners. The practical expat population in Cuba is negligible and no administrative guidance exists on taxing foreign pension income remitted to Cuba.","tax_rate":null,"locally_taxed":false},"social_security":{"notes":"No US-Cuba totalization agreement or income tax treaty exists. US Social Security income received by a US person in Cuba would not be subject to Cuban income tax under current Cuban law, though the legal environment for US residents in Cuba is highly restricted.","locally_taxed":false,"treaty_protection":false},"roth_distributions":{"notes":"No Cuban statutory framework addresses Roth IRA distributions from a US plan. Given the absence of a tax treaty and the highly restricted expat environment, Roth distributions would not be taxable in Cuba in practice.","locally_taxed":false},"us_401k_ira_distributions":{"notes":"The US and Cuba have no bilateral income tax treaty. In practice, US expats cannot legally reside and work in Cuba under normal circumstances given OFAC restrictions and the US embargo. Cuban tax authorities have no established mechanism to tax foreign-sourced pension distributions from US retirement accounts. No treaty protection exists.","tax_rate":null,"locally_taxed":false,"treaty_protection":false}}

{"rate":0.5,"notes":"Cuba does not maintain a separate capital gains tax regime. Gains are folded into general income and taxed at ordinary progressive rates, with the top marginal rate reaching 50%.","details":{"tax_type":"Capital Gains Tax","country_name":"Cuba","country_iso_code":"CUB","source_references":["Ley No. 113 del Sistema Tributario (Cuba, 2012)","KPMG Cuba country profile","EY Worldwide Tax Guide"],"last_verified_date":"2026-06-03","general_description":"Cuba has no standalone capital gains tax. Capital gains realized by individuals are treated as ordinary income subject to the progressive personal income tax schedule under Ley No. 113 del Sistema Tributario (2012). The private economy remains limited, so capital gains events are rare in practice. For foreign-invested joint ventures, gains are typically subject to the 35% corporate income tax rate.","corporate_capital_gains":{"rate":0.35,"tax_treatment":"Taxed as ordinary corporate income at the standard 35% CIT rate. Joint ventures with foreign capital may negotiate specific fiscal terms under Decree-Law No. 325."},"individual_capital_gains":{"rate":0.5,"tax_treatment":"No separate CGT. Gains taxed as ordinary income at progressive rates up to 50%. Private property transactions are limited and most real-estate transfers occur within a restricted legal framework."}}}

{"notes":"Cuba imposes a withholding tax on dividends paid to foreign investors. The standard withholding rate under Ley No. 113 is 10% on dividends distributed from joint-venture profits to non-resident shareholders. State-to-state distributions within the socialist economy do not follow standard dividend mechanics.","rates":[{"rate":0.1,"type":"withholding","notes":"Standard rate on dividends to non-resident foreign investors under Ley No. 113 (2012). Bilateral investment treaties may reduce this rate."},{"rate":0,"type":"exempt","notes":"Dividends retained within state-owned enterprises and distributed to the state are outside the standard withholding framework."}]}