Cuba expands private sector with vehicle, pharmacy and commerce reforms
The Cuban government approved a sweeping set of economic reforms that open dozens of previously state‑only sectors to private ownership. A new decree authorises private pharmacies, banks, law firms, architecture and engineering services, as well as elder‑care homes and port terminals, aiming to alleviate chronic shortages of medicine and improve service quality.
Transport policy was overhauled: the five‑year limit on purchasing six vehicles has been removed for individuals and companies, the number of authorized dealers doubled, and non‑state entities may now assemble and sell electric vehicles, mopeds, motorcycles and cars. Tax exemptions were introduced for electric vehicles and for buses assembled locally, and the sale of vehicles to foreigners with temporary or permanent residency has been liberalised.
Commerce regulations were also updated. New rules restructure wholesale trade, create “neighbourhood markets” and allow mixed public‑private management of the Family Support System (SAF) cafeterias that provide subsidised meals to vulnerable citizens. The reforms include fiscal incentives for non‑state participants and lower sales‑tax rates for essential goods.
Together, these measures constitute the most extensive market‑oriented shift in Cuba since the 1959 revolution, seeking to revive the economy amid prolonged power outages, food and medicine shortages, and heightened U.S. sanctions.
Entities: Betsy Díaz Velázquez · Central Bank of Cuba · Corporación CIMEX · Cuba · Cuban Ministry of Commerce · Cuban Ministry of Transport · Decree 163/2026 · Eduardo Rodríguez Dávila · Ministry of Finance and Prices · Ministry of Transport (Cuba) · Ministry of Transport (Mitrans) · Resolution 172/2026
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] Resolution 172/2026 establishes a tiered special tax on vehicle sales: 35% for luxury cars, 25% for standard combustion cars, 5% for imported electric vehicles, with lower rates for locally assembled‑ (Cuban Ministry of Finance and Prices)
- [● 2 SOURCES] Vehicle transfer transactions must be notarised and buyers must submit an affidavit confirming lawful origin of the money used. (new regulations)
- [● 7 SOURCES] Non‑state legal entities are authorized to assemble and market electric vehicles such as ciclomotores, motorcycles, tricycles and cars. (new regulations)
- [● 2 SOURCES] Decree 163 expands eligibility for vehicle transfers to Cuban citizens, foreign residents with various visas and certain legal entities. (new regulations)
- [● 2 SOURCES] Mitrans introduced a new three‑stage homologation process for self‑built motor vehicles, requiring online registration, technical inspection and official documentation. (new regulations)
- [○ 1 SOURCE] Minimum reference values for vehicle tax calculations are set, e.g., 2,040,000 Cuban pesos for cars less than five years old. (new regulations)
- [● 7 SOURCES] Electric vehicles sold together with renewable‑energy charging stations are exempt from the special sales tax. (new regulations)
- [● 6 SOURCES] The previous limit of six vehicle purchases per five‑year period for individuals and companies has been removed. (new regulations)