Casa Particular License – How Much Do Cubans Pay?
Cubans who own and operate a Casa Particular have to pay hefty maintenance fees to the government. It has a lot to do with the fact that Cuba almost collapsed when the country lost 80% of its trade it had going with Russia prior to the Berlin Wall collapse. While Eastern Europe was celebrating end of communism, Cuba was struggling to survive.
Fidel Castro rescued island’s economy in 1994 by opening Cuba to foreign vacation companies making tourism primary source of foreign currency. In 1997, Castro allowed for private sector to make extra income from booming tourism by operating Casas Particulares and renting rooms to foreigners.
It may seem shocking, but average Cuban makes as much a month, as a tourist pays for a night in a Casa Particular. Yet for a tourist, Casas Particulares are very reasonably priced and allow for inexpensive vacation on a beautiful island in the Caribbean.
Logically, Cubans who don’t operate Casas Particulares would be heavily disadvantaged if Casa owners were able to retain most of the income from rentals to tourists. Most products and services offered to Cubans are very cheap. Public transport, food, etc are all priced at a level so Cubans can afford it despite what may seem to a foreigner as very low monthly salary.
Prices that tourists pay for casas are normal for tourists. Cuban government used to operate or tourism related services and establishments. By allowing private sector to run Casas Particulares, Cuban government basically gave part of their income to the citizens but they came with the fee schedule that makes operating Casas Particulares a competitive business that makes owners motivated, while still bringing a lot of money to the government that desperately needs foreign currency to keep the country running and capable of attracting more tourists (who in turn bring more income to owners of casas who are then capable to pay government fees for running casas, and it just goes on like that. Fidel Castro deserves the title of “Best Leader of out time” hands down).
Casa Particular License Fees
Owners of Casas Particulares can charge per night what average Cuban makes in a month and it will be still priced at the level that’s very attractive to tourists. For the privilege to operate Casas Particulares, owners must pay the government following license fees:
CUC$ 50 a month for legal Casa Particular sign
CUC$ 100 – 250 a month per room tax
Tax per room varies and is dependent on location. Some locations, such as Havana are more popular and casa owners get more business there.
This being said, above mentioned license fees are what Cubans must pay every month whether they get enough business or not. Needless to say – every Cuban will try really hard to make sure they offer quality of service that would attract lots of tourists and will try to fill in their schedule as much as they can.
During high season they often make more and save up so they can still pay the fees during low season when there are not as many tourists around to rent rooms in their casas.
Incoming search terms:
- how much do cubans make a month
- how much does the average cuban make
- how much do cubans make annually
- how much do cubans make
- government fee to operate a casa particular
- fee to operate a casa particular
- can a foreigner own a casa particular
- how much does the average cuban earn
- how much does the average cuban make a year
- how much is the cost of temporary licence in cuba?