What is the "permuta" in Cuba and how does it work today?

For decades, when the sale of homes was prohibited, the permuta — exchanging one home for another — was practically the only legal way to move house in Cuba. It generated a culture of its own: chains of multiple exchanges, notice boards on the Prado, even movies.

Since 2011 buying and selling is legal, but the permuta has not disappeared: it remains a useful tool in a market where cash is scarce, there is no mortgage lending, and many transactions are, at heart, a house swap. This guide explains what it is, when it makes sense, how it is legalised and what risks it carries compared with an ordinary sale.

What exactly is a permuta

A permuta is the exchange of ownership of two — or more — homes between their owners. It can be "clean", house for house with no money involved, or with financial compensation when the homes have different values: one party hands over their home plus an agreed amount.

There are also multiple permutas, where three or more families exchange homes in a chain. They are harder to coordinate — every party has to sign and every home has to be in order — but they solve needs that a simple swap cannot: the chain fits together pieces that separately would not fit at all.

When to swap instead of selling

The permuta shines when both parties need to solve housing at the same time: whoever sells in order to buy risks being left "in the air" between transactions — no house, cash in hand, in a market where finding the next one can take months. In a permuta both moves happen simultaneously and that risk disappears.

It is also useful for adjusting home size to family size: exchanging a big house for a smaller one plus compensation, or the other way around. In a market with little mortgage credit, that compensation works as the financing between individuals that banks do not provide.

And there is a less obvious case: a permuta can move a home that is hard to sell. A property in a low-demand area may have very few cash buyers but several people interested in changing area. The swap opens a door the sale does not.

How a permuta is legalised, step by step

Like a sale, a permuta is formalized through a public deed before a notary. Each party must present their property title, the Property Registry certificates and their identity documents. The practical difference is that here two files have to be checked instead of one, and both have to be clean.

1. 1Each party gathers their title deed and requests an up-to-date ownership and liens certificate.
2. 2Both parties visit and inspect the home they will receive, with the same rigour as in a purchase.
3. 3Check that the technical descriptions match what is built, in both homes.
4. 4Agree in writing on the financial compensation, if any, and how and when it is paid.
5. 5Sign the permuta deed before a notary, with every party present or represented by power of attorney.
6. 6Credit the taxes arising from the transaction.
7. 7Each new owner registers their home at the Property Registry.

Taxes and declared value

A permuta is not tax-free. It is taxed as a transfer of assets, and the reference value of each home cannot be lower than the minimum reference values set by the Ministry of Finance and Prices (Resolution 313 of 2024). If there is financial compensation, it must be declared in the deed: hiding it saves no tax, it only leaves you with no proof of what you paid.

Rates, discounts for electronic payment and the specific procedure change fairly often, so confirm the current figures with the notary or the ONAT before signing. Our guide on taxes when buying and selling explains how they are calculated.

Risks specific to a permuta

Compared with a sale, a permuta adds risks of its own that are worth understanding before committing.

• Double due diligence: you check their house, but they also check yours. A problem in either file stops everything.
• Cross valuation: there is no single cash market price, but two valuations and a difference. That is where most arguments start.
• Compensation agreed verbally: if it is not in the deed, it does not exist.
• Simultaneous moves: agree in writing on the handover date for each home and the condition it is handed over in.
• In multiple permutas, coordination: a holiday or a last-minute disagreement is enough to collapse the chain.

Practical advice

Verify the documentation of the other home with the same rigor as in a purchase: an up-to-date ownership certificate, resolved inheritances and a technical description that matches reality. The fact that it is not "a purchase" does not reduce what is at stake.

Visit the home you will receive several times and evaluate its construction condition calmly; our inspection guide explains what to look at. And if the permuta includes compensation, document the full agreement in the deed: verbal agreements protect no one.