Arguments in favour of a successful property recovery process

Political analysts and international law experts agree that there are strong arguments in favour of a successful outcome in the property recovery process in Cuba.

Over the last years, and more specifically since December 2014, a number of key developments have succeeded and contributed to accelerate the normalisation process of Cuba’s international relations. This new and promising scenario brings additional visibility to the property recovery process. Some of the aforementioned developments include:

Following the announcement made by presidents Raul Castro and Barack Obama as of December 17th 2014, a new era for Cuba’s international relations was born. New horizons for the country will most probably bring significant economic, social and political changes.

Raul Castro was ratified as President in 2008. In 2013 he anticipated his retirement by 2018 and appointed a first Council of State Vice-president, Miguel Díaz-Canel (56). It is noteworthy to point out that Díaz-Canel is the first politician in the Cuban Government who did not participate in the Cuban Revolution.

Experts concur with Cuba’s significant needs for foreign investment in order to launch its economy. As they point out, those needs are patent across all sectors on the island. For many years the country has been suffering from a total lack of investment activity related to infrastructures and real estate, which can’t be faced without foreign private investment.

New Cuban laws are gradually allowing foreign investment and foreign property on the island.

These amendments entail a liberalisation of the housing market, although limited to Cuban nationals with residence in Cuba and to foreigners with permanent residence in the island.

There is a growing disaffection towards the Communist Party among Cuban population, especially among young people, highlighting a manifest dissatisfaction with the state of Cuban politics.

Raising voices in favour of lifting the Cuban embargo among Democrat and Republican ranks in the US Congress. There is also an increasing pressure in that same direction from lobbies from different sectors in the US, including airlines, cruises, tourism, agriculture, etc.

Comparative law by country:

Recovery process approach: Constitution of a new legal entity formed by property right owners.
Company / corporates recovery: No
Property recovery: Yes
Other: The new legal entity was then publicly listed.

Recovery process approach: Enactment of new laws led the recovery process.
Company / corporates recovery: Yes
Property recovery: Yes
Land recovery: Yes
Lease term: Agreement between owner and tenant.
Other: 3 year deadline to present all documentation (extended later on).

Recovery process approach: Law specially enacted for the recovery cause in 1993.
Company / corporates recovery: Yes
Property recovery: Yes
Land recovery: Yes
Lease term: 13 years. After that ownership was fully recovered.
Other: 3 year deadline to present all documentation (extended later on).

Recovery process approach: Law specially enacted for the recovery cause in 1993, granting legitimacy to former owners regardless of their nationality.
Company / corporates recovery: Yes
Property recovery: Yes
Land recovery: Yes
Lease term: 10 years. After that ownership was fully recovered.
Other: 3 year deadline to present all documentation (extended later on).

Recovery process approach: Enactment of new laws led the recovery process.
Company / corporates recovery: Yes
Property recovery: Yes
Land recovery: Yes
Lease term: Agreement between owner and tenant.
Other: 3 year deadline to present all documentation (extended later on).

 

Recovery process approach: Law 11299 ALG.
Company / corporates recovery: Yes
Property recovery: Yes
Land recovery: Yes for the expropriated parties that had their residence in GDR. The expropriated non-residents had the option to re-purchase the land at symbolic prices.
Plazo de alquiler: Lifelong. Ownership was fully recovered with tenant’s death.
Other: 10-15 year deadline to present all documentation (but it didn’t prescribe).