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 and many transactions are, at heart, a house swap.

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, but they solve needs that a simple swap cannot.

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; in a permuta, both moves happen simultaneously.

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 financing between individuals.

How a permuta is legalized

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.

If there is financial compensation, it must be declared in the deed. The transaction generates taxes for the parties, credited when the deed is signed; confirm the current percentages with the notary. After signing, each new owner registers their home at the Property Registry.

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.

Visit the home you will receive several times and evaluate its construction condition calmly. And if the permuta includes compensation, document the full agreement in the deed: verbal agreements protect no one.