Cuba legalizes private property rental

Updated: 2010-11-30 11:16

(Xinhua)

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HAVANA -- Cuban authorities have allowed citizens to rent rooms, gardens, roofs and swimming pools to help the establishment of small businesses, the official daily Granma said in a Monday editorial.

The government has also authorized the rental of rooms and houses for Cubans seeking to alleviate the shortfall of 500,000 homes.

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"This will be considered as an alternative employment," Granma said, a reference to the expected initial cut of half a million state jobs over the next six months.

Owners must pay tax according to the space they rent, plus tax on income and social security contributions. Landlords can also hire domestic servants or gardeners.

The government will cancel the lease license or confiscate the property of anyone found breaking the law.

"These kinds of activities will be monitored and controlled," Granma said.  "Total compliance with the law is required."

The Cuban authorities began discussing self employment as a method of boosting the nation's ailing economy in October. Business proposals include coffee shops, gyms, carpenters, locksmiths and watchmakers.

The new opportunities of self employment could provide a new source of income to supplement Cuba's current state salaries of about 20 dollars a month.

Cuban leader Raul Castro described the salaries as insufficient in his inaugural speech in July 2007.

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