Managing Your Money as an Expat in Cuba: Bankers, Pesos, Dollars, and International Accounts

Published on January 17, 2026 and written by Cyril Jarnias

Moving to Cuba, whether for a few years or longer, requires a complete rethink of how you manage your money. With an almost entirely public banking system, multiple official exchange rates and a very active black market, foreign bank cards often unusable, and a de facto dollarization of large sectors of the economy, the financial management of an expatriate in Cuba resembles neither that of Mexico, the Dominican Republic, nor even Europe.

A Singular Financial Landscape: Omnipotent State, Sanctions, and De Facto Dollarization

The Cuban financial system is entirely structured around the Central Bank of Cuba (BCC), created in 1997, which controls commercial banks and non-bank financial institutions. Eight major commercial banks operate in the country, all public or state-controlled. The most important for a foreign resident include Banco Metropolitano, Banco Popular de Ahorro (BPA), Banco de Crédito y Comercio (BANDEC), and Banco Financiero Internacional (BFI).

In this context, internal digitalization (local cards, payment apps, national electronic wallets) is progressing, but remains almost entirely disconnected from classic international rails (Visa, Mastercard, SWIFT, PayPal, Wise, Stripe, etc.). Payments remain largely cash-dominated, which has direct consequences for an expatriate’s daily management.

Currency and Exchange Rates: Understanding CUP, MLC, and the Informal Market

Since the 2021 monetary reform, the Cuban peso (CUP) is the only official legal tender. The old dual-currency system (CUP / CUC) has been dismantled, but the daily reality is much more complex, as several exchange segments coexist and the economy is largely dollarized.

The table below illustrates the logic of the different rates and markets described by official and independent sources.

Segment / Market	Indicative USD/CUP Rate	Primary Use	Key Characteristics
Official Segment I (state administration)	24 CUP	State accounting, internal public operations	Rate inherited from the CUC era, highly disconnected from reality
Segment II CADECA / banks (general public)	120 CUP	Official exchange for individuals	8% commission on USD, 2% on EUR
Segment III floating rate (since 2025)	400–460 CUP	Operations between exporting/importing entities	Daily rate set by the BCC, reserved for certain actors
Informal market (“street,” tracked by El Toque)	~250–320 CUP	Exchange between individuals, small private vendors	30–40% more favorable than the current bank rate

In addition to these CUP, there is MLC (Moneda Libremente Convertible), a purely scriptural “currency” pegged to the dollar, used on prepaid cards or foreign currency accounts to buy imported goods in special stores or pay for certain services.

Several elements are crucial for an expatriate:

For an expatriate, exchange strategy thus becomes a permanent exercise in balancing security (official channel), purchasing power (informal market), and the need for MLC for certain purchases.

Opening a Bank Account in Cuba: An Obstacle Course

The possibility of opening a local account varies greatly depending on the foreigner’s status. Regulations and experience reports converge on one point: for a “classic” expatriate, opening an account on site is difficult, slow, and often reserved for permanent residents.

General Conditions and Practical Reality

Cuban banks do not have “expatriate products” comparable to international banks. Opening an account in principle requires:

– A permanent resident status or at least a solid residency permit (e.g., via an E‑1/E‑2 visa for spouses, children, or parents of Cubans, or special authorization from the DIIE).

– A complete administrative file: passport, proof of local address, proof of income or resources, sometimes a criminal record from the country of origin, and in some cases a letter from the employer.

– An initial deposit, which can be significant for certain products: for accounts opened from abroad, a minimum of 5,000 CUC has been cited in previous rules, now transposed into USD or MLC.

MLC and Foreign Currency Accounts: A Key Tool, But Highly Regulated

An important evolution for expatriates and foreign residents is the generalization of foreign currency accounts and MLC accounts:

For imports of authorized goods, opening a dollar account at Banco Financiero Internacional S.A. requires a special license from the central bank.

The sensitive point remains the 10% tax on dollar transactions imposed by Cuba (on top of bank commissions), which mechanically reduces the real value of greenbacks for official operations.

Summary Tables: Useful Account Types for an Expatriate

To clarify the options, we can distinguish three main “layers” of accounts that an expatriate can combine.

Account Type	Location	Primary Use	Main Advantages	Major Limitations
Local checking account in CUP	Cuban bank	Local salary, bills, domestic expenses	Access to basic services, local direct debits	Difficulty opening, unfavorable exchange on foreign currency
Foreign currency / MLC account in Cuba	Cuban bank	Purchases in MLC stores, authorized imports	Access to imported goods, possible top-up via remittances	Strict controls, tax on USD, risk of foreign currency freeze
International / offshore account	Bank or fintech abroad	Savings management, international payments, investments	Legal security, multi-currency, online services	Not connected to the Cuban network, transfers to Cuba complicated

For an expatriate, the most frequent combination is to keep the bulk of their assets outside Cuba (international or offshore account), use cash for daily expenses, and only open a local account (CUP or MLC) if their residency status and activities truly justify it (local employment, import activity, investment project, etc.).

Daily Life: Cash is King, Cards are Unreliable, Local Apps are Essential

The daily reality of an expatriate in Cuba often boils down to tight cash management. Sources agree: in many cases, it is “practically impossible” to use American bank cards, and even European cards do not work everywhere.

The main constraints are as follows:

– Cards issued by American institutions (or subsidiaries under US jurisdiction) are practically unusable.

– Even non-American cards are only accepted at a limited number of hotels, state-run stores, and duty-free shops.

– ATMs are unreliable: frequent breakdowns, cash shortages, power cuts.

– Cuban banks charge around 3% commission on payments and withdrawals with foreign cards, on top of the fees from the issuing bank.

In light of this, the near-unanimous recommendation for long stays or expatriation is to come with enough cash (often $100 to $200 USD or EUR per person per day of stay, depending on the desired comfort level) and to manage it prudently.

Official Exchange vs. Informal Market: Balancing Legality and Purchasing Power

Official exchange is done at banks, hotels, and exchange houses (CADECA). You get a government-defined rate (e.g., 120 CUP for 1 USD with an 8% commission). This rate is much lower than on the informal market, where the dollar is easily traded around 250 to 320 CUP depending on the period.

– Many people use a trusted contact (owner of a casa particular, guide, local friend) to find a reliable money changer.

– Exchanging on the street with a stranger remains risky (counterfeit or expired bills, scams on amounts).

– It is common to convert only a small portion of foreign currency into CUP, using the rest directly in USD/EUR to pay for private accommodations, restaurants, and transport.

Before leaving the country, it is imperative to reconvert CUP, as they are worthless beyond the borders and can even be confiscated at the airport.

Local Apps and Electronic Wallets: A Booming Internal Ecosystem

Alongside cash, urban economic life is digitizing via several apps supported by the state or private actors:

These solutions are becoming almost essential for Cubans, but their usefulness for an expatriate depends on the length of stay and level of integration:

– They require an account with a local bank and a Cuban phone number.

– They operate on an internet infrastructure that is still expensive and unstable (ETECSA cards at 2 CUC/hour for Wi‑Fi, expensive and limited 3G).

– They are not directly linked to foreign accounts; money must already be injected into the Cuban banking system.

A long-term expatriate, married to a Cuban or involved in local economic activity, will have an interest in mastering these tools. A more “detached” expatriate or digital nomad will likely keep their flows on international platforms (Wise, Revolut, European online banks) and act as a “bridge” via cash.

Family Remittances, Incoming Flows, and Capital Outflow: An Extremely Controlled Environment

For many Cuban households, money from abroad (family remittances) is a decisive source of income. Estimates put these flows at several billion dollars per year in the 2010s, with a sharp drop since 2020 linked to US sanctions and the closure of certain channels like Western Union.

An expatriate living in Cuba can be, de facto, an incoming vector of foreign currency for their local family or circle. The structure of this market has several implications:

For an expatriate wishing to receive funds from their home country to Cuba, options are limited:

Capital outflow poses another problem. Recent measures have shown that the state can decide to freeze the ability to transfer or withdraw foreign currency held in local accounts, offering only to open new “real” accounts for future flows. For an expatriate with foreign currency income in Cuba, this means anticipating the possibility of not being able to easily repatriate their earnings.

Investing and Doing Business in Cuba: Framed Opportunities and Banking Precautions

For several years, Cuba has been attracting foreign investors in targeted sectors: tourism (notably the Mariel Special Development Zone), renewable energy, agriculture, biotechnology. The main legal framework is Foreign Investment Law 118, which offers guarantees (protection against expropriation, tax-exempt dividend transfers, preferential tax regime for certain structures) but in a highly controlled environment.

Authorized Investment Structures and Banking Implications

Three main legal forms exist for foreign investment:

– Joint venture: A jointly owned corporation by a Cuban entity and the foreign investor.

– International Economic Association Contract: A contract without creating a separate legal entity, used notably for natural resource exploitation, hotel management, or certain agricultural projects.

– Wholly Foreign-Owned Enterprise: Permitted in specific sectors and after approval by the Council of Ministers, can take the form of a subsidiary or branch.

Tax benefits for joint ventures and associations include:

– Exemption from profit tax for the first eight years (extendable period).

– A 15% profit tax rate thereafter, with the possibility of an increase up to 50% for natural resources.

– Exemption from workforce use tax, partial waivers on sales and service taxes, exemption from customs duties on certain imported equipment during the investment phase.

However, the financial context complicates the life of these structures, including for expatriate managers or partners:

For expatriate entrepreneurs or managers of such companies, caution involves:

– Limiting sums left long-term in Cuban accounts.

– Including precise contractual clauses on foreign currency payments, authorized foreign accounts, and arbitration mechanisms in case of dispute.

– Maintaining a strong relationship with an international bank outside Cuba (HSBC Expat, Standard Bank offshore, European or Asian online banks) to secure personal savings.

International Accounts, Brokers, and Fintech: Maintaining a Financial Base Outside Cuba

Faced with local constraints, the majority of expatriates choose to keep the core of their financial assets outside the country. Several common options exist:

These solutions have several advantages in an expatriation strategy to Cuba:

– They allow diversification away from Cuban political and exchange risk.

– They use high security standards (two-factor authentication, encryption, strong regulatory standards like ASIC, FCA, CySEC, etc.).

They do not, however, erase two realities:

The table below illustrates the functional differences between a local account in Cuba and a typical international account for an expatriate.

Characteristics	Cuban Account (CUP/MLC)	International Bank / Fintech Account
Access to local payment network	Yes (Transfermóvil, EnZona, local cards)	No (except via cash or remittances)
Connection to Visa/Mastercard international networks	Very limited	Yes, for payments worldwide
Political / exchange rate risk	High, depends on state decisions	Diversified depending on jurisdiction
Ease of opening for an expatriate	Low to medium (residency often required)	High in home countries or offshore jurisdictions
Multi-currency support	Yes (for some MLC accounts)	Yes, often broader (USD, EUR, GBP, etc.)
Investment services	Very limited	Extensive (global stock exchanges, ETFs, funds, etc.)

The pertinent combination for an expatriate often consists of:

– Keeping savings and main income on one or more solid international accounts.

– Using a fintech (e.g., Wise or Revolut) to convert at a good rate into USD or EUR and withdraw these currencies before traveling to Cuba.

– Managing primarily cash on site, reserving the opening of a local account for specific needs (permanent residency, purchase of goods in MLC, approved investments).

Taxation and Reporting Obligations: Not Being Trapped by Cuban “Disconnection”

The isolated nature of the Cuban financial system can give an illusion of a “gray zone”. This is not the case: most expatriates remain subject to the tax laws of their country of origin, even if Cuba is not integrated into the OECD’s Common Reporting Standard (CRS) and its banks do not spontaneously transmit information.

For American expatriates, for example:

For other nationalities, rules vary, but several constants remain:

Finally, for emigrated Cubans who maintain permanent resident status in Cuba, the internal tax law provides: specific provisions regarding their tax obligations and income generated abroad.

– A 4% tax on income received abroad in the absence of a double taxation treaty.

– A 15% tax on income earned in Cuba.

– The obligation to declare all income annually, regardless of its geographical source.

For an expatriate living in Cuba, properly organizing the structure of their accounts and documenting their flows (employment contracts, proof of international transfers, bank certificates) greatly simplifies the preparation of their tax returns in the medium term.

Security, Risks, and Best Practices for Managing Your Finances in Cuba

Beyond figures and regulations, daily financial management in an environment like Cuba also relies on common-sense reflexes, which apply to both expatriates and foreign entrepreneurs:

Finally, staying informed is vital: monetary and regulatory reforms follow one another, with new Central Bank resolutions, exchange rate adjustments, creation of new market segments, or changes to foreign currency management rules. Following official media (Granma, Cubadebate, Mesa Redonda) but also independent observatories (for example, El Toque for informal rates, or the Observatory of Currency and Finance of Cuba) allows for regular adjustment of one’s financial strategy.

Conclusion: Financial Management Based on Resilience and Redundancy

Managing your money internationally as an expatriate in Cuba means accepting to operate with several “layers” of systems that hardly communicate with each other: a public, partially dollarized, and highly controlled Cuban banking system, a global ecosystem of banks and fintech offering flexibility and high-end services, and an informal market where exchange rates, cash transfers, and improvised solutions are negotiated daily.

For an expatriate, the key is to build a resilient financial architecture:

In a country described by its own officials as operating in a “wartime economy,” an expatriate’s finances cannot be left to chance. They require preparation, flexibility, and above all the ability to adapt quickly to rule changes – whether they come from Havana, Washington, or one’s own country of origin.