Costs are affordable with a Cost of Living Index (CPI) of 40.8 compared to NYC. Groceries (41.4) and restaurant prices (24.6) are notably low.

The housing market is very expensive, with a property price to income ratio of 48.2 years. Rental costs (Rent Index: 10.4) are significantly lower, but property transaction taxes were quintupled in late 2024, impacting affordability.

Purchasing power is very low, with an index of 2.8 compared to NYC. Average state monthly salaries are extremely low, often around $15-$40 USD (at informal rates), making it challenging to cover basic needs.

Cuba has a progressive income tax system for residents (15-50%) and a 15% flat rate for expats on Cuban-source income. Corporate income tax is 35%. A 10% sales tax applies to retail goods and services. Property transfer taxes are 4% for both buyer and seller, with reference values quintupled in late 2024. Cuba has a limited number of double taxation agreements, primarily with non-Western countries.

The business environment is challenging due to significant state control, bureaucracy, and a dominant state sector. While private micro, small, and medium-sized enterprises (MSMEs) were legalized in 2021, new regulations in 2024/2025 introduced stricter guidelines and activity restrictions. Recent measures by the US aim to ease restrictions for Cuban independent private sector entrepreneurs, allowing access to US bank accounts and internet services.

Cuba offers universal healthcare, free for residents, though quality has declined due to resource shortages. Healthcare is a budgetary priority for 2025, with 24% of the national budget allocated. A universal pension system exists, with pensions increased in September 2025, but they remain largely insufficient against the high cost of living. A ration card system provides subsidized basic foodstuffs, but quantities are limited.

Cuba's banking system is state-controlled, with no independent central bank. There is no formal deposit insurance or guarantee scheme identified. High inflation has eroded peso-denominated bank savings and trust in the local currency. In April 2025, the Central Bank authorized 10 companies to use cryptocurrency for international payments to address foreign currency shortages.