...

Paying in a new way or what Russians need to know about the new property tax

This WordPress post gives an overview of the recent change to Russia's tax laws concerning properties and how Russians need to be ready for it. The new law stipulates that all taxes concerning properties need to be paid electronically, a new and convenient way of paying that promises to be more efficient, practical, and modern. Additionally, it aims to reduce cases of fraud and corruption whilst simultaneously improving transparency in the taxation system.

Recommendation points



Basic provisions of the legislation

The main innovation of the new law is that the tax will be calculated based on the cadastral value of real estate. The standard rate is 0.1%, but can be increased by municipalities to 0.3% or decreased to 0.

Russians will pay tax not from the entire area of โ€‹โ€‹real estate, but only from its part. For apartments the tax-free area is 20 meters, for houses โ€“ 50 meters, for rooms โ€“ 10 meters.

The innovations will take effect from January 2015. But in order to reduce the tax burden on the population, it was decided that the full amount of the tax would be paid by Russians only from 2020..

The right not to pay

Not all citizens will be required to pay tax. The list of preferential categories is very wide:

  • disabled people;
  • pensioners;
  • military;
  • Chernobyl victims;
  • owners of houses intended for gardening, truck farming, subsidiary farming and individual construction, the area of โ€‹โ€‹which does not exceed 50 meters;
  • creative people who use their property as workshops, ateliers, studios, galleries and similar premises.

However, the benefits are for only one property. For example, owners of three apartments will only pay tax on two of them. Moreover, the tax-free premises can be chosen independently by the owner..

How to find out the amount of tax

The easiest option is to go to the Rosreestr website and enter the address of your real estate, cadastral number and other data, after which the system should give out the cadastral value of housing. Further, the tax amount is calculated simply elementary.

Example: the cadastral value of a 60-meter apartment is 1 million 200 thousand rubles. A third of its area โ€“ 20 meters, is not subject to taxation. It turns out that the tax must be calculated from the amount of 800 thousand rubles. The maximum possible rate is 0.3%, that is, in the worst case, the owner of the property will pay the state 2,400 rubles per year for it.

Also, residents of Russia can contact the Federal Service for Cadastre and Cartography. To do this, you must write a statement of the established form and present it to the employees of the institution, as well as provide them with documents of title to an apartment or house, a passport, a floor plan of housing and its explication.

Another way to find out the cadastral value of the premises is to look at it in the cadastral passport.

Specific figures

The innovations in the calculation of property tax will most of all hit the owners of apartments located in metropolitan areas, especially in prestigious areas. According to experts, on average, owners of two-room apartments in Moscow will annually pay to the budget from 4,883 to 9,450 rubles. And the tax on a three-room apartment located in the Central Administrative District of the capital can exceed 24 thousand rubles.

Paying in a new way or what Russians need to know about the new property tax

Such sad statistics allowed some analysts to conclude that 15% of apartments located in the elite districts of Moscow will be put up for sale in the near future, since their owners will simply not be able to afford property tax..

At the same time in St. Petersburg the municipal authorities decided that during 2015 the property tax will still be collected according to the old rules. And the decision on how much city residents will pay for their real estate will be made only after the authorities of the Northern capital take into account and analyze the experience of other subjects of the Russian Federation in setting rates and collecting this tax.

We pay the minimum

The cadastral valuation of housing is not always carried out objectively. According to experts, it may in some cases be 20-30% higher than the market value. Homeowners have the right to challenge it, thereby reducing the amount of tax that will be paid on the property.

Russian legislation provides 2 grounds for revising the assessment:

  • in the cadastral appraisal of an apartment or house, inaccurate information about these objects was used;
  • the market value of real estate is determined earlier than its cadastral value.

There are two bodies to which you can appeal the assessment:

  1. Commission that deals with disputes over the cadastral value of real estate.
  2. Court of Arbitration.

This can be done within 5 years from the date of the cadastral valuation.

Whichever method of appeal the property owner chooses, first he needs to conduct an independent assessment of his home. Such a service will cost a lot โ€“ from 4 to 20 thousand rubles. A considerable amount will have to be paid for the services of a lawyer who will collect the documents necessary for the appeal and represent the interests of the owner of the home in court and other state institutions.

Therefore, it is advisable to appeal the cadastral valuation only to Russians who own expensive apartments and houses, whose real estate tax is calculated in thousands of rubles per year..

Rate the article
( No ratings yet )
Recommender Great
Tips on any topic from experts
Comments: 1
  1. Aurora Kelly

    What are the key differences in the new way of paying property tax in Russia compared to the previous system? Can you provide some insights on how this will impact property owners and what they need to do to comply with the new regulations?

    Reply
Add comments