In Russia, there are two main types of rights on real estate: the ownership right (possessing, using and selling of the property) and the lease right (possessing and using the estate according to the terms agreed with the landlord). In case you are in search for professional legal assistance, feel free to contact our lawyers in Russia.
Fees and taxes for selling properties in Russia
The sale-purchase contract has to be registered with the State Registrar for the Property Rights and Deals. There are two kinds of registration in Russia:
- the expedited registration (which can take up to two weeks); a fee has to be paid per entry and if the purchased property is a building that has land, a separate fee is necessary for registering the land as well;
- the usual registration (which takes up to four weeks).
The seller and the buyer execute a preliminary contract, describing all the conditions of the deal that is about to be closed and states the list of documents that have to be provided by the seller. The sale transaction usually takes place in a bank. After the payment, both of them have to sign the agreement in front of a notary or realtor. You can ask our attorneys in Russia for more information or advice on issues related to selling a property or other legal matters.
The tax rates depend on the tax residency of the vendor. Typically, persons who exceed 183 days per year in the Russian Federation are seen as tax residents and the tax rate for them is of 13%. These sellers have to pay the taxes on the capital gains. In the case of owning a property for more than three years, the vendor is exempt from all taxes. For non-residents there are no tax exemptions and they have to pay 30% on the sale proceeds.
The video below presents the main steps required to sell real estate property in Russia:
Preparing the Russian property for sale
The selection criteria in Russia does not usually include a property's physical condition, as in most cases buyers prefer doing their own renovations and arrangements. Other sale conditions, however, are seen as more important, namely the legal aspects of the property and the completeness of the paperwork (done by the seller). For example, if you have inherited the estate, you should register the title before trying to sell it. If you have Russian relatives registered on your property, it is recommended to register them at some other address, thus putting it on the market free of third party rights.
Should you need legal guidance, counselling and further details on how to sell a property in this country, our Russian lawyers can help you with all the documents and procedures needed to complete the transaction.
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