Nowadays, it is no secret to anyone that the property tax in Russia is one of the lowest in the world, but many investors and buyers, before buying land and property in Russia, would like to know how much need to puy the property tax in Russia? In this post we will try to answer for this question in detail. Property tax in Russia directly depends on the category of property and the cadastral value of the property. The cadastral value usually corresponds to the market value of the property, but not always. In Western and Southern part of Russia, the market price of the property usually exceeds the cadastral value, in Siberia and the far east of Russia, on the contrary, the market price usually is lower than the cadastral value.
The lowest tax on property in Russia is a tax on agricultural land. The tax rate is only from 0.1% to 0.3% of the cadastral value of agricultural land. For example, if the value of agricultural land is $ 200,000, the land tax will be only $ 200, $ 400 or $ 600 per year, depending on the region in which the land is located. The lowest rates 0.1% is in Siberia and at the Far East of Russia.
The tax on large houses and small houses with land is also very low and amounts only 0.1% of the total cadastral value of property.
For apartments intended for private residence, the tax is also 0.1%. Such low tax rates on property in Russia provide a guarantee of profit for long-term property owners. Because the market value rises much faster than 0.1% per year.
If you decide to purchase a building, office, warehouse, shop or other commercial property for business, then the tax will be higher and will be 0.5% of the total cadastral value of this property.
The highest property tax in Russia is a tax on the land of the industrial category, coast line land and land of other categories, the use of which may cause any harm to the ecology of Russia. The tax rate for holders of land of these categories is 1.5% per annum of the cadastral value.
The terms of land tax payment for taxpayers are established in the legislative acts of the subjects of the Russian Federation, but not later than December 1 of the year following the reporting year. As for the deadlines for the payment of land tax for legal entities, they cannot begin earlier than the deadline for submitting the declaration – February 1.