Support The Moscow Times!

Putin Signs Law Switching Property Taxes to Cadastral Values

President Vladimir Putin on Monday signed a law switching the base used to calculate property tax rates from inventory values to cadastral values, heralding significant tax rises for many Russian homeowners.

Two decades of breakneck capitalism in Russia have long since severed the connection between inventory real estate prices and market values. Cadastral values are an annually renewed government-set valuation that better reflects real market property prices.

The law sets the basic tax rate at 0.1 percent of the cadastral value of the property. Local authorities will have authority to raise this rate to as high as 0.3 percent or to lower it to zero, the government said in an online statement.

Though 20 times lower than the current rate of tax, property owners will on average pay three times more under the 0.1 cadastral rate.  

The extra tax revenues will be a boon to authorities struggling with a sharp economic slowdown and Western sanctions over Ukraine.

Commercial real estate owners — and owners of property worth over 300 million rubles ($7.5 million) will pay tax at 2 percent of cadastral property values.

Regional authorities will be able to introduce the new system from next year. By 2020, all regions must make the switch.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more