Starting from 2021, in a number of regions, apartment owners will receive new property tax receipts. It is calculated based on the cadastral value of housing. This valuation is as close as possible to the market value.
The updated property tax was introduced gradually. When switching from the inventory value of objects to the cadastral value, up to 2021, the calculation formulas took into account reducing factors to distribute the sharply increased financial burden. In 2021, the practice of using reducing coefficients ceased to exist, and starting from 2021, the tax is calculated from the full cadastral value of the property.
All taxpayers are required to report to the Federal Tax Service by submitting until March 30, 2020. declaration for the expired tax period (2019). The timing of payment is determined by the regional authorities and informs legal entities officially.
What is personal property tax and what to pay for it
If you have real estate, you are obliged by the Tax Code of the Russian Federation, Article 400, to annually transfer some money to the state - for what gave you the right to own property. The following objects of the Tax Code of the Russian Federation are subject to tax Article 401:
- houses, including residential buildings located on plots for vegetable gardening, horticulture and personal farming;
- apartments, rooms;
- garages, parking spaces;
- unified real estate complexes;
- unfinished construction projects;
- other buildings, structures, structures, premises.
Delay from the developer
The whole process from the moment of decision to the execution of the mortgage agreement took me two weeks. I chose an apartment in a building that was supposed to be rented out first; the wait, according to the developer, was very short. Because of this, the cost of my housing was absolutely market value, as if I were buying ready-made apartments in a new building. I expected to receive the keys on May 31, 2019 and welcome the summer in a new house - with a view of the Moscow River and access to its own well-maintained beach.
But the developer did not fulfill his obligations and was late. I was only given the keys on September 20th. I was, of course, disappointed. I plan to sue and get compensation.
Among other things, after completion of the apartment, defects in the renovation were discovered. Upon admission, I drew up a report and indicated comments. It was necessary to re-tile the kitchen and laminate flooring in the room. Now workers are doing this, so I still haven’t moved into the apartment.
How is personal property tax calculated?
If you don’t want to deal with the nuances, there is a calculator on the Federal Tax Service website. With its help you can quickly calculate the tax amount. This information will be useful to you if you are creating a budget for the year or just want to know in advance how much you will have to pay. In general, the tax office calculates everything itself and then simply informs you how much you owe.
The tax is calculated taking into account several criteria.
The tax base
This is the cadastral value of the property. It is determined by specialists authorized by the state using a special methodology. Unlike the inventory value, at which property taxes were previously calculated, the cadastral value takes into account not only the cost of housing, but also important characteristics such as transport accessibility and infrastructure.
You can find out the cadastral value online on the Rosreestr website.
To do this, you need to know the cadastral number or address. The cadastral number is indicated in the certificate of ownership if you purchased the property before July 15, 2021, or in an extract from the Unified State Register of Real Estate, which you should keep after registering the transfer of ownership in Rosreestr.
You can also view the cadastral number and cadastral value in your personal account on the tax website.
The cadastral value may be recalculated periodically. Therefore, to calculate the tax, the one in force on January 1 of the year for which it is paid is used. If the property was acquired within a year, then the cadastral value is taken as of the date when information about the new owner was entered into the Unified State Register of Real Estate.There is one more important point. The Tax Code implies a series of tax deductions that can seriously reduce the tax base. It is proposed to deduct either square meters from the area of the property - they will not be taxed, or a specific amount from the cadastral value. This:
- 10 meters for a room or part of an apartment;
- 20 meters for an apartment or part of a house;
- 50 meters for the entire house;
- 1 million, if we are talking about a single real estate complex that contains at least one residential building.
Let's say you are the owner of an apartment with an area of 60 square meters with a cadastral value of 3 million rubles. With a tax deduction of 20 meters, you will have to pay tax only for the remaining 40 meters, that is, the tax base will be 2 million rubles, not 3.
If the owner has many children, the tax base is further reduced. For each child, the cost of five square meters of a room or apartment and seven square meters of a residential building or part thereof is deducted from the tax base.
Tax rate
The Tax Code provides for the base rates of the Tax Code of the Russian Federation Article 406:
- 0.1% for houses, including unfinished ones, apartments, rooms, single real estate complexes, if at least one object in them is intended for housing.
- 2% for property whose cadastral value exceeds 300 thousand rubles, as well as if it is on a special list of real estate approved by local authorities. Usually there are various retail and office buildings there.
- 0.5% for other real estate.
The final rates are set by local authorities. They can reduce the base numbers to zero or increase them, but not more than three times. They are also allowed to introduce differentiated rates depending on the cadastral value, type of property and its location.
Therefore, for example, in Moscow, Moscow City Law No. 51 dated November 19, 2014, apartments, rooms in a house with a cadastral value of up to 10 million are taxed at 0.1%, from 10 to 20 million - 0.15%, from 20 to 50 million - 0.2%, from 50 to 300 million - 0.3%. For garages and parking spaces, the tax will be 0.1%, and unfinished construction will be at a rate of 0.3%.
You can find out the rates for your locality on the Federal Tax Service website.
Accordingly, you can find out the amount of tax by multiplying the tax base by the tax rate.Ownership share
Let's say you own an apartment equally with your spouse. Or ⅔ of your parent’s apartment is registered to you. In this case, it is for half or ⅔ that you must pay tax. Therefore, you need to calculate this part of the product of the tax base and the tax rate.
Taxable period
By default, tax is calculated annually. But if you bought or, conversely, sold property, you will only have to pay for the months that you owned it. A simple formula works here:
Tax = Cadastral value × Tax rate / 12 × Number of months you owned the property.
Why apartments
When I started thinking about buying a home and started looking at my options, I realized that my budget required two solutions. The first is to buy an apartment closer to the metro, but in an area in the east of Moscow. And second - apartments away from the metro, but in the west of Moscow. I chose the second option: the western regions are considered more prosperous in terms of ecology, safety and infrastructure.
The residential complex where I chose the apartments is located in Strogino, but outside the Moscow Ring Road, so it is actually the Moscow region. My apartment looks like an ordinary one-room apartment with a separate kitchen, bathroom and hallway - this is not a studio.
A room in my new apartment
The developer didn’t think through the parking, and this is what the yard looks like now
Corridor on the floor in our house
When and how to pay property tax for individuals
You need to transfer money to the tax office before December 1st. By November 1, the Federal Tax Service must send a general notification for land, transport taxes and property taxes. The document arrives by regular mail or electronically to your personal account on the tax website, if you have one.
You can pay money in several ways.
Through your personal account on the Federal Tax Service website
Select the "Taxes" tab, open the notification, go to the "Pay" option.
Via the Federal Tax Service website
You can pay through this service without registration. Select the option “Individuals”, then “Payment of taxes, insurance premiums”.
Through a bank or Russian Post
Please notify an employee of the institution.
Via an ATM or payment terminal
Select the desired service, enter the amount and details.
Redevelopment vs. new building
| Apartments for redevelopment | Apartments in a new building | |
| From the start of construction to receiving the keys | Six months | 2–3 years |
| Freshly renovated | Yes | Yes |
| Infrastructure in the area: transport, shops | Yes | Not always |
| Risk of “delayed construction” | Minimum | Yes |
At the same time, prices for apartments in “rebuilt” buildings are most often very low. In my house they started from 2.5 million rubles for a studio - with a minimum down payment on a mortgage of 400 thousand rubles. If you take out a mortgage for 20 years under such conditions, the monthly payment will be about 20 thousand rubles per month. Cheaper than renting any apartment in Moscow.
My apartment cost 3 million rubles. They will not be finished, so they will have to make repairs. I plan to spend 400 thousand on it - I will use good materials.
Are there any benefits for personal property tax?
Some categories of citizens receive a 100% benefit, that is, they do not have to pay tax at all. Their list is quite long; it can be read in its entirety in the Tax Code of the Tax Code of the Russian Federation, Article 407. In particular, it contains:
- Heroes of the Soviet Union and Heroes of the Russian Federation, as well as persons awarded the Order of Glory of three degrees;
- disabled people of the first and second groups, as well as disabled people from childhood and disabled children;
- participants and veterans of various military operations, starting with the Civil War;
- pre-retirees and retirees.
If a citizen owns several real estate properties, the benefit applies to only one of them - at the taxpayer’s choice. It is important that this property is not used in business activities.
There are also local benefits. They can be found in the same tax service where you checked tax rates. They can also reach 100% or make up some part of the tax.
Why did I buy an apartment
The building I live in and other houses in the neighborhood are former hotels. Now they are being converted into apartments: they are completely restored, communications, elevator shafts, heating, pipes, and electrics are changed. This kind of restructuring is called redevelopment. It can be carried out in former hotels (as is the case with my house), dormitories, office centers and other non-residential buildings.
In my opinion, it is more profitable to buy apartments in such houses than in new buildings “at the foundation pit stage”. Reconstruction takes much less time, the apartment and house can be seen in advance (live, not on renderings). Typically, redevelopment is carried out in buildings that are located within the city - which means that there will already be a landscaped area around, and not construction dirt and vacant lots.
Land tax amount in 2021
The payers of this tax are the owners of land plots who have ownership rights to them, or the right of perpetual use, confirmed by the relevant legal document or an extract from the cadastre.
In the case of joint ownership of a plot by two or more persons, each of them pays tax in proportion to the value of their share.
The tax is calculated as follows:
ZN = KS x C
, Where
- ZN - land tax;
- KS – cadastral value of the site;
- C is the tax rate.
The cadastral value reflects the real market valuation of land plots made at the beginning of the current year. Data about it can be found on the Rosreestr website using the cadastral number of the plot. In addition, owners can make a request in writing and receive an official statement of the value of the site.
Summarizing
As we can see, Russian tax legislation is not the most friendly to summer residents and owners of country houses, but it has quite a lot of loopholes. The extensive list of categories of people entitled to benefits also inspires optimism. In each specific situation, consultants and FORUMHOUSE participants experienced in tax battles are ready to provide advice - you can share it in the Real Estate Taxes section of the forum.
Also on FORUMHOUSE you can find out how to request a recalculation of property taxes and read an article on how to calculate and dispute property taxes.
How are apartments different from an apartment?
An apartment is a residential property where you can register at your place of residence or stay. But an apartment is a non-residential object, and registration in it at the place of residence is impossible. The very concept of apartments, unfortunately, is still not regulated by law and is found only in the hotel business. So the rest of the use of this term is more of a marketing nature.
For owners of residential and non-residential premises, different prices for utilities may be set - and, as practice shows, for apartments it can be higher.
The requirements of building codes and regulations for apartments and apartments are also different. So, before purchasing an apartment, I advise you to carefully read the documents reflecting the technical side of the construction project.
Is the mortgage agreement different for the purchase of apartments and apartments?
As practice shows, mortgage agreements for apartments and apartments, which are concluded with individuals for personal or family needs, are almost identical. Such an agreement is a loan for the purchase of real estate secured by the same real estate - and it does not matter whether it is residential or non-residential. But the interest rates on these loans may vary slightly.
It’s another matter if this mortgage is for business purposes. The terms of such agreements are much stricter, there are many sanctions, and the interest rate on such loans can be significantly higher.
Payment procedure
The presence of buildings on the site is secondary, since the owner can buy land for development or receive a site with a house on it.
If you purchased land and built a house on it, then you need to pay tax on it in the next reporting period. For example, if you build a house in the fall of 2021, you pay from the beginning of 2021. At the same time, the house is considered built only after it has been put into operation and the relevant documents have been received.
When buying a house on a plot, the tax amount for the current year is divided between the seller and the buyer. As a rule, payment must be made before November of the current year.
If you are worried about payment deadlines, remember that the tax authorities send out notices about this. The amount of tax you pay in a particular case depends on the inventory value of the property. This figure is indicated in the technical inventory documents of the house. The tax office receives information about the object automatically from departmental organizations.
