Foreign citizens have the right to purchase housing on the territory of Russia on an equal basis with Russian citizens. However, in accordance with article 15 of the Land Code of the Russian Federation, there are a number of restrictions in terms of land acquisition by foreigners. Thus, foreign citizens and stateless persons do not have the right to own land plots located in the border areas. It is not allowed to provide foreign citizens with plots of land that are in state or municipal ownership. Also, it is prohibited to transfer ownership of agricultural land. The restrictions provided for foreign citizens on the acquisition of agricultural land by them do not apply if the land plot is acquired by a foreign citizen for individual housing construction (for example, the construction of a residential building).
Now about the documents. Your friend must have a document confirming the legal presence in the territory of the Russian Federation. This is either a visa, or a residence permit, or a temporary residence permit in the Russian Federation, or a migration card.
Also, your friend, when registering property rights to real estate, is obliged to present an identity card of the form that is established by the legislation of his country. It can be either a passport or another similar document. This document must be submitted to the registering authority both in the original, for comparison and comparison of authenticity, and in the form of a notarized copy with a translation into Russian. After checking the documents, the notary certifies the signature of the translator who translated them into Russian.
After your friend checks the package of documents for the apartment, a purchase and sale agreement is drawn up. The real estate purchase and sale agreement is made in a simple written form in the presence of a notary and is certified by him in accordance with the procedure established by the legislation of the Russian Federation. The contract of sale and purchase of real estate is considered concluded from the moment of its signing by the parties to the transaction, but becomes legal only after its state registration with the local authority for registration of rights to real estate and transactions with it. With this registration, both parties to the transaction are submitted to the registering authority. After registering the purchase and sale agreement, the parties sign the act of transferring the property. After signing this document, the money is transferred from the buyer to the seller.
After acquiring real estate in ownership, your friend will not be able to register in it permanently. Since registration at the place of residence is possible only for citizens of the Russian Federation, and foreign citizens can register only at the place of stay. A foreign citizen who has entered the Russian Federation must register within three working days from the date of arrival in Russia. If you change your place of stay, you must register again within three working days from the moment you arrive at the new place. That is, the acquisition of real estate does not provide any additional benefits associated with the regime of stay in Russia, in particular, it does not provide visa benefits and advantages, does not remove registration problems, and does not facilitate obtaining a work permit.
What you need to know about buying real estate in Russia by foreign citizens
State borders are becoming more and more blurred every year. People themselves choose where to stay and buy real estate.
Foreigners often buy real estate in the Russian Federation. However, when buying an apartment or other real estate, a foreign citizen should take into account certain nuances.
Neither constitutional nor legislative norms impose restrictions on the rights of foreign citizens regarding the ownership, use and disposal of real estate in Russia. Without civil status in the Russian Federation, it is possible to purchase a house, apartment, or land. At the same time, the law prohibits buying plots:
The algorithm for buying real estate by a foreigner in the Russian Federation consists of the following stages:
1. A foreign citizen chooses an object in the Russian Federation that meets his needs. To do this, he reads ads for the sale of real estate, makes appointments to sellers to inspect the premises, and uses the services of realtors.
2. After selecting the optimal housing, the foreigner enters into a preliminary agreement with the seller. It will be valid until the main contract is drawn up. At the stage of preparation, the property is checked for legal purity. The buyer needs to make sure that the seller has the right to sell real estate and is legally competent.
3. A sales contract is drawn up in writing.
4. Official registration of the transfer of ownership rights to a foreigner is carried out. This procedure is performed in Rosreestr or a multifunctional center for the provision of public services.
5. Based on the results of checking the information provided, Rosreestr employees make changes to the real estate register. The foreigner is provided with an extract confirming the changes.
6. The buyer pays for the purchase in full.
7. The dwelling is transferred to the foreigner under the act of transfer, which is signed by each participant in the transaction.
To acquire Russian real estate, a foreign citizen must legally stay in the state. This means that he must enter the country in accordance with the established procedure (with or without a visa document), stay in Russia for at least ninety days.
Consequently, a foreign citizen will need to prepare documents confirming that he has complied with all migration norms.
In addition, you need:
If a foreigner buys a second home, the transaction is made at a notary office. When buying an apartment from a developer, the transaction is concluded at the seller’s office. If a foreigner speaks Russian poorly, the help of an interpreter will be required.
The contract is drawn up in 3 copies. After registration, the transfer of ownership from the developer to the foreigner is required to register with the Federal Register. Certain real estate companies submit documents themselves. In other cases, a foreign citizen must visit the Rosreestr institution or the MFC with all the necessary documents.
All settlements in the Russian Federation must be carried out in the ruble currency. However, in the agreement, it is possible to prescribe a link between the ruble and a certain exchange rate. It is possible to transfer funds to the seller both in the form of cash (through a cell in a banking organization), and in non-cash form (letter of credit).
A foreign citizen may be refused the purchase of real estate for the following reasons:
The seller needs to make sure that the foreigner is legally staying on Russian territory. If you sell real estate to a person who has illegally entered the Russian Federation, the transaction will be canceled or will not take place at all.
Also, the procedure for selling real estate to a foreigner has the following features:
Foreigners are not required to pay tax deductions when purchasing real estate. At the same time, a foreign person who becomes the owner of housing in the Russian Federation must pay a statutory tax on real estate. These tax deductions are classified as regional, their size is determined by the city administration. When calculating the tax, the cadastral value of the property is taken into account. It must be paid every twelve months.
The seller will need to pay taxes on the income earned from the transaction. The tax is thirteen percent on income. At the same time, an increased tax is established for foreigners selling real estate in the Russian Federation, the amount of which is thirty percent of the income received.
A non-resident of the Russian Federation is a person who has stayed in Russia for less than 183 days in the last year.
The exception is the military who serve abroad, as well as civil servants posted to a foreign state.
For employees of embassies, the status is established in a special order.
Purchase methods
On my own
Neither constitutional norms nor federal legislation impose restrictions on non-residents in the ownership, use and disposal of real estate in Russia. They can purchase a house / apartment, land for individual residential construction or a plot for subsidiary farming. The law prohibits non-residents from buying plots that:
To conclude a transaction, a non-resident is required to have identity documents. They must be translated into Russian and certified by a notary. Apostille is placed at the place of registration of the document. A similar requirement applies to citizens of states participating in the Hague Convention. If real estate is acquired by residents of the CIS, they will only be asked for a passport with a translation.
The sales contract is drawn up in Russian. A non-resident buying real estate needs to understand all of its points. According to the law, all disputes are resolved at the location of the property. The standards for the maintenance, protection and operation of real estate are regulated by the laws of Russia.
The buyer needs to check:
By entrusting the purchase of real estate to a notary, a non-resident can significantly simplify the procedure. The notary will develop a draft transaction, which is a list of actions to be carried out, will do the following:
When concluding a transaction, the notary reads the terms of the contract to its participants, explains all the legal consequences of the procedure.
After signing the agreement, the notary submits papers for registration of ownership in Rosreestr. The buyer will only need to receive the completed documents at the notary office.
It is much easier and safer to transfer funds to a seller through a notary deposit, and not through a safe deposit box in a bank. The notary accepts money from the buyer in order to later transfer it to the seller of the property. The buyer is provided with a receipt, which confirms the fact that funds have been deposited into the notary deposit.
The purchase of real estate involves certain risks. A buyer of real estate should be wary if at least one of the following factors is present:
Knowing the nuances of processing real estate transactions, a non-resident can avoid numerous problems associated with Russian legislation.
We offer you to look at interesting information on the topic:
Everything about how to buy an apartment for a foreigner: documents, registration and taxes
State borders are becoming more transparent. Everyone chooses for himself where he is and where to have housing or other real estate. Foreign citizens often buy apartments in Russia, just as Russians buy real estate abroad. This is no coincidence.
The fact is that in Russia there is a fairly liberal regime for foreigners. They can acquire almost any property in their ownership without a huge amount of information and paperwork. For a number of foreigners, the price of Russian housing will seem pleasant because of the ratio of the ruble to their currency. Tax rates are also quite attractive, lower than in other countries.
These advantages give rise to the question: “How can a foreign citizen buy an apartment in Russia?” In this article, we will consider the primary real estate market, that is, housing in new buildings.
Let us dwell on two main purchase mechanisms: a contract of equity participation (when purchasing in a house under construction) and a contract of purchase and sale from a developer (in a finished house).
For the developer, it makes no difference who is the party to the DDU or the sales contract. It can be:
All of them have the right to purchase a variety of real estate, both residential and non-residential, for example, apartments.
The developer is only interested in the contract being fulfilled and funds from the participant in the shared construction received.
The talks about toughening the requirements for foreigners have been going on for a long time. Individuals are taking the initiative to tighten real estate transactions for foreigners and demand the introduction of special permits. Despite heated discussions, such a bill was not adopted.
The constitution in paragraph 3 of Art. 62 equalizes the rights of Russian, foreign citizens and stateless persons. All of them can freely own, use and dispose of real estate, and also have the opportunity to judicially protect their rights.
There is still a certain list of restrictions for foreigners. There are not as many of them as in other countries, but they are necessary. This is not a whim of the legislator, they stand guard over state integrity and security.
All prohibitions are related to the purchase of land. For example, you cannot buy a land plot in a number of border areas or closed administrative-territorial entities. This must be borne in mind if you purchase a townhouse with land. A complete list of closed entities can be found in the Decree of the Government of the Russian Federation of July 5, 2001 No. 508.
Thus, a foreign citizen is allowed to buy an apartment, as well as a room, house, part of an apartment or house.
The nuances of the purchase are provided for by the Federal Law “On the Legal Status of Foreign Citizens in the Russian Federation” and relate to the requirements for identity documents when concluding a transaction.
The main document is the passport of a foreign citizen. It must be translated into Russian, and the translation itself must be notarized. If the translation is made by a foreign notary, then it must be apostilled (usually in the form of an imprint of a seal or stamp).
A variety of myths can be found about the purchase of a home by a foreigner. Most of them have nothing to do with reality. Everything is not as complicated as it seems at first glance.
There is an opinion that a foreign citizen can conclude a contract of sale and purchase of an apartment only if he has a residence permit. This is mistake.
Residence permit – a document confirming the right to permanently reside in the country. The fact of residence or the absence of such has nothing to do with the property. A foreigner can easily buy an apartment and immediately leave for his home country.
For the transaction and registration of the contract, the legal basis for staying in the country is important. They can be:
In other words, even a tourist visa is enough for the purchase, if its term has not expired.
Apartment tax
Each owner of the listed property is obliged to pay tax once a year at the rate established by local authorities.
It should be remembered that some money will have to be spent on the sale. Personal income tax by a foreign citizen tax resident must be paid at the rate of 13% of income. Non-residents, i.e. foreign citizens who are not actual taxpayers in Russia will pay 30% of the income received.
Recall that a tax resident (taxpayer) is a person who actually stays in Russia for at least 183 days within 12 consecutive months. At the same time, the period of stay is not interrupted, with the exception of short-term treatment or training.
To purchase a home under a preschool education or sales contract, you need:
Can a foreign citizen buy an apartment if his spouse is not in Russia? No problem. A foreigner can issue her notarial consent in his country: at the Russian consulate or at any notary. In the latter case, it requires an apostille, and then notarization by a notary in Russia.
Purchase and sale agreement of an apartment or a preschool institution for a foreign citizen
The text of the agreement itself, the procedure for concluding and state registration is no different. There are no special rights or obligations for foreigners.
The contract must be drawn up in Russian. If desired, it can be drafted in two languages. Its form, content and procedure for appeal is determined in accordance with Russian law.
For buying and selling an apartment – simple writing. Notarization only in case of purchase of a share in the right. A simple written form is also required for the DDU, however, it always refers to the whole object, and not to the share.
The contract of purchase and sale of an apartment must contain:
It is advisable to include in the text the terms of cash payments, transfers, the procedure for resolving disputes
Mandatory conditions of the equity participation agreement:
As a rule, a contract for the sale and purchase of an apartment with a foreign citizen is drawn up in the developer’s office. If a foreign citizen does not understand Russian well, then an interpreter may be present at the transaction. All conditions for a foreign citizen must be clear.
The agreement is drawn up in triplicate. After the signing of the DDU agreement or the transfer of ownership under the purchase and sale agreement, it is necessary to register with Rosreestr. Some developers send the documents themselves. There is the possibility of electronic registration. If this is not agreed, then the buyer must take all copies to the territorial branch of Rosreestr or submit them to the MFC.
In addition to the contract, the buyer provides:
Only from the moment of state registration, the contract is considered concluded. The transfer of the object itself is accompanied by an act of transfer and acceptance. If we are talking about preschool education, then the developer is obliged to transfer the apartment after putting the house into operation.
All payments on the territory of our country are made in rubles. The agreement does not prohibit linking the ruble to the exchange rate of any country in the world.
The transfer of money can be carried out both in cash (using a safe deposit box) and in non-cash form (for example, a letter of credit).
Investing money in the purchase of real estate today is still one of the most profitable investments, both for Russians who invest in foreign real estate and foreigners who want to engage in the development of domestic territories.
In this article we will answer the following questions posed: what rights are vested with foreigners wishing to purchase real estate in Russia? what benefits does Russian legislation provide them? what is the taxation procedure for foreign owners of Russian real estate? Look for answers to these and other questions below.
Domestic legislation does not in any way restrict the rights of foreign citizens in matters of acquiring and disposing of domestic immovable objects, be it an apartment, a private house or a land plot.
Moreover, all manipulations with her real estate are allowed even without Russian citizenship. Those. a foreigner who wants to buy, for example, an apartment on the territory of one of the constituent entities of the Russian Federation, is not required to have Russian citizenship or even a residence permit.
Despite this permissiveness, the legislation approved a list of immovable objects that cannot be acquired by representatives of foreign states. These include:
Wishing to purchase real estate in the territory of the Russian Federation, many foreigners are interested in the question of whether they will receive any benefits or discounts when buying a real estate object in one of the regions of the Russian Federation.
But having found the answer, many of them are disappointed, since the state does not provide for anything like this for foreign homeowners. This means that it will not be possible to obtain a residence permit or Russian citizenship in a simplified manner on the basis of a desire to purchase real estate from foreign citizens.
Those. buying, for example, an apartment, a foreign owner only acquires an immovable object, becoming the owner of Russian real estate. This status:
By purchasing an apartment in Russia, a foreigner gets only a place where he can temporarily register for migration registration and obtaining a temporary residence permit. A foreign citizen will not be able to issue a permanent residence permit even in his own home, since only legal representatives of the Russian Federation who have the corresponding Russian citizenship have such a right.
When buying Russian real estate for a foreign citizen, you cannot avoid taxation. So, when buying an apartment in Russia, real estate tax for foreigners is levied at a rate of 0.3 to 2% of the market value of the real estate object.
With regard to the sale, in this case, the foreign citizen will have to pay tax in the amount of 30% of the value of the immovable object.
To conduct a transaction for the sale and purchase of real estate, a foreign citizen will need to confirm the legality of his stay in the territory of the Russian Federation.
The following documents can do this:
In addition, a foreign citizen who is legally married will have to provide the written consent of his spouse to carry out this procedure.
Features of the acquisition of real estate by representatives of foreign states are as follows:
You should be a little more careful with the purchase of a land plot. Before proceeding to the stage of concluding a contract for the sale of land, it is recommended to contact the mountains. administration to clarify the possibility of purchasing it (perhaps it is included in the list of prohibited ones).
As for the procedure for enrolling in tax residents of the Russian Federation, for this a foreigner will need:
Results: the acquisition of real estate by a foreign citizen is no different from its acquisition by an ordinary Russian. As is customary, a real estate purchase and sale transaction is concluded in the presence of a notary officer, and then is registered with Rosreestr. If, subsequently, the foreigner plans to sell the purchased object, it is better to do this by first giving it to his wife (if any). In this case, it will be possible to avoid the need to pay 30% tax.
Not only native residents, but also foreign guests can become the owner of a house or apartment in Russia. Although this phenomenon is quite rare, since it is more convenient for citizens of other states to rent a house for themselves than to buy it, having spent a large amount at one moment. The advantage of renting is also the fact that you do not need to look for someone to sell your home to if you move. However, the purchase of real estate by a non-resident in Russia is still rare, but occurs.
The concept of residency was introduced and regulated by the Tax Code. This is how citizens who live and receive income in the country are defined in order to establish fair taxation. The tax rate for non-residents is higher than for local residents: in this way the state protects its interests and prevents money from flowing abroad.
In accordance with the legislation, in order to obtain the status of a resident, you must have lived in the territory of the Russian Federation for more than six months, or, to be precise, 183 days during the last year.
Buying a home only from the outside seems like a rather difficult task, but in reality everything can be done quickly and without hesitation, the main thing is that all documents are in order. The transaction procedure itself is no different: it is the same for both Russians and foreigners.
But still, there are certain restrictions on the conclusion of these transactions. First, foreigners are prohibited from buying land plots if they are intended for agricultural work. Secondly, citizens of other countries can buy real estate only in those areas where non-residents are allowed to live.
In order to carry out a transaction, a foreign citizen must prepare the following package of documents:
The presence of the buyer during the sale and purchase transaction is not always necessary. A foreigner, like Russians, can provide a power of attorney for the right to conclude transactions for the purchase and sale of real estate on his own behalf to another person. This document is not only notarized, but also apostilled. Once the documents are certified, they can be used in all countries that have signed the Hague Convention.
Citizens of other states, instead of an apostille, will need to certify a power of attorney at the consulate of their country, and this document will be valid only on the territory of Russia.
The sale of an apartment in Russia by a non-resident takes place on a general basis and the procedure itself is no different from the standard one adopted for Russians. However, there is a big difference in taxation: in accordance with the Tax Code of the Russian Federation, the income tax rate for residents is 13%, and for non-residents – 30%.
The calculation of the object of taxation from which tax will be charged to the state treasury is carried out as follows: the cadastral value of real estate as of January 1 is multiplied by a reduction factor of 0.7. However, the regions of the Russian Federation have been given the right to independently set the size of the reduction coefficient up to 0 by their regulations.
If a non-resident has been living in Russia for more than six months, then he can count on the absence of taxation of income received from the sale of housing, if he owned it for three years and at the same time the right of ownership was obtained:
In all other cases, you must wait at least 5 years to sell your home and not pay income tax.
Real estate tax for non-residents in Russia is represented only by income tax at the rate of 30% of profits. At the same time, persons who are on the territory of the Russian Federation for less than six months are not entitled to deductions and benefits. So, a resident may not pay taxes if he has owned a home for less than 3 years, when the income he received from the transaction is less than 1 million rubles.
In addition, it will not work to reduce the tax on the sale of real estate by a non-resident in the amount of actually incurred expenses, since they will not be taken into account.
When planning to sell real estate, a non-resident needs to think twice about whether the transaction is worth such expenses: it may be more expedient to rent housing first and live in Russia for more than 183 days in order to obtain resident status and the right to all relevant benefits.
The procedure for purchasing real estate by non-residents in Russia does not differ from the procedure for purchasing real estate by citizens of other countries. Of course, there are certain minor restrictions on:
Real estate in the framework of state and communal ownership.
A foreign individual has the opportunity to acquire ownership of a non-agricultural land plot, which is located within a settlement.
A non-resident can become the owner of non-agricultural land located outside the settlement of the site, if there is an object of his / her property on it (real estate). All restrictions are imposed on foreign citizens who are individuals or legal entities registered abroad. If a foreign legal entity is registered in the Russian Federation, it is considered a resident, therefore no restrictions apply to it.
In some countries of the world, the purchase of real estate by non-residents has benefits. For example, the citizenship of the country where the property was purchased, a residence permit, tax cuts or tax cancellation, and the like. In Russia, such privileges are not provided, however, all foreign citizens when buying real estate can enjoy the same rights as Russians. According to experts, foreign experience in acquiring automatic citizenship after purchasing real estate could attract foreign investment from Arab countries and China. The location of Russia makes it possible to get closer to both Europe and Asia, and the citizenship of our country is attractive to some foreigners.
An advantage for foreigners who invert to our country amounts of 100 thousand US dollars and more. It is possible to obtain a permit for immigration in Russia, and also authorizes the issuance of a certificate of permanent residence. However, foreign investment differs from the purchase of real estate by non-residents, in that first these funds are registered on the territory of our country, and only then, they are allowed to be used to purchase real estate.
A foreigner who has decided to buy housing in the Russian Federation needs to apply to the tax authorities in order to obtain an identification number, which is issued within two weeks. In order for a foreigner to order an identification number, a translation of his passport is needed. You should also be aware that when selling the purchased real estate, problems may arise with the return of non-cash funds, as well as the payment of interest if the property was sold at a higher price than it was bought.
