Property tax for non-residents of the Russian Federation

Are you planning to improve your living conditions or simply get rid of a property that you have owned for less than 3 years? Then I’ll tell you about the tax when selling an apartment: how to calculate it and whether it can be avoided completely. After all, from the point of view of the tax code of the Russian Federation, the proceeds are income that can be taxed.

Many people also forget about tax deductions, which government agencies are not required to notify you about, but they can be used when calculating taxes. How to correctly calculate and minimize the amount of mandatory payment this year?

⠀Tax on the sale of an apartment

Before 2020, you had to own the apartment for at least 3 years, in which case you were exempt from paying income tax upon sale.

Later, amendments were adopted: from January 1, 2020, in order not to pay tax, you must own an apartment for at least 5 years. It is not difficult to calculate that if you purchased a home in 2020, you would be freed from the obligation to pay taxes on the sale of an apartment only in 2021.

⠀ Are there any exceptions? Tax exemption after 3 years was retained for those who became owners of:

• upon inheritance or under a gift agreement from a family member or close relative;
• as a result of privatization;
• as a result of the transfer under a lifelong maintenance agreement with dependents.

What good things happened in the new year for homeowners? ⠀ From January 1, 2020, changes have been made to the Tax Code of the Russian Federation. Now everyone who owns only one home is exempt from paying tax when selling an apartment after 3 years, not 5 years!

ATTENTION‼ At the time of sale, you must not have any other residential premises. This applies to both personal property and joint property with a spouse.

The new edition has one small bonus for the second apartment. If the second apartment is purchased within 90 days before the sale of the first, it is not counted as a second property.

Agree, it’s convenient if you bought a new apartment and need to sell the old one. Remember, you have 90 days! Between registration dates you must meet this deadline. ⠀ Let's look at examples.

• You bought an apartment in November 2020 for 5,000,000. This is your only apartment. You decide to sell it for 9,000,000. In 2020, you will not have to pay tax. If they had sold in June 2019 and indicated the full price in the contract, they would have had to pay tax in the amount of 520,000.
• You bought your first apartment in 2020, the second in 2020. If, when selling any of them in 2020, you decide to indicate a price higher than you bought, there will be a profit tax of 13%. In this case, you will be exempt from taxes upon reaching 5 years of ownership of this property.
• You bought your first apartment in 2020, you bought the second at the beginning of January 2020. You can sell the first in March 2020 with a profit, there will be no tax, as new rules apply.

Taxes are simple in theory and complex in practice.

When is it necessary and when is it not necessary to pay tax on the sale of an apartment?

You are reading this article, which means it is at least the end of summer 2020 or even... Wow, how time flies!

In general, now think like this:

• if the ownership of your apartment was registered before January 1, 2016, you can safely set any price when selling it, and you will not have a tax;
• If you took ownership after January 1, 2016, then you have to wait 5 years to sell the apartment tax-free, and then, when selling for a higher price, taxes will not arise.

Exception: in case of gift, inheritance, privatization and annuity agreement, the period of ownership without paying taxes will be 3 years.

Real estate sales tax for non-residents

Agreements and Conventions concluded between the Russian Federation and other countries (not all countries are included in this list) completely exclude the possibility of double taxation. If payment of tax on income from sales in the Russian Federation is confirmed, the taxpayer is exempt from paying this tax in the territory of his country. And if not, then you must pay in your own country.

1. Arrive in Russia 183 days in advance to obtain resident status and subsequently enter into a real estate purchase and sale agreement (for many this is not possible).
2. By donating an apartment to a close relative - a resident of the Russian Federation for its further sale, you can reduce the tax from 30% to 13% (since the relative will own the apartment for less than 3 years), but there is a risk of losing the property if the relative decides to deceive you.
3. In the absence of a resident relative, the apartment can be sold at a reduced price and 30% will not seem like such a large amount, but this is a deception of the state.

27 Jun 2020 stopurist 710
Share this post

Related Posts
• Certificate at the birth of a child for a lump sum allowance for the birth of a child
• Example of an apartment donation agreement between close relatives, 2020
• What documents are needed to return income tax for an apartment?
• Bailiffs withdrew money from the card, how to find out why

Bought - sold. What's the tax?

Keep in mind: a tax of 13% is paid on the PROFIT received. The obligation to pay tax is set out in Article 220 of the Tax Code of the Russian Federation. ⠀ Some people worry that if they bought an apartment for 5,000,000 and want to sell it, and 5 years have not passed yet, then when selling they will pay 13% of the cost of the apartment (13% is 650,000).

And when they urgently need to sell an apartment, in order not to pay that kind of money, they still sit and wait for 5 years to pass. And in vain. Because: ⠀ TAXES are paid on PROFIT!

⠀ Bought for 5,000,000, and sold for 6,000,000. Profit = 1,000,000. From this 1 million you pay tax (13% is 130 thousand rubles).

Keep in mind:

Expenses for the purchase of an apartment that you are now selling must be documented. To do this, you will need a purchase and sale agreement for the apartment and a receipt for the transfer of money in payment.

What tax does a non-resident pay?

If the apartment was sold by a non-resident of Russia, then the tax rate for him will be 30%. The right to a property deduction is not provided for non-residents.

Real estate tax for non-residents in Russia

What property tax obligations do they have? When do you need to pay taxes?

Do I need to register (register with the tax office), or will I receive a tax notification automatically that I have paid what is required? Does everyone need to pay or can the entire tax amount be paid to one of the owners. Taxpayers (hereinafter referred to as taxpayers in this chapter) are individuals who have the right of ownership of property.

The sister independently found buyers and sold the apartment, indicating the total price of $3,500,000.

We recommend reading: Article 124 of the Labor Code of the Russian Federation 2020

And after some time, I received letters from the tax office and was horrified!

To prevent you from getting into a similar situation, I will try to answer the most common questions related to property taxes for non-residents. In accordance with Article 210 of the Code, for income taxed at a tax rate of 13 percent, the tax base is determined as the monetary expression of such income subject to taxation, reduced by the amount of tax deductions due to the taxpayer, provided for in Articles 218 - 221 of the Code.

Cadastral value: what does it affect?

Since January 1, 2016, compliance with the cadastral value has been made mandatory. Previously, everything was simple - bought for 10, sold for 10 according to documents, there was no fixed profit - and, accordingly, no taxes.

Now the tax office takes into account 70% of the cadastral value as the minimum cost of the apartment and looks at whether you are evading tax or not.

Examples:

• You bought an apartment for 10,000,000. You are selling it for 16,000,000. Its cadastral value is 15,000,000 (70% of the cadastral value = 10,500,000). Even if you indicate 10,000,000 in the apartment purchase and sale agreement (APA), 10,500,000 will be taken into account.

The profit will be 10,500,000 – 10,000,000 = 500,000, from which 13% will be charged. And it makes no sense for you to put a figure in the DCP that is less than 10,500,000 (70% of the cadastral value).

• You bought an apartment for 10,000,000, and are selling it for 16,000,000. The cadastral value is 20,000,000 (70% of the cadastral value = 14,000,000).

The DCP indicated 10,000,000, they will take 14,000,000 into account, and charge you 13% on 4,000,000 (10,000,000 – 4,000,000) profit.

• Bought for 10 million, selling for 16 million, cadastral 10 million (70% = 7 million). In this case, if 10 million is indicated in the contract, no tax is charged.
• Bought for 10, selling for 16, cadastral 25 (70% = 17.5). In this case, the tax will be 7.5, even if you indicate the real sale price in the contract.

When do you not have to pay tax?

If you inherited an apartment, there will be no income tax.

If you were given an apartment by close relatives, then donations between relatives are also not subject to tax. ⠀ What are loved ones like? Close relatives are:

• grandmother grandfather
• parents (adoptive parents)
• spouses
• children
• grandchildren
• brothers and sisters (even step-brothers)

In all other cases, you will have to pay tax. For example, if an uncle gives an apartment to his nephew, the latter will have to pay 13% of the cost of the apartment.

In this case, to avoid tax, it is better to do so. An uncle gives an apartment to his brother/sister, but a sister/brother already gives it to their son. So you got rid of the extra 13%.

Apartment as a gift or inheritance: is there a tax on sale?

If the apartment was inherited or given to you, then you got it for FREE! And if you owned this apartment for less than 3 or 5 years (depending on who received it - a close relative or not) and decided to sell it, you have an income tax. ⠀ ATTENTION!! When inheriting, count 3 years not from the emergence of ownership rights, but from the day of death of the person who left you the apartment.

Example: You are selling an apartment worth 5 million rubles. The cadastral value is also 5. Since you got the apartment for 0 rubles, you will pay tax on 5 million. It will be equal to 650 thousand rubles.

Is it possible to pay less?

You need to understand what figure the tax office will take into account as the minimum cost of your apartment (I remind you that 70% of the cadastral value is taken into account).

Let the cadastral value be equal to the sale price - 5 million rubles, 70% of the cadastral value = 3.5 million rubles. There is no point in putting a price in the contract below this figure. But it is precisely this, instead of 5 million, that can be indicated.

In this case, the tax will no longer be 650, but 455 thousand rubles.

How to find out the cadastral value of an apartment?

Now there are various services and databases where you can find information about the cadastral value of an object.

In St. Petersburg, for example, such information can be found in the RGIS service (find an object - find out the cadastral value).

Property tax deduction

Need to know:

You have the opportunity to reduce the taxable amount by 1 million rubles once a calendar year. (property tax deduction), but only when selling one property.

If you want to sell 2 apartments, it is better to sell them in different years.

Go back to the previous examples:

• In the first option, the deduction will help you pay taxes not on 5 million, but on 4 million.
• In the second option - not with 3.5 but with 2.5.

In both cases, the tax will be reduced by 130 thousand rubles. (13% of 1 million rubles).

Attention! A property deduction can be applied in cases where expenses confirmed for the purchase of an apartment are not taken into account (or are missing).

Tax return

Tax on sale of an apartment:

If you sold an apartment in 2020, then you need to submit a declaration by April 30, 2021 (for 2020, it was postponed by 3 months due to the virus) and pay by July 15, 2021.

The declaration is submitted when receiving income from the sale of property while owning the property for less than the required period for tax exemption. Did not file 3 personal income taxes, even if you do not have to pay tax (no profit), a fine of 1000 rubles.

There are fines and penalties for late payment of taxes.

Personal income tax from non-residents of the Russian Federation in 2020-2020

Nevertheless, we will present arguments in favor of this approach. So, in paragraph 4 of Art. 210 of the Tax Code of the Russian Federation states that tax deductions determined by Art. 218–221 of the Tax Code of the Russian Federation, do not apply to non-residents. However, this rule does not say that the tax base cannot be reduced by the amount of expenses if they are related to the purchase of subsequently sold property. That is, there is no direct ban on such an operation in the Tax Code of the Russian Federation.

More to read: Benefits for veterans of military operations in the Kemerovo region in 2020

For taxation of income of non-residents received from the sale of property, the period of ownership does not matter, and personal income tax is still charged. This is a significant difference from the taxation of such transactions performed by residents, for which clause 17.1 of Art. 217 of the Tax Code of the Russian Federation provides for a minimum period of ownership of property:

Property tax

If you own real estate, you need to pay property taxes.

Let's consider residential real estate - an apartment, a room, a residential building. The tax amount depends on the tax rate percentage. The calculation is based on the cadastral value, and not on the value specified in the purchase and sale agreement.

Regional authorities can set their own tax rates, but not exceeding the base ones by more than 3 times.

For example, in St. Petersburg, for residential real estate, the progressive scale of rates depending on the cadastral value of the property looks like this:

Apartments with cadastral value:

• up to 7 million – 0.1%;
• from 7 to 20 million - 0.15%;
• 20−300 million — 0.2%;
• over 300 million – 2%.

As a bonus, there is a deduction for cadastral value when calculating property tax:

• for residential buildings – 50 sq.m.;
• apartments – 20 sq.m.;
• rooms – 10 sq.m.

Example #1:

Apartment 50 sq.m., cadastral value 15,000,000 rubles. You owned it throughout 2020. Tax for 2020 is calculated as 15,000,000/100*0.15 = 22,500 rubles. - this is for 50 sq.m. But there is a deduction of 20 sq.m.

Therefore, 22,500 rubles. / 50 m2.* 30 m2.= 13,500 rub. — final tax payable.

Example #2:

If you have a studio with an area of ​​20 sq.m., the cadastral value is 20,000,000 rubles, then due to the tax deduction, the tax will be zero.

Real estate tax from January 1, 2020

At the beginning of 2020, the transition period providing for the rules for determining property taxes will end. From January 1, 2020, real estate tax will be calculated and depend not on the inventory assessment, but on the cadastral value of the property.

Property tax for individuals

Real estate tax is a type of property tax and is paid by individuals who have ownership rights to real estate, recognized by law as an object of taxation. Such objects include:

1. A building that has the status of a residential building, including on lands for individual housing construction.
2. An apartment in an apartment building, a room in an apartment or a residential building. The exception is the common property of an apartment building.
3. Garage building or parking space.
4. Unfinished construction projects.
5. Other buildings with an area of ​​more than 50 sq. meters located on land plots, including those having the status of household plots, horticultural plots, vegetable plots, in cases provided for by law.

The rules for determining real estate tax are regulated by the Tax Code of the Russian Federation. However, this type of tax is considered a local tax. Therefore, it is established by regulatory acts of the constituent entities of the Russian Federation.

The procedure for determining real estate tax based on cadastral value

The rules for applying the definition of real estate tax depending on the cadastral value of the taxable object are contained in Art. 403 of the Tax Code of the Russian Federation. In accordance with the above norm, from the 2020 reporting year, when calculating tax, the cadastral value of real estate entered into the Unified State Register of Real Estate is taken into account and is current as of January 1 of the year from which the tax period is calculated.

Revaluation of the cadastral value is carried out no more than once every five years, however, it is possible to change the price entered in the register by submitting an application to the dispute resolution commission or through the court, if the result of the consideration of the dispute by the commission is negative. A review should be initiated if:

• errors and inaccuracies were made when determining the cadastral value;
• the qualitative and quantitative characteristics of the property have changed.

Changes in the rules for determining real estate tax also affected changes in the percentage tax rate.

The rules for calculating the amount of tax are determined by federal legislation, but the benefits and features of determining the tax base are established by the representative bodies of municipalities.

In accordance with Article 406 of the Tax Code of the Russian Federation, the tax rate varies from 0.1 to 2%.

Regional authorities have the right to reduce the rate to zero or increase it.

Property tax changes in 2020: latest news

The rules for calculating real estate tax depending on its cadastral value increase the tax amount on average three times, which was negatively perceived by the population.

The Constitutional Court of the Russian Federation, considering the issue of the constitutionality of tax payments, came to the conclusion that the innovations comply with the Constitution of the Russian Federation. This was stated by the Chairman of the Federation Council Committee on Constitutional Legislation and State Building Andrei Klishas.

In particular, he stated: “From January 1, 2020, the property tax for individuals should be calculated only on the basis of the cadastral value.”

In 2020, the reduction coefficient provided for the transition period for individuals ceases to apply.

For organizations in 2020, a new rule for paying real estate taxes has been established. Thus, a legal entity that is a payer of such tax in several tax authorities at the location of real estate objects owned by it has the right to submit a single tax report to the tax authority chosen by it.

Features of paying property taxes for pensioners

In accordance with clause 10, part 1, art. 407 of the Tax Code of the Russian Federation, persons receiving a pension are entitled to benefits in paying real estate taxes. Such persons include pensioners receiving any type of pension, as well as men over 60 years of age and women over 55 years of age.

You can apply for preferential taxation by contacting the Federal Tax Service office at your place of residence with an application. The application form is approved by the tax office and is a form that must be filled out. In addition to the application, it is necessary to submit copies of documents confirming this right and copies of documents for the property subject to taxation.

You should know that the application must be submitted before November 1 of the year preceding the tax period. The law allows you to use the benefit only for one type of real estate.

Changes in tax payment for non-residents in 2020

Payment of tax on real estate owned by a non-resident is made by such person on the same basis and in the same way as for residents. In 2020, for non-residents, the changes affected only the payment of real estate tax upon its sale. From the beginning of the year, such persons are exempt from paying tax if:

1. The property was registered in the name of a non-resident during the privatization process, was donated, received as an inheritance from a family member, became property as a result of a lifelong maintenance agreement, and was owned by a non-resident for more than three years.
2. The property was purchased by a non-resident or registered as a property on other grounds and was owned for more than five years.

This rule applies only to real estate acquired by non-residents after 2020.

When to pay property taxes in 2020

There are no changes to the deadlines for paying property taxes for citizens in 2020. The mandatory payment must be made before December 1 of the tax period. In case of late payment, penalties are provided in the amount of 1/300 of the current refinancing rate of the Bank of Russia for each day of delay.

In 2020, tax legislation introduced a rule providing for the opportunity to pay taxes in advance. Such payment can be made through your personal account. During the period prescribed by law, funds will be automatically written off and counted as tax payment.

Payment of property taxes in Moscow in 2020

In Moscow, real estate tax since 2020 is calculated based on cadastral value.

The capital was among the first 26 regions in which new tax rules came into force almost immediately after the changes were made to the Tax Code. So in 2014 the city law was adopted.

Moscow No. 51, the latest changes to which came into force on January 1, 2020. The law provides for the real estate tax rate:

• 0.1% for objects with a cadastral value of up to 10 million rubles for garages and parking spaces;
• 0.15% worth from 10 to 20 million rubles;
• 0.2% worth from 20 to 50 million rubles;
• 0.3% worth from 50 to 300 million rubles and unfinished construction projects.
• 2% worth over 300 million rubles.

Tax incentives are provided for non-residential real estate, the cost of one square meter of which does not exceed 100 thousand rubles, the building is not used in commercial activities and as an office of an enterprise, with an area of ​​no more than 300 square meters. meters.

Source: https://zakon.world/nalog-na-nedvizhimost-s-1-yanvarya-2020-goda.html