The Civil Code governs the sale and purchase of real estate in Russia.
Under this law, foreign citizens are subject to certain restrictions related to the ownership of specific properties; however, if they decide to sell property in Russia, there are no such restrictions.
In Russia, there are two main types of rights on real estate: the ownership right (possessing, using, and selling of the property) and the lease right (possessing and using the estate according to the terms agreed with the landlord).
Should you need legal guidance, counseling, and further details on how to sell a property in this country, our Russian lawyers can help you with all the documents and procedures needed to complete the transaction.
Foreign or Russian citizens deciding to sell the real estate property in this country can benefit from legal assistance offered by our law firm in preparing the documents related to such a transaction. Our lawyers in Russia specialize in providing a wide variety of legal services, including guidance in starting a business for foreign entrepreneurs.
According to the Civil Code, there are several ways can acquire ownership over real estate. When selling a property in Russia , the owner needs to know their rights over the property. The following types of ownership rights are acknowledged in Russia :
- – land plots or real estate properties that have been inherited by the current owners, which can sell without any legal problem;
- – mortgaged properties that cannot be sold without prior notification to the bank and the person to buy the real estate.
In the latter situation, the buyer will be required to assume the mortgage over the property. However, it is good to know that mortgaged property sales are infrequent in Russia .
The selection criteria in Russia do not usually include a property’s physical condition, as in most cases, buyers prefer doing their renovations and arrangements. However, other sale conditions are seen as more important, namely the legal aspects of the property and the completeness of the paperwork (done by the seller). For example, if you have inherited the estate, you should register the title before selling it. If you have Russian relatives registered on your property, you should write them at another address, thus putting it on the market free of third-party rights.
The owner of a Russian property is not required to complete any specific steps when selling unless they want to. One can advertise the sale of the respective property on specialized websites or with real estate agencies.
When preparing the sale of real estate, the proprietor must ensure that:
- – they have all the documents which need to be presented during the transaction;
- – they are the owners of the properties – the property deed must bear their name;
- – they draft a pre-sale or directly a sale-purchase agreement with the buyer;
- – they have paid all the taxes related to owning a property, according to the Russian law;
- – they provide all the documents the buyer will need to register the property in their name.
It is also essential to know that the property seller has the right to verify the person or company when selling real estate in Russia. Our law firm in Russia can ensure the real estate due to diligence procedure on behalf of sellers and buyers.
The sale of commercial properties in Russia is quite common. Many foreign companies setting up operations here are also interested in acquiring office buildings or land plots to carry out their functions. While there are certain restrictions related to purchasing land plots in certain areas, the purchase of private-owned commercial real estate is permitted.
It is important to note that the sale of commercial real estate will imply a thorough verification of the buyer and assistance from a law firm in Russia.
Another aspect to consider is that commercial real estate sales can be part of an acquisition deal for an entire business, a case in which specific clauses apply. Our attorneys in Russia can guide local companies interested in selling real estate as part of an acquisition deal by complying with the legislation in this sense.
Both the seller and the buyer need to prepare a set of documents when completing a real estate transaction. This set of documents must comprise:
- – the identification papers (ID or valid passports) of both the seller and the buyer;
- – the sale-purchase agreement, which both the seller and buyer must sign;
- – the property title which the seller must bring upon the completion of the transaction;
- – a power of attorney, if one of the parties has enabled a third person to complete the transaction on their behalf;
- – the mortgage holder’s consent if the property is subject to a mortgage.
Our Russian lawyers can help the seller prepare the documents when such a transaction is completed. We can also offer representation during the transaction if the property owner is not in the country. We only need a power of attorney to represent them.
Once the transaction is completed, we can also ensure the former owner no longer appears in the Land Register’s records to avoid paying additional taxes.
The video below presents the main steps required to sell the real estate property in Russia :
Must register the sale-purchase contract with the State Registrar for the Property Rights and Deals. There are two kinds of registration in Russia:
- – the expedited registration (which can take up to two weeks); a fee has to be paid per entry, and if the purchased property is a building that has land, a separate price is necessary for registering the ground as well;
- – the usual registration (which takes up to four weeks).
The sale transaction usually takes place in a bank. The seller and the buyer execute a preliminary contract, describing all the conditions of the deal that is about to be closed and stating the list of documents that have to be provided by the seller. After the payment, both have to sign the agreement before a notary or realtor. You can ask our attorneys in Russia for more information or advice on issues related to selling a property or other legal matters.
The tax rates depend on the tax residency of the vendor. Typically, persons who exceed 183 days per year in the Russian Federation are seen as tax residents, and the tax rate is 13%. These sellers have to pay taxes on the capital gains. In the case of owning a property for more than three years, the vendor is exempt from all taxes. For non-residents, there are no tax exemptions, and they have to pay 30% on the sale proceeds.
If you are searching for professional legal assistance, feel free to contact our lawyers in Russia. We can help both the seller and the buyer complete any residential or commercial real estate-related transaction. However, you can also rely on us for assistance in other legal matters, such as starting a company in Russia.
Related: Open a llc company in Russia
Get help starting your business.
- Company registration in Russia
- Do you want to open a company in Russia?
- Legal services in Russia
- Interim management services in Russia
- 10 Steps to Open a company In Russia
- Company Act in Russia
- Open a LLC company in Russia
- Limited Liability Company in Russia
- Register a Joint Stock Company in Russia
- Register company in Russia
- Starting a business in Russia
- Business ideas for Russia in 2022 – The ultimate guide
- Creating an LLC for Real Estate Investments in Russia: Pros & Cons
- Starting Business In Russia
- Starting a Individual interpreter(IP) in Russia
- How Do You Name Your New LLC Company?
- Russian oil brands – Oil brands in the World
- Legal regulation of cryptocurrencies
- Business in Russia
- Start business
- Registration in Russia
- Set up LLC in Russia
- How to start your own business
- How to start a business
- Limited Liability Company
- Setting up LLC online
- Open a Russian construction company in Dubai
- How to Open a Business in Russia: Opening a Clothing Company
- Operating an LLC company From Home
- How to Start a Catering Business in Russia
- How to start a startup in Russia
- Register a Hotel in Russia
- Open a Website in Russia
- Open Cryptocurrency Company
- Open Company in the Healthcare Sector
- Open a Travel Agency in Russia
- Open a Business in Coffee, Tea and Spices
- Open a IT Company in Russia
- Open a Company in Agriculture
- Open a Publishing company in Russia
- Open a Company in the FMCG sector in Russia
- Open a company in Forestry in Russia
- Open a Restaurant in Russia
- Open company in the Construction sector
- Remote company set up – Russia
- Open Franchise business
- Open Jewelry Business in Russia
- Banking, Finance and Capital Markets in Russia
- Purchase Shelf Company in Russia
- Regulation of Marketplaces in Russia
- Public mergers and acquisitions in the Russian Federation
- How to Buy an LLC
- Capital Market Rules in Russia
- Purchase a Company in Russia
- Due Diligence and Compliance
- Mergers and Acquisitions in Russia: The Insider’s Guide
- Acquire information about a Russian Company
- Difference between Investor from an Shareholder – with the case
- Russian Company – Selling Shares
- Buy Property in Russia
- Buy land in Russia
- Mergers & Acquisitions
- Litigation, Arbitration and Dispute Resolution
- Accounting and Tax
- Financial outsourcing
- Tax guide for doing business in Russia
- Tax planning in Russia
- Expedited audit of accounting
- Financial system of the Russian Federation
- Double Tax Treaties with Russia
- Business Tax Audit
- Keeping accounting records in Russia
- Simplified taxation system in Russia 2022
- Tax consulting services in Russia
- Tax audit
- Tax help, accounting and business services
- Do you need to get a Power of Attorney in Russia?
- Antitrust & Competition
- Arbitration Court in Russia
- Legal services for evolving IT companies
- What Is an LLC Operating Agreement?
- Copyleft vs. Copyright
- How to Manage Disputes with Your Business Partners
- How to Type the Registered Trademark Symbol
- How to Find the best Lawyer in Moscow
- Legal advice for using copyrighted material
- 8 most common Legal Missteps Made by Startups in Russia
- Intellectual capital: A value that makes an organization much more resilient to various forms of crisis
- Intellectual Property in Russia
- Insolvency, Bankruptcy and Restructuring
- Employment Law
- Energy Law in Russia
- Corporate law in Russia
- Commercial Law
- Construction and Infrastructure in Russia
- Bankruptcy Law in Russia 2022
- Liquidation of representative offices and branches of foreign organizations
- LLC company Liquidation in Russia
- Closing down a representative office in Russia
- How to make quick and effective restructuring of companies in Russia
- Debt Collection in Russia
- Liquidation of Business in Russia
- Company liquidation in Russia
- Bankruptcy Basics in Russia: Everything You Need to Know
- What to Look For in Your Franchise Agreement in Russia
- Small Business Funding: How to Finance Your Small Business
- 10 Missteps Entrepreneurs Make When Projecting to Business Investors in Russia
- How Original Does Your Business Idea Need to Be in Moscow?
- The Best eCommerce Companies in Russia 2022
- Business Ideas for a Stressed-Out World
- 8 Most Promising Small Business Ideas You Can Start Today
- Your Startup’s Considerable Valuable Asset Is Its Intellectual Property
- How To Successfully Opening A Business In A Down Economy
- Should I Have a PayPal Business Account?
- What Does L.L.C. Mean at the End of a Company Name?
- Record breaker grow of foreigners – new Russian passport holders
- How Much House Can I Afford?
- Does Your Enterprise Truly Need a Facebook Page?
- How to Create an Invoice Template for Your Business: Tips and Tricks
- What Is a Bill of Sale and How Can It Benefit Me?
- Blocking on the merger of Huya and Douyu
- 5 Hidden Startup Costs You Must Expect in Russia
- When Is the Adequate Time to Initiate a Business in Russia
- 10 Reasons to Start a Business Now in Russia
- Scandinavian investments in Moscow last year amounted to more than a billion dollars
- How to Pay Yourself in an LLC
- Is comeptitiveness good
- Characteristics of inflation in Russia 2022
- Small and medium-sized businesses will receive support through the SME platform from February 1, 2022
- Cooperation is the way to success – Valen Group
- THE LARGEST CONSTRUCTION COMPANIES IN MOSCOW: REVIEW 2022
- Austrian and German businesses have invested a total of $11.2 billion in Moscow’s economy
- What is a crypto airdrop?
- Simplified order to obtain a permanent residence permit in Russian Federation for foreign investors
- Top managers foreigners about Moscow
- Foreign investors trust the Russian currency
- The Cabinet of Ministers approved the decision to help businesses in the pandemic
- Obstacles to increase the foreign investments in Russia
- Business Tax Audit
- Keeping accounting records in Russia
- Trust in Russia – record breaker investments by foreign citizens
- Select Simplified procedure on loans for foreign citizens in the largest bank in Russia
- Simplified procedure on loans for foreign citizens in the largest bank in Russia
- What Is an IRS Tax Audit and when is it needed in Russia?
- New accreditation procedure for branches and representative offices in Russia