Across Russia, families with two or more children can reduce or even suspend real estate tax on qualifying housing under a specific set of conditions. The exemption tends to apply when the dependent children meet age criteria and the taxpayer is linked to the property. If the children are under 18, or if a student child remains under 24, the tax relief may be claimed by the parent or by the child who is listed as the taxpayer. Additionally, the property must have been bought no later than April 30 of the year following a sale, and its cadastral value must not exceed 50 million rubles. These details shape who can benefit and how much relief may be claimed.
Another route to relief comes from long ownership. If the owner keeps the new home for five years or more, the tax exemption can apply. Inheritances also play a role: real estate passed through family lines may be exempted from tax, and for some cases the exemption can be extended for three years with lifetime ownership. The net effect is that families creating stable ownership patterns, or those who come into property via inheritance, face lower or zero tax bills on their main homes. These rules are designed to support households that invest in long term residence and family stability, rather than short term market moves.
Officials emphasize that avoiding real estate tax is subject to penalties. Previously a twenty percent penalty existed, but under the new framework the penalty can reach forty percent of the unpaid tax. In addition to penalties, the tax system remains progressive, meaning that higher valued properties can push the effective rate higher. For example, selling a property valued at around 2.4 million rubles could push the tax burden to roughly thirteen percent when the progressive structure is applied. These measures aim to close gaps in compliance and ensure budget targets are met while maintaining fairness among taxpayers with different property values.
These changes ripple beyond Russia. Prospective buyers and investors notice that domestic tax rules, higher penalties, and value caps alter the math of purchasing and holding property. Some Russian residents report that cross border real estate purchases, including in Europe, become more scrutinized as the home country aims to strengthen tax collection and reduce avoidance. The practical outcome is that buying property overseas may feel more burdensome for families accustomed to favorable domestic reliefs and the certainty such reliefs provided in the past.
Overall, the evolving tax landscape for real estate in Russia reflects a shift toward clearer criteria and stiffer penalties. While families with children can still access exemptions under known limits, the combination of ownership duration requirements, value caps, and higher penalties changes the calculus for buyers. As buyers weigh domestic reliefs against international markets, the bottom line remains that real estate decisions now include a greater focus on long term ownership, family status, and regulatory compliance.