On Tuesday, the LDPR chairman, Leonid Slutsky, is set to forward to the Russian government a bill that would raise the tax-free threshold for real estate sales from 1 million to 2 million rubles. This development is reported by TASS, which references the text of the draft law itself. The measure aims to be incorporated into the Tax Code of the Russian Federation, signaling a meaningful shift in how personal income tax on real estate sales would be calculated for property owned for less than three years.
Under the draft, when housing, apartments, or rooms are sold by an owner who has held the property for under three years, the personal income tax would be assessed on the sale price after applying a tax-free threshold of 2 million rubles. In other words, the tax base would begin at the final sale amount minus 2 million rubles, rather than the current minus 1 million ruble exemption. This change effectively expands the amount of money sheltered from taxation for most typical transactions involving shorter occupancy periods, reducing the immediate tax burden for sellers.
The explanatory materials accompanying the bill emphasize how the current arrangement operates. For example, if an inheritance property with a market value of 4 million rubles was inherited in 2021 and sold in 2023, the receiver would face a tax calculated as 13% of 3 million rubles (that is, the 4 million rubles sale price minus the 1 million ruble tax-free portion). The new proposal, by contrast, would allow a 2 million ruble deduction, making the taxable base 2 million rubles and lowering the tax due accordingly. This shift is presented as a practical remedy to reduce the tax exposure on such sales, particularly within the context of family wealth management and housing turnover planning.
Proponents argue that increasing the tax-free threshold to 2 million rubles would ease household budgets and free up more funds for buying new homes, country houses, or renovating existing properties. Slutsky’s press team pointed out that the current tax relief has not changed since 2001, while real estate costs have risen significantly over the past several years—by about 60% for secondary market spaces and more than 110% for primary market values. In their view, increasing the tax-free amount would translate into tangible savings for many families, potentially reducing the overall tax paid on real estate transactions.
According to statements from Slutsky, the proposed reform would lead to noticeable reductions in the annual tax outlay for numerous homeowners, thereby supporting household financial flexibility. The announcements underscore the broader goal of aligning tax policy more closely with contemporary market realities and family financial planning needs. This context helps frame the bill as part of a larger conversation about housing affordability and economic relief within the housing market cycle.
Observers in Moscow note that the bill represents a specific policy choice intended to stimulate housing mobility and renovation activity, while maintaining the integrity of the tax system. If adopted, the reform would signal a shift in how real estate transactions are taxed for individuals who buy and sell property within a relatively short ownership window, potentially affecting investment decisions and market behavior in the near term. The discussion continues as officials prepare additional financial and social analyses to accompany the bill and its path through legislative review. (Cited from TASS and the draft document text).