Russia updates mortgage tax relief and wage policy

In a move aimed at easing the financial load on households, President Vladimir Putin signed into law a measure that exempts a portion of Russians from paying personal income tax on income tied to mortgage loans. The official text was published on the portal of legal proceedings, making the specifics of the relief available to the public. The measure covers loans used to build or buy housing, provided that the loan agreement was signed before December 31, 2024, and the borrower is eligible for a housing-related tax deduction that has been approved by experts. The new rules take effect from the date of publication, ensuring immediate applicability for qualifying borrowers. Analysts describe the step as part of a broader policy package aimed at supporting home ownership and easing household budgets in the face of economic pressures. For households that have entered into housing loans, this development could translate into a lower tax burden over the term of the loan, or a possible adjustment to how tax deductions are calculated when the housing project meets the stipulated conditions. The government has emphasized that the relief is targeted and conditional, with the understanding that only loans connected to personal housing needs will benefit from the tax exemption and only when the contract and the housing tax deduction criteria are met. The law’s publication marks the formal notification to tax authorities and financial institutions that the exemption applies to the specified category of borrowers. The move is being framed as a practical response to ongoing high housing costs and to support middle-class families seeking to secure a home in a market that has seen rising prices and tighter lending conditions. Experts note that the relief could help borrowers manage monthly payments more predictably, potentially improving credit stability and long-term financial planning for households that qualify under the new regime. The text also signals persistent efforts to align Russia’s tax system with housing policy goals, ensuring that housing-related deductions are transparent, verifiable, and administered consistently by the tax authorities. In summary, the new provision is positioned as a targeted tax relief for mortgage holders, designed to ease the burden of housing costs while maintaining fiscal safeguards and clear eligibility rules.