To avoid paying personal income tax (PIT) when selling residential property in Russia, the ownership period must now be continuous.
A new draft law has passed its first reading in the State Duma, introducing amendments to the Russian Tax Code that affect how PIT is calculated on the sale and gifting of real estate.
Key changes: Amendments to Article 217.1 of the Tax Code clarify that the minimum ownership period required for tax exemption must be uninterrupted. The countdown starts from the official registration date of ownership. Transfers of shares between co-owners will not interrupt the ownership period. Currently, this is guided by recommendations from the Ministry of Finance and the Federal Tax Service — not by law.
In addition to parents with two or more minor children, tax exemption will now also apply to families with disabled children, regardless of age, and also families where the second child is born after the property sale, but before April 30 of the following year
Individuals officially designated as foreign agents will lose all tax exemptions.
They will be required to pay PIT on Sale of real estate, Gifting of property, Inheritance — regardless of their relationship to the deceased