Property taxes from 1 April 2027: what the bill changes

The State Duma has passed at first reading a bill drafted by the Federal Tax Service of Russia. It would abolish increasing coefficients for high-value plots for individual housing construction, introduce exceptions to the 10% cap on tax increases and expand tax benefits.

What is proposed

The State Duma has passed at first reading a bill drafted by the Federal Tax Service of Russia as required by the Constitutional Court of the Russian Federation. The changes are scheduled to take effect from 1 April 2027.

Land tax

For plots for individual housing construction valued at over RUB 300 million, including those used for commercial purposes, it is proposed to abolish the increasing coefficients of 2 and 4 for protracted construction.

Cap on tax increases

For individuals, the 10% cap on annual tax increases will remain but will not apply where there is a change in:

• the area of the property;
• the land category;
• the permitted use of the plot;
• the purpose of the building.

An ordinary revaluation of cadastral value and a correction of the year of construction do not lift the cap.

Tax benefits

Family members of participants in the special military operation, as well as parents and adoptive parents of military personnel, will receive federal tax benefits, including property tax benefits, regardless of dependant status. It is proposed that these rules apply from 2022, and tax may be recalculated.

Source: Peterburg2.ru