The rules have been changed for calculating the amount of rent for federally owned land plots

Pepeliaev Group advises that Resolution No. 191 of the Russian Government dated 10 February 2023 has been adopted. It has introduced material changes in the Rules for assessing the amount of rent for lands owned by the Russian Federation[1].

According to the amendments which have been adopted, the amount of rent for federally owned land plots will no longer be assessed based on the market value of the right to rent.

Instead, the annual amount of rent for land plots where buildings, constructions or facilities under construction are located will now be assessed as 3% of the cadastral value of the corresponding land plot, provided that there are no statutory grounds for another rate to be applied of the amount of rent.

The above amendments came into force on 21 February 2023. Any amount of rent calculated prior to this date based on the results of an assessment of the market value of the right to rent a land plot should be reassessed according to the new rules upon the expiry of 5 years from when such value was established.

What to think about and what to do

Tenants of federally owned land plots are recommended to become acquainted with the amendments and, if the grounds exist, to initiate a reassessment of the amount of rent under the rent agreement according to the new procedure.

Help from your adviser

Pepeliaev Group’s experts provide comprehensive legal support to tenants of land plots, including representing them in negotiations and disputes with landlords, and provide advice on amendments in land and civil law.

[1] Resolution No. 582 of the Russian Government dated 16 July 2009 “On the general principles of assessing the amount of rent when state or municipally owned land plots are rented and on the Rules for assessing the amount of rent, as well as determining the procedure, terms and conditions for paying rent for lands owned by the Russian Federation”.