Real estate and construction

Property losses must not be taxed as imputed income The Russian Constitutional Court instructed that uncertainties in the payment of personal income tax be eliminated when property is exchanged. However, the Court’s position is noticeably broader: property losses cannot be taxed as imputed income.

Increased Land Tax to Accelerate Development: Awaiting the Position of the Russian Supreme Court Appeals have been filed with the Russian Supreme Court in two cases concerning increased coefficients of land tax applied in order to accelerate residential development.

Regulated rent for using land plots in state or municipal ownership will be calculated based on the cadastral value Pepeliaev Group advises of the draft law that the State Duma has passed in the third reading concerning how regulated rent will be determined for land plots based on their cadastral value.

Amendments have come into force to regulate relationships that involve using and preserving cultural heritage sites Since 15 April 2024, amendments have come into force to Federal Law No. 73-FZ «On cultural heritage sites of the peoples of the Russian Federation» dated 25 June 2002.

The Constitutional Court has protected potential cultural heritage sites

The Russian Constitutional Court has adopted Resolution No. 17-P dated 11 April 2024. This determines that courts can prohibit facilities from being demolished until a dispute is resolved for them to be treated as cultural heritage sites.

Rosreestr has clarified the legal treatment of power grid facilities

The Federal Service of State Registration, the Cadastre and Cartography has published a Letter to sort out discrepancies relating to the classification of power grid facilities as either movable or immovable property.

The rules for changing the purpose of and remodelling premises are being supplemented

Pepeliaev Group advises that, on 1 April 2024, Federal Law No. 608-FZ dated 19 December 2023 comes into force, clarifying the rules for changing the purpose of premises to residential or non-residential and the procedure for their remodelling.

The liability of developers under shared construction agreements is limited until 31 December 2024

A Resolution of the Russian Government has been adopted that establishes special conditions for applying a penalty and other financial sanctions and measures of liability for the non-fulfilment of obligations under shared construction agreements.

The Russian Government has defined the specific aspects of archaeological reconnaissance and a historical and cultural expert review The Russian Government's Resolution No. 2418 dated 30 December 2023 has been adopted.

Amendments to the law on technical regulation The system of technical regulation in construction has been amended.

Real estate transactions are invalid without the consent of the government commission The State Commercial Court for the Moscow Circuithas confirmed the position of the appeal court, according to which a sale and purchase agreement of real estate entered into in the absence of the consent of the Government Commission on Monitoring Foreign Investment in the Russian Federationis an invalid transaction.

Arbitral tribunals may consider disputes on real estate

The Russian Constitutional Court has adopted a Resolution aimed at eliminating contradictions between arbitral tribunals and state courts regarding the arbitrability of disputes in the area of real estate.