Below we have tried to provide answers to some of the most frequently asked questions by our customers regarding purchasing property in Moscow. If you have any further questions, please do not hesitate to contact us.
Are there any restrictions on foreign investors buying property in Moscow?
No, there are no restrictions on the purchasing of property by non-Russian citizens.
Is there a difference between foreign individual and corporate ownership of properties in Moscow?
Both are permitted and the registration process is the same. It is, however, significantly more expensive to register as a foreign company than an individual, and there can sometimes be problems when trying to arrange the payment of bills and services. Please contact for further advice.
Are there any taxes on buying property in Moscow?
It is not necessary to pay tax when purchasing the property, and the property taxes are minimal.
Are there any taxes on sale proceeds?
When selling a property, you are required to pay tax only on capital gains, at 13% for tax residents (anyone who spends more than 183 days a year in Russia) and 30% for non-residents.If you are a tax resident and have owned the property for more than 3 years, you are then exempt from all takes, and if you have owned it for less than three years you are entitled to an exemption of up to one million Roubles.
Who pays the brokerage fee in Moscow?
Whoever requires the service, be it the buyer or the seller. The fee is usually counted as a percentage of the sale price, normally 2-5%, depending on the value of the property.The broker for the buyer will deal with assisting with the property search, documents of ownership, arranging the closing of the deal and the supervision of the property transfer. The broker's fee for the seller encompasses property appraisal and evaluation, marketing, arranging property viewings, negotiation, preparing all necessary documentation and the supervision of the transfer of the property to the buyer.
How do I find a property to buy in Moscow?
Despite, or perhaps because of, the great wealth of information available on the internet on purchasing property in Moscow, finding the right property for you can sometimes seem an exhausting and daunting prospect, which is we at the At Home Moscow will personally assist you in selecting a property based on your specific criteria, and advise you on the advantages and disadvantages of each potential purchase, whilst providing you with as much information on the property and the surrounding area as you need.
Most sellers already have an agent. Do I need a real estate agent on my side?
We highly advise you to employ an agent when negotiating with sellers, especially if you are not experienced in the Russian property market. This is because an agent will be able to provide you with their expertise and knowledge, thus minimising risk and ensuring a safe investment.
I have found a property to buy, can you assist me with doing the title search and finalizing the transaction?
The At Home Moscow offers a comprehensive legal service for anyone wishing to purchase a property in Moscow. This includes, but is not limited to; the title search, investigating the seller's background, preparing a purchasing agreement, arranging bank transactions and assisting with documentation regarding notaries and registration. We usually charge around half of our normal broker's fee, although please contact us to confirm exact pricing.
Why do I need to check a property's history?
Russia has a complicated past with regards to property ownership, so we advise that you investigate fully the property ownership history of your intended property in order to ensure that you don't suffer from challenges of ownership at later date.
What will be my purchasing expenses?
The buyer is expected to cover all fees involved in the closing of the deal, including notary and state registration fees and bank costs, as well as any agency fees owed.
Is it necessary to use a notary?
It is not required by law to use a notary during the purchasing process, although we recommend that you consider your individual case, with our assistance, in order to assess whether the situation requires a notary in order to ensure the safety of the deal. Notaries are liable for the legality of the contract and costs range from 0.7%-1.5% of the selling price.
How are property rights registered?
Registration of the property is made with the Main Department of the Federal Registration Service in Moscow and can be arranged by either a notary or a realtor. The fee is usually around $100 and the process takes approximately two weeks.
What are the main steps of a sale-purchase transaction in Moscow?
Once you have found a property that you are interested in and a price has been agreed, it is necessary to sign a preliminary agreement and research the apartment's history. You are then required to prepare and then close the deal, make payment and complete registration of ownership, and then arrange the transfer of the property.This process can take anywhere from 2 weeks to several months, depending on the documentation required and the complexities of the financing involved.
Is the listing price legally binding in Russia?
No, often the property prices can increase during the purchasing process, and with the generally increasing market prices, even after the signing of the preliminary contract it is possible that the seller will choose to increase the price, although there are financial penalties for doing so.
In order to close the deal, and if payment is to be made in cash, it is necessary to deposit the full amount of the transaction in a safety deposit box, usually with the assistance of a bank official to ensure authenticity. The cost of this is usually covered by the seller. Once this has been completed the two parties sign a sale-purchasing agreement which is then submitted for state registration, and once accepted, the transfer of the property can take place, and an Accepatance Act must be signed in order to show that both parties have accepted and agreed to all the conditions of the contract.. If you choose to pay for the property using another method, the procedure can vary, so please contact us to discuss the most appropriate way of making payment.