Higher rates of property taxes: will Moscow be in time?

This summer, amendments to the Tax Code allowed the constituent entities of the Russian Federation to raise the rate of property tax and of land tax to 2.5% for properties whose cadastral value exceeds RUB 300 million.

There is a catch. For the new rate to apply from 2025, the regional law must be signed before 1 December 2024. The regional authorities have only a few days left.

What about Moscow?

As of today, 27 November, the Moscow City Duma does not even mention a draft law that would raise the rates of these taxes. What is more, no sittings for the coming days are on the agenda.

What does this mean?

If the Moscow Government does not introduce a bill, and the Duma does not pass it, in the couple of days that remain, the higher rate of property tax will not take effect in the capital in 2025.

For reference: from a rise in the rate of property tax alone, the city budget could (or still can) receive:

• RUB 27 billion in property tax from non-residential property;

• RUB 0.7 billion from residential property;

• RUB 14 billion from land plots.

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