How to reduce rent or land tax without going to court

This is about the draft report of the state cadastral valuation published by the state budgetary institution (GBU) that carries out the cadastral valuation in Moscow.

A real example shows how important it is, and how worthwhile, to analyse a report on the state cadastral valuation for possible errors in the calculation of cadastral value.

At the beginning of 2024 an organisation that leases the land under a shopping centre came to Consul Group. The task was to reduce the rent.

A court? Not an option. Reducing the cadastral value of land plots in court is now practically impossible, and the procedure takes more than a year.

The asset valuation department of Consul Group analysed the GBU's calculation and found a coefficient that had not been taken into account, and that ought to have reduced the cadastral value and the rent.

The lawyers prepared the evidence and filed an application with the GBU.

The result? Within 30 days the GBU reduced the cadastral value, by RUB 209 million.

And this is where the draft report of the state cadastral valuation comes in

The point is that, in the draft report of the state cadastral valuation for 2025, the GBU adjusted the "draft value" downwards by 10%, taking into account the error we had identified at the beginning of 2024. That means our partner does not have to start the process of reducing the cadastral value all over again, unlike those who deal with the problem through the courts. Those owners will have to go to court again in 2025.

What matters: correcting errors in the calculations of a state cadastral valuation has a long-term effect. Reduce the cadastral value once, and the process can be left alone for many years.

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