Following this year’s cadastral revaluation, taxes on some luxury apartments in Moscow have increased 30-fold—with payments for certain properties rising from hundreds of thousands to several million rubles.
Anna Radzhabova, Director of the Luxury Real Estate Department at Metrium Premium, explains that the key threshold is 300 million rubles. Once a property exceeds it, regional authorities are entitled to raise the tax rate from 0.3% to 2.5%.
The combined cadastral value of 20 properties in Khamovniki, Zamoskvorechye, Presnya and the Patriarch’s Ponds area rose from 3.3 billion to 7 billion rubles.
The sharpest increase was recorded for an apartment on Plyushchikha Street: its tax rose from 268,800 to 11.2 million rubles. The annual payment for a property in Granatny Lane will now amount to 29.5 million rubles.
Radzhabova does not expect a wave of sales of such homes, but points to a likely reduction in the time properties spend on the market: at the new rates, a prolonged wait for a buyer is becoming too costly for owners.
Anna Radzhabova, Director of the Luxury Real Estate Department at Metrium Premium, explains that the key threshold is 300 million rubles. Once a property exceeds it, regional authorities are entitled to raise the tax rate from 0.3% to 2.5%.
The combined cadastral value of 20 properties in Khamovniki, Zamoskvorechye, Presnya and the Patriarch’s Ponds area rose from 3.3 billion to 7 billion rubles.
The sharpest increase was recorded for an apartment on Plyushchikha Street: its tax rose from 268,800 to 11.2 million rubles. The annual payment for a property in Granatny Lane will now amount to 29.5 million rubles.
Radzhabova does not expect a wave of sales of such homes, but points to a likely reduction in the time properties spend on the market: at the new rates, a prolonged wait for a buyer is becoming too costly for owners.