Tax on a privatized apartment in Moscow

What means?

Apartment privatization – what is it? Privatization of an apartment is the process of transferring state property into private hands .

Typically, such a transfer is used to generate additional revenue for the budget or to get rid of problematic property complexes. Housing privatization has completely different goals.

Russia is following the market path of development. It is necessary to transfer the work of housing and communal services to these rails.

Pay attention to modern apartment buildings: homeowners, united in partnerships, enter into contract agreements for the provision of utilities and maintenance of their houses.

In this case, state governing bodies perform an exclusively supervisory function . State residential premises in which people live under a social tenancy agreement do not fit into this scheme at all And today such apartments still make up about 14% of the total housing stock.

What does privatization of an apartment give, why is it necessary for a specific person? After it, the tenant of the apartment gets the opportunity to do whatever he wants with his, now, real estate: sell, exchange, bequeath or donate. Now the tenant has his own housing , and he received it completely free of charge .

However, there are also pitfalls in this process. Therefore, in the next section we will discuss whether it is worth privatizing an apartment in Khrushchev.

What is a “Privatized apartment”?

Privatization is the procedure for transferring objects from the state or municipal housing stock into private ownership. Re-registration is available to everyone who has a title document for housing. That is, a social tenancy agreement or a move-in order.

The procedure is always carried out on a voluntary basis. It is impossible to force someone to become the owner of municipal property. Transactions made under duress can be easily challenged in court.

After completion of the re-registration, the persons registered in the apartment become full owners of the property on the right of shared ownership. Each of the privatization participants receives a certain share in the apartment, which they can dispose of at their own discretion.

The procedure is regulated by Federal Law No. 1541-1 “On Privatization...”, as well as the Housing and Civil Codes.

What is a “Non-privatized apartment”?

Non-privatized housing is part of the state or municipal fund. Employers and their families have the right only to reside in the territory allocated to them by the state. One of two documents serves as the basis for moving into housing owned by a municipal entity:

• warrant (issued until 2005);
• social tenancy agreement (issued starting from 2006).

After re-registration of housing from municipal property to private property, it loses its “non-privatized” status.

Non-privatized housing includes:

• municipal apartments;
• service apartments;
• dormitories;
• residential property located in one of the closed military camps.

From this list, the law allows the privatization of only real estate owned by the municipality. Provided that they are not withdrawn from circulation and are not in disrepair.

If you want to register ownership of a service apartment, you must first transfer the property from service to municipal. This can only be done with the consent of the owner, that is, a department or organization. As soon as the housing is transferred to the balance of the city and a social rental agreement is concluded with you, you can begin privatization.

To find out the status of housing, just look at the receipt for housing and communal services. There, in the “owner” column, there is detailed information about the owner of the property. Also, information about the owner of square meters can be obtained from an extract from the Unified State Register or on the official website of Rosreestr.

What is the difference?

The legal status of housing affects the property and non-property rights of residents. Before you start privatization, you should have a comparative description - the main differences between privatized and non-privatized housing. Based on these data, it is easier to decide: is privatization necessary or is it better to leave everything as before?

The difference between a privatized and municipal apartment:

1. Non-privatized housing can become private property based on the privatization procedure. If the apartment has already been privatized, there is no need for transfer.
2. A municipal apartment is under the jurisdiction of local authorities, which means that the costs of maintaining the facility are borne by the administration. The employer and his family members are exempt from unnecessary costs. You have to maintain privatized housing yourself.
3. Accommodation in a non-privatized apartment is based on the terms of a social rental agreement with the municipality. As soon as the housing is privatized, the contract loses its force. Those living in a privatized apartment apply for regular registration at the UVM at their place of residence. The title document is an extract from the Unified State Register of Real Estate (from 2020 it replaced the previous certificates of ownership).
4. The owner of a privatized apartment can dispose of his square meters without regard to the municipality - they can be deprivatized, sold, donated, exchanged, mortgaged, bequeathed... If the housing is not privatized, only accommodation is available to the tenant and his family.

Tax on privatized property

Advice from lawyers:

1. If the apartment is not privatized, is property tax paid?

1.1. Hello! Owners pay taxes; if the apartment is not privatized, rent is required. “Payers of taxes on property of individuals (hereinafter referred to as taxes) are recognized as individuals - owners of property recognized as an object of taxation” (Article 400 of the Tax Code of the Russian Federation).

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2. Why should I pay property tax if my apartment is privatized?

2.1. Yes, everything is very simple, after privatization you become the owner of this apartment, and all owners are required to pay taxes.

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2.2. Good afternoon. If this is a legal issue, it is because, according to current laws, owners are required to make regular payments to the state treasury in the form of property taxes. Including if the apartment is privatized. However, the Tax Code of the Russian Federation provides for preferential categories of citizens who are partially or completely exempt from tax liability for real estate. And if this is a more philosophical question, then because our state has decided so, not only are they not helping us to buy, but they are also trying to take money from us.

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2.3. Hello. Yes they should. After privatization, the apartment becomes private property. Having received ownership of an apartment, its owner is subject to real estate tax.

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2.4. The owner of a privatized apartment is required to pay property tax annually. All rules related to taxation are prescribed in the Tax Code. Section 401 lists the items that are subject to taxation.

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3. Should a pensioner pay property tax for a privatized apartment?

3.1. Hello! No, according to Article 407 of the Tax Code of the Russian Federation.

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4. I live in Crimea in 3 rooms. apartment with her two daughters. The apartment is privatized for all three, i.e. The three of us each have our own share. I am retired, I am 61 years old. My question is: am I eligible for property tax relief? If yes, what do you need to do to get this benefit? Thank you!

4.1. Hello! As a pensioner, you have the right to receive a tax benefit. Submit to the tax authorities documents confirming your status Article 407. Tax benefits 1. Taking into account the provisions of this article, the following categories of taxpayers have the right to tax benefits: 10) pensioners receiving pensions assigned in the manner established by pension legislation, as well as persons who have reached the age of 60 and 55 years old (men and women, respectively), who, in accordance with the legislation of the Russian Federation, are paid a monthly lifelong maintenance;

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5. You own one apartment, the second 1/2 share is privatized, will property tax be charged on both apartments?

5.1. If you don't have benefits, then both.

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5.2. Yes, if the owner does not have property tax benefits.

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6. The apartment is privatized for three people. (grandmother, daughter and granddaughter). Can a daughter and granddaughter register (give) their shares to their grandmother in order to avoid paying property taxes?

6.1. Hello. Yes, of course, under a gift agreement.

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7. I privatized my cooperative apartment in 1993. Currently I have in my hands: a registration certificate from the Inventarizer enterprise, a certificate of the availability of my own apartment, a technical passport for my own apartment. I went to the MFC to get an extract for an apartment without a balcony, they told me that I needed to register with the registry office and that my documents were not correct at the moment. And I have been paying property taxes for many years. They are right?

7.1. Hello! Yes, you were told everything correctly. The ownership of the apartment must be registered with Rosreestr and an extract obtained.

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8. Which category of pensioners does not pay real estate tax? For example, a disabled person of group 3, about 45 years old, is already a pensioner. Should he pay these taxes (privatized apartment, land, house, etc.)?

8.1. All pensioners (pension assigned for any reason) are exempt from property tax for one object of each type (room, apartment, residential building, garage, parking space). Article 407 of the Tax Code of the Russian Federation. Land tax is another tax; benefits for this tax are established by local legislation.

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8.2. Old-age pensioners do not pay property tax. This exemption applies to one property - one house, one apartment, one garage. Article 407 of the Tax Code of the Russian Federation.

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9. In 2014, GSK was registered as a legal entity for three types of activities. Reporting is zero for all years. In 2020, the chairman (who is also the founder) carried out the privatization of the general building. The property tax came with penalties, the TC chairman did not know and missed the deadline for paying the tax. But 3 members (they are also co-founders of the GSK) refuse to pay, citing the fact that their boxes were privatized in 2020 (without a decision of the general meeting) and to date they have not left the members of the GSK.

9.1. Dear Svetlana, you can liquidate GSK as a legal entity. Everyone is required to pay a general property tax. It is necessary to refer to the Civil Code of the Russian Federation, the Tax Code of the Russian Federation and the general principles of civil legislation.

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10. I am a member of SNT, I regularly pay all dues. The plot is not privatized; there are country houses on it. If I do not privatize the plot and buildings, can I be deprived of membership in SNT and forced to pay property tax (dacha buildings)?

10.1. If YOU do not own the land, then YOU will not be able to pass it on by inheritance.

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11. I received a letter from the tax office stating that I owe property tax and penalties, the amount is not more than 642 rubles. The payment deadline is 12/03/18 and must be paid by April 2020. The tax office said that it will have to be paid annually. Questions: 1. Why did the letter arrive only now if the apartment was privatized in October 2020? 2. How can I pay this tax without penalties, so as not to wait for notifications of penalties?

11.1. You need to contact the tax authority with an official letter.

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12. If my share in a privatized apartment is 17 square meters, do I have to pay property tax? And should the husband pay less property tax in his privatized apartment if our minor children live with him?

12.1. Hello, you are the owner, so you will pay tax. Living with children is not a basis for receiving a tax benefit. Good luck and all the best.

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13. Should individuals pay property tax? persons (share in a privatized apartment), minor (15 years old), unemployed schoolchild?

13.1. Irina Andreevna, taxes for a minor are paid by his parents (legal representatives).

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13.2. Good evening! The responsibility to pay tax for a minor owner lies with his legal representatives, the parents.

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14. A friend has a family, a wife and many children, he privatized an apartment for his family, he was forced to pay property tax for the share for each child, about 700 rubles, is it correct that the children are not adults.

14.1. If the property is registered in the name of children, then taxes for them are paid by their legal representatives - their parents. Look at the Federal Tax Service website; in some regions, property tax benefits have been adopted for large families.

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15. My mother has a non-privatized apartment (1 room) (municipal). My aunt has an apartment that she received by gift (2 rooms) - (after the death of her grandmother). Now the aunt's son lives in 1 room. (mother’s apartment) and my husband and I are in my aunt’s 2 room. We want to make the exchange official. What is needed for this? Privatize your mother's apartment and make a deed of gift to your brother? Should I make a deed of gift for my aunt? And will we need to pay property tax afterwards?

15.1. Hello. Yes, for starters, the apartment needs to be privatized, and then donation or sale agreements must be drawn up.

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16. Lawyer in 1990 the apartment was privatized in shares of 4 registered 1/4 shares. After my father died, my mother took over the inheritance. Everything remains in force according to the documents and I pay tax on 1/4. Will this part become? A stumbling block after the death of my mother. Between me and my sister. When dividing property?

16.1. If your mother is alive, let her write a will for her part of the apartment, then there will be no litigation between you and your sister. Sincerely, lawyer Kulagina S.V. 8-906-517-70-67 Vyazma, Smolensk region.

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17. If a plot of 15 acres of land is privatized and a greenhouse is built on it, I have to pay property tax.

17.1. Sergey, according to the new law, any building that you have on your site will be taxed. You can find out how much you will need to pay for them after you register it. The only exceptions in this regard are pensioners.

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18. In 2002, an apartment for 3 people was privatized. in shared ownership. The children were minors at the time and bore their father’s surname. Then I got married and changed their first and last names. Upon reaching 18 years old, the eldest daughter also changed her middle name. The property tax comes in their old names, they don’t want to make a new entry in the register, as the tax authority will do in this case, I don’t want to pay for them either. But I am, as it were, a responsible tenant, what should I do?

18.1. Good afternoon There cannot be a responsible tenant in a privatized (transferred into ownership) apartment. There are only owners who own their shares and bear duties and responsibilities for them. If you do not pay tax on your daughters’ shares, the tax office will file claims against them, and not against you. It is your responsibility to pay tax on your 1/3 share.

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19. I have an apartment with my son in equal shares, my son is 10 years old, we receive a survivor’s pension, we received a property tax, my son is 500 rubles and I am 500 rubles, I also receive a survivor’s pension, the apartment has been privatized, do we have any tax benefits? property.

19.1. Hello, if you are not a pensioner or disabled, you must pay property tax. Although the law provides for tax breaks for everyone. When calculating property taxes 2020, you can apply tax deductions. By virtue of Article 407 of the Tax Code of the Russian Federation. So, when calculating the tax according to the cadastre, the cost can be reduced: by 10 sq.m. - for rooms; for 20 sq.m. - for apartments; for 50 sq. m. - for residential buildings.

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20. Hello, should a large family pay property tax? Apart from a privatized apartment (privatized in 2017), there is no other property. MOSCOW.

20.1. The status of a mother of many children does not exempt you from paying all taxes, including property tax. This is our social state.

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The apartment was privatized in 1991; now Rosreestr has no information about the owners of this apartment.

My grandson is 15 years old. Goes to school. A receipt for payment of property taxes has arrived. He has a share in a privatized apartment. Should parents pay for it?

The apartment was privatized “without determining the shares.” 3 people participated in the privatization.

My mother, sister and I are tied together in a privatized apartment. The apartment is for sale,

I have an apartment privatized in equal shares with my son. My son is registered in it, but I am not.

I am interested in how much I will have to pay in property tax if I receive 25 percent of the inheritance.

Previously, my parents and brother and I privatized an apartment and I am a roofer.

Do I have to pay an annual property tax for my privatized 2-room apartment in Moscow?

There is an apartment in Khabarovsk, we want to privatize for three minors and one adult, (61.8 kV) how much will the property tax be?

The husband privatized the apartment; two minor children were registered in the apartment.

In my personal account on the government services portal, a message appeared: Debt of property tax of individuals MRI Federal Tax Service of Russia No. 4 for the Altai Territory.

The essence and mechanism of privatization

Privatization of property is the process of transferring real estate from the original owner, represented by the state, to an individual - a citizen and members of his family.
Legal document for the procedure:

• social tenancy agreement for obtaining ownership of housing;
• a long-term lease agreement or an act of transferring land for indefinite use for the privatization of land plots.

The process of transferring real estate is carried out on a voluntary basis, the initiator is a resident citizen who has expressed a desire to register municipal real estate in his name. When privatizing an apartment, who is the owner depends on the number of persons involved in registering the transaction. If the transfer from the authorities passes to one individual, then the property after completion of the process will become his individual property, if to several participants, then each will own a certain share, and the real estate will become the object of shared ownership.

The right to privatization can only be exercised by citizens of Russia once in their lifetime with the consent of all registered residents, including minors who have reached the age of 14 years. After privatization, ownership rights are transferred in shares to all participants, with the exception of citizens who voluntarily renounce their due portion.

The implementation mechanism includes obtaining the consent of residents and submitting the following documents to the MFC:

• applications for the process;
• passports of residents and birth certificates of minor children;
• extracts from the Housing Office about the registered residents;
• certificates confirming early non-participation in the privatization of real estate;
• technical passport indicating the total area and cadastral value;
• agreement giving the right of residence or orders;
• consent of guardianship and trusteeship authorities with the participation of minors;
• notarized refusal of persons entitled to receive a share.

Thanks to the participation of the MFC in 2020, the process is extremely simplified, registration is carried out remotely to avoid queues, and photocopies of documents are made by specialists during a visit with simultaneous submission of documentation.

Assessing the need for privatization

To make a decision in favor of privatization or against it is necessary to highlight the differences between a privatized apartment and a non-privatized one and determine how significant they are in each specific case. Non-privatized housing is objects owned by state or municipal authorities, which transfer to residents, on the basis of a social tenancy agreement, the right to live without the possibility of performing legally significant actions.

The difference between a privatized and non-privatized apartment according to a number of significant parameters is presented in the table:

The undeniable advantages of privatization lie in obtaining absolute ownership of a property practically free of charge, including only payment for government services. Among the disadvantages, one should highlight the increase in maintenance costs, including liability in the event of force majeure situations.

When weighing the pros and cons when making a decision, you should pay attention to the following factors:

1. Person status. For example, it is not advisable for a single pensioner with no relatives to take on additional financial expenses and service risks.
2. Condition of the property. The privatized property of a “dilapidated” object requires major repairs at the expense of its own sources, and an illiquid plot of land will cause difficulties in the sale, while the right to further participation in the privatization process will be lost due to use.

Privatized and non-privatized housing: the difference in housing and communal services payments

Bills for housing and communal services in privatized and non-privatized apartments are not too different. An apartment is privatized: real estate is mainly privatized in order to obtain the right to carry out any operations with it: sell, transfer by inheritance, leave as collateral as collateral for a loan.

Interesting read: Who received a subsidy for a young family?

Of course, such a reform does not suit everyone. Many experts believe that the cadastral value is sometimes simply inadequate. The cost per square meter in an old building with worn-out communications can be tens of times higher than in a comfortable new building. Therefore, pensioners and other categories of residents, forced to save every ruble, are in no hurry to formalize the privatization of a house or apartment, fearing new extortions. So the share of privatized apartments on the market is unlikely to increase.

Property and privatization

The difference between property and privatization is that privatization is a special case of ownership, valid only for real estate when transferred directly from municipal authorities on the basis of regulatory law No. 1541-1 of 07/04/1991. For example, a privatized apartment is private property, the rights to perform legal actions are no different from taking possession in any other way: as a result of donation, purchase, inheritance, etc. What is the difference between a privatized apartment and a purchased one? There are no differences in the legal field. The difference is:

• in title documents (sale and purchase agreement instead of privatization certificate);
• in the costs incurred during the purchase in the form of a negotiated price, based on the market value, in contrast to the interpretation of Article 1 of Law No. 1541-1 on free transfer;
• having the right to choose (purchase is carried out at the request of the citizen, privatization only on the basis of a social rental agreement or perpetual lease of a plot).

The table shows in detail how privatization differs from property ownership according to a number of criteria:

When choosing between privatization and property acquired on the basis of other transactions, one should be guided by the undeniable advantages of the one-time right to transfer property values ​​from the state to an ordinary citizen without involving funds. However, it is necessary to assess the degree of importance of an object in undivided ownership from the point of view of alienation, comparing maintenance costs with the risks in the event of unforeseen situations, shifted to municipal authorities when limiting ownership exclusively to the right of residence.

Tax on the sale of a privatized apartment

Simply selling your privatized private real estate or apartment will not work - you need to pay tax for it. You should know that the purchase and sale transaction of such property is clearly stated in the Tax Code of the Russian Federation. The owner of the property pays personal income tax in the amount of 13% of its sale price. Since the sale of an apartment results in a significant amount, you need to understand in detail the intricacies of taxation.

When can you sell an apartment after privatization?

Privatized real estate is allowed to be sold only after taking ownership. This period at the beginning of 2019 is 5 years, i.e. After this period, you can take advantage of the tax deduction.

Property registration was 3 years ago

The profit received is subject to personal income tax at a rate of 13%. To make the amount smaller, use:

• property deduction - by 1 million rubles. sellers-owners of housing pay less for 3-5 years (clause 1, clause 2, article 220 of the Tax Code of the Russian Federation). Benefits are valid only for 1 object in 1 tax period;
• compensation for purchase expenses - tax is paid on the difference between the starting cost of real estate and the income from the sale. At the same time, when selling housing acquired through renovation, you can deduct the costs of purchasing both an old and a new apartment (clause 2, clause 2, article 220 of the Tax Code of the Russian Federation).

Advice! Use a property deduction if the acquisition costs are less than 1 million rubles.

The privatization deal took place after January 2020

If you privatized an apartment after January 1, 2020, then you can sell it immediately as soon as it becomes your property (from the moment of state registration), but you will have to pay the tax in full (13%) only after 60 months. The tax is calculated based on the comparison of the price of the privatization contract and the cadastral valuation of the highest amount.

Deductions from the sale of an apartment that has passed from state ownership to private ownership have a number of nuances:

Is it possible to sell immediately after registration?

You can sell privatized real estate immediately after state registration of the right, but there is a peculiarity if, after the sale of such property, a new one is purchased. For these precedents, offset is applied - its amount depends on the price of the housing sold or purchased. If you bought an apartment for more than you sold it for, the state makes a refund in the form of personal income tax on the purchase.

On a note! For other transactions, except inheritance and gift, a tax of 13% is charged.

Privatization of an apartment: pros and cons

Let's try to weigh all the pros and cons of privatizing an apartment. Let's start with the negative points :

1. The first thing you need to pay attention to is difference in payment privatized and non-privatized apartments. Utility bills are always paid by residents. The owner also bears the responsibility maintenance costs in good condition common property apartment building: attics, basements, elevator equipment, locking devices.
   If housing belongs to the state, then residents do not need to worry about this. The situation is completely different with people who have privatized their apartments.

   The simplest example is the installation and replacement of water and electricity meters. The tenant of the premises will receive these devices free of charge , and will not maintain them at his own expense.

2. Deserves special mention major renovation. Houses deteriorate over the years, communications require replacement, and this costs a lot of money.
   From 2020 owners of private housing stock have joined in financing future major repairs in the houses where their residential premises are located.

   In Moscow , for example, for each meter 15 rubles for future major repairs . For poor citizens, pensioners and disabled people, the amount can be significant.

3. Don't forget about real estate tax , which depends on the cost of the apartment. After you become the owner of the property, this payment will be added to the list of expenses.
4. When demolishing dilapidated housing, the owner of the apartment will be provided with housing of equal area . If a family occupies premises under a social tenancy agreement, then a new apartment will be provided taking into account sufficient space for one person . In other words, this is a very real chance to improve their housing situation completely free of charge , available only if they use housing under a social tenancy agreement.

Now let’s pay attention to the advantages of apartment privatization:

• free disposal of the apartment . You can rent out your property, sell it, exchange a privatized apartment, donate it, and, in the end, legally bequeath it to whomever you want;
• It is extremely difficult to evict a person from your own home. Try not to pay utility bills in a municipal apartment for six months - you will get an unambiguous hint of a quick move to the outskirts of the city or to a hostel; The owner will face a trial and, in the future, an exchange for housing of a smaller area so that the difference will cover the debts to the utility services.
  This happens extremely rarely, because the courts can drag on for years due to numerous delays and appeals of decisions.

  As a result, the owner will have time to resolve all financial difficulties and pay off debts.

  Or, as a last resort, take out a loan from the bank , for which the same apartment can act as collateral.

• Owning an apartment is insurance against changes in government policy.

As you can see, a privatized apartment has pros and cons ; decide for yourself whether you need it or not.

Pros and cons of privatization

Depending on the legal status of housing, the property and non-property rights of residents will vary significantly. Therefore, before you start re-registration, carefully study the consequences of privatization and analyze whether there is any benefit to it or whether it is better to leave everything as it is. To make it easier for you to make a decision, read the advantages and disadvantages of privatization.

Advantages of privatization:

1. Tenants of an apartment become its owners and receive the right to dispose of square meters at their own discretion. The new owner of the property can sell it, rent it out, mortgage it to the bank, exchange it, or indicate it in the will.
2. Real estate is given free of charge. Applicants will only need to pay for the services of the registrar and some other government services.
3. Redevelopment no longer requires approval from the local administration. It is enough to obtain permission from the BTI.
4. The risk that the owner will be evicted from the apartment for debts to utility services is minimal.

Disadvantages of privatization:

1. There is an obligation to pay monthly fees for major repairs. Maintenance of the house and surrounding area.
2. It is impossible to select a privatization object. The tenant has the right to re-register ownership only of the apartment in which he currently lives and in respect of which he has entered into a social rental agreement with the administration.
3. There is an obligation to pay annual property tax. The amount of which is 0.3% of the cadastral value of the property.

As you can see, after purchasing their own home, citizens are assigned a number of financial responsibilities that can be avoided by remaining in a municipal apartment. It’s up to you to decide whether to privatize your home or not, but just in case, we advise you to read the expert recommendations below.

How to pay tax

From 2020, to pay tax, you need to follow new rules. The duty base was previously set by the BTI; now this issue is regulated by Rosreestr. It is not the technical characteristics of housing that are taken into account, but its regional market value.

To pay, persons registered as owners after 2016 act as follows:

Size

The Tax Code of the Russian Federation does not specify the specific rate. It is set for a specific region. For example, here is the fee for Moscow residents in 2020:

• less than 10 million rubles. - 0.1%;
• 10-20 million rubles. — 0.15%;
• 20-50 million rubles. - 0.2%;
• 50-300 million rubles. — 0.3%;
• over 300 million rubles. — 2%.

The amount of payments is calculated by tax authorities every year, after receipt and processing of information from Rosreestr.

Calculation of the amount

Starting from 2020, the calculation is carried out according to a new scheme, when the cadastral value is taken as the maximum figure with a coefficient of 0.7. The reduction value is 0.4. To make calculations, you will need to multiply the tax amount by the cost of housing and subtract the coefficient.

Example

The apartment was bought for 8.4 million rubles. The sale price was 10.6 million. The calculation with compensation for purchase costs will be as follows: (8.4 - 1) x 13% = 962,000 rubles. (10.6 - 8.4) x 13% = 286,000 rubles.

The apartment was purchased in 2020 for 5.8 million rubles. In 2020 it was sold for 7.3 million rubles. After the cadastral assessment, the cost became 8.9 million rubles. We multiply the cadastral value by 0.7. We receive 6.2 million rubles, which is less than the contract price. We calculate personal income tax based on the contract price: (7.3 - 5.8) x 13% = 195,000 rubles.

Where can I find out the rate?

Since the total amount of tax is determined by the region, you can familiarize yourself with the regulations of the authorities in periodicals, on the organization’s website or during a personal visit.

The second point is the cadastral value, which will be calculated on the Rosreestr resource:

1. Go to the “Individuals” section;
2. Select the tab on obtaining cadastral valuation information;
3. Click “Find out more”, enter the registration number and address of the object.

Advice! You can make an appointment with a civil servant - he will need to present a declaration and other documents upon request.

List of documents

To receive a property deduction or pay a duty on a privatization transaction, you will need the following documents:

Documents required for privatization

The list of procedures is established by the executive authority. You can highlight the main documents that need to be obtained and provided.

• Written consent of persons living in the house

If one of the residents refuses, it must be in writing and certified by a notary office.

• Permission for minors to participate

It must be received from the guardianship authorities six months before registering the property. Children over the age of 14 must also sign written consent.

If permission is not obtained from the guardianship authorities, you may be refused to register the rights to own the property.

• Identification cards for each resident

Based on the age of the persons, it is necessary to provide passports or birth certificates.

• Social tenancy agreement

You must provide the original document or a replacement order that matches the established template.

• Extract of personal account for housing and communal services

It will be needed to confirm the absence of debt on utility payments.

• Extract from the house register

You can get it at the passport office.

• Certificate from Rosreestr

Confirms the fact that participants are using the right to receive property for the first time.

• Technical passport of an apartment or house

Issued in BTI. If you arranged redevelopment, then the certificate must be issued again.

• Certificate from the Unified State Register

Necessary to confirm that housing is being privatized for the first time.

• Application for privatization

It is necessary to obtain a special form from the authorities that control the execution of the privatization procedure.

The list of submitted documents may vary, depending on possible innovations in legislation, the region and the specific body that controls the registration process.

Registration costs

Despite the fact that according to the law, privatization is free, you will still need money to complete it.

• The state duty of Rosreestr is 500 rubles.
• Technical passport of housing – 1,000 rubles.
• Certificate of first participation in privatization – 100 rubles.
• Document from the Unified State Register – 500 rubles.

We have provided approximate costs; their amount may vary depending on the region of residence.

Paid or free privatization

Privatization can be paid or free. But the fee does not apply to housing. Paid privatization is actually the purchase of real estate from the state with all the ensuing consequences and actions. As a rule, only land and non-residential real estate can be privatized for a fee.

Free privatization of apartments has currently been declared indefinite, and if nothing changes, it will remain so for an unlimited period. It should be taken into account that free privatization is available only once in a lifetime for every citizen of the Russian Federation.

There is an exception to the last rule: minors can participate in privatization twice. The first time before reaching adulthood and the second time after that moment.

The nuances of using a non-privatized apartment

Despite the fact that Russia switched to a market economic model more than 25 years ago (which resulted in the legalization of private property), there is still a lot of state-owned housing in the country. And, of course, for people who have a non-privatized apartment, questions related to the peculiarities of living in it remain relevant to this day.

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A non-privatized apartment cannot be inherited. When all persons registered in a given residential area die, the right of use will again go to the state. However, there is a small clause in the law regarding the inheritance of non-privatized property. If the tenant has collected the necessary package of documents and submitted it for consideration to the relevant authority or ministry in order to transfer the housing into ownership, but his death occurred before the signing of the privatization agreement, then his direct heirs by law have the right to enter into an inheritance and can count on receiving this privatized real estate.

To privatize an apartment or not: legal advice

Statistics show that over 85% of all housing in Russia has already been privatized and is in use. The rest of the apartments are still listed in the state and municipal funds. Probably, some people still doubt the decision to privatize housing.

Useful tips from the site’s lawyers:

1. If the tenant of the property is a single pensioner who has no relatives or does not want to bequeath his property to them, there is no need for privatization. Otherwise, you will have to pay utility bills at a high rate + pay an annual property tax.
2. If a family lives in a dilapidated or dilapidated house, they need to wait for the administration’s decision to resettle the residents. Most likely you will be provided with a new, more comfortable living space. So it can be privatized - the basis will be the same social tenancy agreement.
3. If you want to privatize a service apartment, you will have to transfer the housing to the balance of the municipality. Of course, this requires obtaining the consent of the department or organization. If they allow such a transfer, the housing will go to the municipality, and you will be able to register it in the usual way.
4. If you live in a municipal apartment, but want to improve your living conditions, you can privatize the living space for the purpose of selling it. Or try to sell non-privatized housing (see “Sale of non-privatized apartment”).

Let's summarize:

• Privatized housing is apartments taken out of the municipal fund in favor of citizens.
• Non-privatized housing is on the balance of the state, and people use housing without ownership rights.
• The main advantage of privatized housing is that it belongs to the person. Such an apartment can be easily sold, donated, bequeathed... But there are also disadvantages - the costs fall on the shoulders of the owner.
• The advantage of a municipal apartment is the absence of large expenses for major repairs and taxes. Residents only pay utilities.
• If you want to privatize your home, consider the pros and cons.

To privatize an apartment or not: legal advice

According to statistics, more than 80% of the housing stock in the Russian Federation is privately owned. The remaining apartments are still on the balance sheet of municipalities. Apparently because employers do not consider free privatization an economically beneficial procedure.

Is there any point in privatization and when is it better to leave everything as it is:

1. If the tenant of the property is a single citizen of retirement age who has neither children nor grandchildren, there is no need to transfer the property into ownership. Since there are no close relatives, there is no one to leave an inheritance to. Privatization will only lead to an increase in monthly rent payments. Plus, there will be an annual obligation to pay property tax.
2. If the apartment is located in a dilapidated or dilapidated building, it is better to wait for a resolution on resettlement from the local administration and privatize new comfortable housing.
3. If you, living in a municipal apartment, decide to improve your living conditions, you should first privatize the property. After which you can sell the apartment or exchange it for more spacious housing.

Since 2020, the Government of the Russian Federation has recognized privatization as indefinite, so there is no longer any need to rush into converting housing into private ownership. Soberly assess your financial capabilities and plans for the future. If you are not planning to move in the coming years, continue to live in a council apartment. Provided that you pay your rent regularly and do not cause inconvenience to your neighbors with your behavior, no one will evict you onto the street. And you can re-register your home at any time, for example, when you decide to wait or exchange an apartment.

Deprivatization

Let's find out what deprivatization of an apartment is? Surprisingly, this is the reverse process of privatization .

If the housing was not sold, gifted or inherited, then you can submit an application to the municipal housing management authority. In Moscow, for example, this is the Office of the Housing Department. The application must be accompanied by technical documentation for the property, an extract from the house register (see how to obtain an extract from the house register) and a document confirming that there are no arrears in payment for utilities.

As a result, the apartment will become municipal , and residents will use it under a social tenancy agreement.

In this case, residents will lose the right to free privatization in the future. It is advisable to carry out such manipulations only in one case - if your privatized apartment is located in a building for demolition.

Transferring the housing stock to the residents who occupy it free of charge is a temporary measure. Every year the government sets a date after which it will no longer be possible to rent out housing occupied under a rental agreement for free.

However, every year the terms of free privatization are extended, and tenants of state apartments get another chance to re-register them in their name. You can decide whether you personally should privatize the apartment or not until March 2020.

Next, we suggest watching a video that explains what deprivatization of residential premises is, and also when it is possible.

Ways to optimize tax

The tax for a privatized apartment can be optimized in several ways:

• apply for a property deduction when purchasing a new property - the sole owner;
• sell individual shares (several owners) to reduce the tax base to 1 million rubles;
• take advantage of property deductions when purchasing a home;
• if the deduction took place before 2013, receive it for the balance.

Important! It will not be possible to get a full refund of the tax.

We describe typical ways to resolve legal issues, but each case is unique and requires individual legal assistance.

To quickly resolve your problem, we recommend contacting qualified lawyers on our website.

Statistics of some results of privatization in Russia

In 2001, the final stage of privatization of the coal industry was completed.

By 2006, 119,951 municipal and state-owned enterprises had been privatized. Among them are Rossgosstrakh, partly Sberbank, Rosneft, VTB Bank under the slogan of “people's IPO”. Later, Sberbank was completely reformatted legally into private ownership. Over 50% of the shares belong to the Central Bank of Russia. It is not a government agency. However, in 2020, the state bought out a 51% stake in Sberbank.

By 2009, the public sector remained at 35%. According to the FAS, the remaining 65% of state property passed into private management. However, by 2020 the share of the public sector was 70%. The reverse process of privatization – re-privatization – has been carried out.

In 2020, 133.4 million hectares of land were registered as private land. This is 7.8% of the total land in the Russian fund.

The government has approved an updated program for the privatization of state property for 2020 - 2020. Based on it, revenues to the state amounted to about 5.6 billion Russian rubles. Such profitability in favor of the state, according to calculations, should be maintained annually.