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TAX DEDUCTION FOR HOUSING RENT MAY BE INTRODUCED IN RUSSIA
TAX DEDUCTION FOR HOUSING RENT MAY BE INTRODUCED IN RUSSIA
The Ministry of Construction is preparing a draft government decree designed to promote the development of the rental housing market in Russia. The document contains a number of innovations, including a tax deduction for housing rent and a reduction in state duties for the registration of real estate contracts.
The proposed innovations can change the existing state program for providing housing for Russian citizens. At the moment, the draft resolution is going through the stage of an independent anti-corruption inspection.
Declaring a long-term lease, the Ministry of Construction sees an opportunity to provide housing support instead of providing housing for ownership in it. It is also proposed to provide citizens with housing certificates for long-term rent.
Among the initiatives, the creation of so-called rented houses, the provision of land on preferential terms and tax deduction were also voiced.
According to the data provided by the Ministry of Construction, only about 10% of citizens rent housing in Russia, while in developed countries, this number reaches 40%, and in large world cities - 80%. However, according to the ministry, even this small percentage of the Russian rental market is mostly in the shadow sector, which deprives the budget of a part of its revenues.
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