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City government

Land and Property Policy

01.10.2015, 16:27

Vladimir Yefimov: Cadastral value growth rates are below inflation

Vladimir Yefimov: Cadastral value growth rates are below inflation

According to Vladimir Yefimov, Moscow Government Minister and Head of the Department of Сity Property, the Moscow authorities plan to amend land regulations.

If a land plot accommodates a capital construction facility where less than 20 percent of the area is designated as office or retail space, the type of permitted land use should exclude such a designation. In this case, tenants will see a decrease in lease payments or land tax.

The Moscow Government met with the representatives of 70 Russian regions on 30 September as part of The Effective Regional Tax Policy. The Moscow Experience forum.

Mr Yefimov noted that the activities of a commission under the Federal Service for State Registration, Cadastre, and Cartography (Rosreestr) and judicial practice were analysed during the 2015-2016 cadastral valuation, and taxpayer comments were taken under advisement.

“The thorough appraisal approach led to the cadastral value of real estate increasing by only 2.4 percent and land plots by 5.2 percent with annual inflation amounting to 11.4 percent,” he said.

In case of large shopping and office centres, for which the cadastral value serves as the basis for calculating property tax, the size of the building was included in the appraisal. The new approach resulted in a reduction of the cadastral value of objects in this category by up to 30 percent.