Russia Proposes Sweeping Tax Reforms for Wealthy Property Owners and Businesses
A new tax proposal could soon reshape how wealthy property owners and businesses are taxed in Russia. The Union of Financiers has put forward a series of changes targeting high-value real estate and regional revenue distribution. If approved, the measures would introduce stricter rules for landlords, commercial property holders, and online traders.
The plan includes lowering the revenue threshold for the automated simplified tax system (AST) from its current level to 20 million rubles. This adjustment would mainly impact owners of luxury and commercial properties. Additionally, a progressive tax coefficient would apply to those whose combined property value exceeds 100 million rubles (around $1.1 million). The higher the total cadastral value, the greater the tax burden.
Another key change involves corporate income tax. Companies would pay based on the revenue generated in each region, rather than a flat rate. Online marketplaces would also face regional taxes linked to sales volumes from local pickup points. The proposal aims to strengthen regional budgets while encouraging legal compliance in the rental market. Landlords declaring income from residential lettings could claim tax deductions. However, critics suggest some property owners may split ownership across multiple names to avoid higher taxes. The idea follows a March suggestion by Svetlana Yenilina, head of St. Petersburg's finance committee. She proposed extra taxes for owners of three or more apartments, though no official support from other regions or ministries has been confirmed.
If implemented, the reforms would push high-value property owners and businesses to adjust their financial strategies. Regional governments could see increased revenue, while landlords might formalise rental income to benefit from deductions. The final impact will depend on how property holders respond to the stricter tax framework.
