The cadastral value of residential real estate will increase by 21% from 2024
In the capital, the state revaluation of the cadastral value of housing has ended, which on average increased by 21%. As a result, owners may receive an increase in their property taxes. The paradox is that, perhaps for the first time, the cadastral value of a number of apartments exceeded the market value, including due to the almost doubling of the cost per square meter in two years. But not only for this reason.
Experts said how the updated amount will affect property owners.
“As practice shows, the cadastral value of expensive properties has begun to exceed the market value,” says Andrey Serdyuk, a real estate expert at the federal company “Etazhi” in Moscow. — For example, an apartment in the Moscow region with a market value of 52 million rubles had a cadastral value of 56 million rubles.
At the previous tax rate, the owner had to pay 168 thousand rubles. Now let’s add 21% to the cadastral value of housing — we get a tax of 203 thousand rubles.
For the most part, apartments in the economy segment have a cadastral value lower than the market value. For example, in Zhulebino, apartments with a market price of 12 million rubles have a cadastral value of seven million. The property tax rate of 0.1%, which applies to this value, is 7 thousand rubles. If the cadastral value increases by 21%, the tax will amount to almost 8.5 thousand rubles.
It’s too early, of course, to grab your head — these are just basic calculations. There are also deductions, for example, for an apartment: this is 20 square meters, which are automatically deducted from the area of the property. There are deductions for large families (5 square meters for each minor child), taking into account how long ownership of the property lasts and the size of the share in the property. In the end, property taxes will be quite reasonable, but still higher than before.
— Cadastral valuation of real estate occurs regularly; before this, it took place in 2021. Now a revaluation is needed, since real estate prices, in particular for new buildings, have increased by 90% over the past 2-3 years,” says Irina Dobrokhotova, managing partner of bnMAP.pro, founder of BEST-Novostroy. — The main consequence for apartment owners is a possible increase in annual real estate tax and tax on the sale of an apartment whose tenure is less than five (in some cases three) years.
Individual income tax increases for those owners who will pay tax according to the method in which 70% of the cadastral value is taken as the taxable base.
There is some good news. Andrei Serdyuk says that changes in the cadastral value of real estate will affect owners no earlier than next year, since when calculating property tax, the cadastral value of the property as of January 1 of the year for which the tax is paid is taken as the basis.
To avoid any surprises, you can find out the current cadastral value by ordering an extract from the Unified State Register of Real Estate or by looking at it on the website. For new real estate properties that were registered this year, the basis for calculating the tax is the cadastral value that was established at the time of sale, indicated in the extract from the Unified State Register of Real Estate, and it is valid until a new revision.
Cadastral and market values of real estate do not always coincide and may differ either up or down. If the cadastral value is too high, you can challenge it in court by attaching an assessment report. When selling a residential property, if the price specified in the contract is lower than the cadastral value, then income tax is calculated from the cadastral value using a coefficient of 0.7.
Metrium Managing Director Ruslan Syrtsov says that the cadastral value housing serves as the basis for calculating property tax. However, the amount charged for all apartments will definitely not increase by 21%, says the specialist:
— Currently there is a rule according to which the amount of property tax for individuals cannot increase by more than 10% of the figure for the past year, regardless of the increase in cadastral value based on the assessment results. However, apartment owners will still have to prepare for increased payments.