Moving to Russia: a guide to buying a property in Russia
How to get residence permit by acquiring property in Russia
What should be done if your goal is moving to Russia? If you are committed to and desirous of living in Russia, and the migration quotas are so scanty (for Moscow, for example, it is only 2000 permits per year) that the probability of success tends to zero?
Well, of course, marry a Russian woman! Or, more rarely, marry a Russian man. Until recently, this was the most reliable way, which practically guaranteed obtaining Russian residence permit - in due time, of course.
What a pity that this way does not suit everyone! :)
But there is good news: In 2020 Russia’s Ministry of Economic Development has made a proposal that will allow foreigners to obtain a residence permit after purchasing real estate. The bill may come into force as early as July 2021.
Acquiring residency when buying property is common practice in many other European countries. For example, in Spain, a purchase of €500,000 ($559,000) enables a family to gain residency.
As yet, it is unknown what the criteria will be for obtaining residency, and the ministry told Izvestia that this would be decided by the federal government. Igor Yushkov, an expert at Moscow’s Finance University (FinU), speculated that the minimum investment would vary by region, with some areas likely being as low as one million rubles ($14,400). (Original source)
Ok, when it comes to speculations about real estate investment rates, I can't resist sharing my own view on the topic.
To my mind, minimum investment in real estate for the foreigners acquiring RF residency will vary from 1,500,000 to 3,000,000 rubles ($21,600 to $43,200) throughout the country. At the same time for major cities like Moscow and St.Petersburg they may set much higher rates, like 5 - 7 million rubles ($72,000 - $100,800). Which is still well below similar rates in other countries ($500,000 in the United States).
Again, these are just my personal assumptions based on the knowledge of real estate prices in Russia. We will know the real rates by July 2021.
The matter is that average real estate prices in Russia are 7-10 times lower compared to European or US prices. I have not considered Moscow, St.Petersburg, Novosibirsk and other major cities of Russia where real estate prices are very close to European ones, may be only 1.5 - 2 times lower.
Step-by-step instruction on property purchase in Russia
So what steps should a foreigner follow if one decide to purchase real estate in Russia?
1. Decide about the region of Russia where you prefer to live and the type of real estate you wish to acquire: a city appartment, a surburban cottage or a country house.
2. Select several options of your dream property online - you can use multiple real estate sites and listings in the Internet or hire a Russian speaking person to do this for you.
3. Apply for Russian visa, 3 months business visa is the best option - you will have enough time for everything. And if you will need more time you can always extend your visa for 3 more months.
4. Come to Russia, see the property options and select the one you like. When you are in Russia on tourist or business visa, it is recommended to open a bank account in one of the major banks (Sberbank is the best option). This account you can use in the future to keep the money for real estate purchase.
5. Sign a preliminary agreement which can be an advance payment (Avans) or property deposit (Zadatok), then pay a deposit to take the property off the market while the required documents are assembled and the close of sale is made. The deposit amount isn’t a set percentage, but usually a round figure agreed by both parties.
6. Sign a sales contract and transfer acceptance act, pay the balance for the property (this is usually done through the safety deposit box in a bank) and register the transfer of ownership in the State Registration Chamber (SRC).
To close a deal at SRC, a foreign citizen will need a standard set of documents:
* Application signed by both parties
* National passport, a copy of it with a notarized translation
* Documents confirming the legality of being in Russia (visa and temporary registration).
* Notarized consent of the spouse of the buyer. If the husband or wife is abroad, it will be necessary to fix the consent of the second party with any notary and put an apostille on this document, as well as translate it into Russian.
* Power of attorney if represented by an agent
* The sales contract and transfer acceptance act
* Payment document confirming payment of state duty
It is the norm in Russia for a buyer to cover all closing expenses, including notary fees, state registration fees and bank expenses.
Need help? We are here for you!
Considering that a foreign citizen usually speaks no Russian and does not know Russian realty laws one may need a reliable bilingual Russian person (a real estate agent) who can do the property search, property and seller background check, review of the ownership documents history and the “rights of use” check, arranging the deal closing, and the supervision of the final property transfer to the new buyer.
And here is how we at Eco-Minded Club can help you:
* We will provide you all information and answer your questions
* We will find a property that meet your needs;
* We will negotiate with the owner on your behalf;
* We will provide full support of the property acquisition;
* We will register the property and give the final documents to you.
Please contact Yury Smirnov at [email protected] , whatsapp: +7 9288849803 , skype: ecomindedclub_1
How much does our service cost?
1. Preliminary consulting service (online) and property search (upto 5 options): 99 USD
2. Preliminary consulting service (online) and property search (upto 10 options): 150 USD
3. Full support of the property acquisition: 2-5 % of the property purchase, depending on the property price.
For more info please read theses articles:
3 Vital Issues of Putin's State of the Nation Address 2020
Moving to Russia: Questions and Answers
Moving to Russia: A guide to buying a property in Russia
Moving to Russia: A guide to buying land in Russia