Pursuant to the Constitution of the Russian Federation, land and other natural resources can be owned privately. They can also be owned by state or municipal authorities or held under other ownership conditions.

Through legislation adopted at the regional level, the Russian Land Code regulates the purchase of land. In practice, it is still rather difficult to acquire land in Russia from state or municipal authorities. Owners of buildings, however, according to Federal law, have the exclusive right to purchase or rent land plots underlying and surrounding their buildings.

Typically, land is available under lease (sometimes with a right of first refusal to purchase) for a maximum term of 49 years. Renting or acquiring state property (apart from execution of the aforementioned exclusive right) is likely to require winning a tender/auction.

If property is rented or obtained through other means, the transaction can be invalidated. Certain other restrictions also apply to owning land, e.g. foreign individuals or legal entities do not have the right to own land adjacent to a border.

Special laws regulate transactions involving farm land and relevant limitations. According to these laws, foreign individuals, legal entities and stateless persons, as well as Russian legal entities in which more than 50 percent of the share capital is owned by foreign individuals, legal entities or stateless persons can only lease (not own) farm land.

In practice, it is still rather difficult to acquire land in Russia. Both Federal and local regulations should be considered.

«Article reprinted from kpmg.ru, Copyright © 2013 ZAO KPMG, a company incorporated under the Laws of the Russian Federation, a part of the KPMG Europe LLP group, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative („KPMG International“), a Swiss entity. All rights reserved. Reprinted with permission of ZAO KPMG. All Rights Reserved.»

«All information provided is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the facts of a particular situation.»

«For additional news and information, please access KPMG’s Web site on the Internet at http://www.kpmg.ru

 
 

Report inaccuracy