Expats can generally buy or rent any type of property, however, there are some regulatory restrictions. The first one is established by Provision 15 of the Land Act of Russia. Foreigners, foreign corporations, and apartheids are not permitted to own property on land spots that are situated in bordering regions.
An Indian may purchase a flat, a home, a semi-detached house, or a studio, but they must only file at their location of “residence.” Legally, only Russian nationals are eligible for “permanent” residency. As a result, the validity of foreigners in the Russian region is always doubtful. Nevertheless, a large number of Indians buy Russian real estate each year for their own or their businesses. So any Indian who intends to purchase a plot in Russia would find this guide to be helpful.
Russian real estate laws and regulations
The majority of the time, it is legal for expats to buy or rent land in Russia, however, there are some restrictions. The foreign national must also possess a current Russian residence permit to be permitted to purchase real estate.
According to the Russian Land Act, foreign nationals or international corporate persons are not permitted to own real estate that is situated in a border area. In Russia, there are limitations on the sale of farmland to foreigners.
Procedures for buying a home in Russia
Purchasers must contact the owner and form an initial contract after locating a place that matches their requirements. This paper contains details about the paperwork and a description of all the clauses of the finalized sale-purchase deal.
The purchaser must confirm that they can pay the agreed-upon sale value for the estate in full. The finalized purchasing contract must be signed by both entities in front of a registrar when the deposit has been received and verified. On the same day that the estate is given to the new buyer, an acceptance contract must also be executed. This certificate attests to the fact that the land was transferred in excellent condition.
The new owner must register the property and the former owner must perform a de-register procedure. The following documents need to be provided for the registration of assets in Russia. The sales contract, acceptance agreement, application signed by both entities, Identification documents, and a document stating who will use the house or plot.
Buying residential property
Any individual, whether Indian or international, may purchase a residential area. The only exception applies to purchases made by foreign nationals in port and border regions. An essential point should be kept in mind, though: foreigners are not allowed to purchase the ground on which a building is built, only the building itself.
Buying commercial property
Foreign companies are permitted to purchase real estate in Russia for commercial purposes. There are instances where corporate land acquisitions include farmland; in these instances, the private corporation will only be allowed to use the land piece for the business, which may include carrying out various forms of agricultural activity.
Requirements for purchase as an Indian
Following are the documents required to buy land in Russia as an Indian:
- Indian visa and passport;
- Identification card;
- Residency license;
- Business plan (when purchasing commercial area); and
- Signed contract.
Due diligence
While the due diligence steps are advised when buying residential property, they are obligatory when buying commercial property.
As it requires a thorough investigation of the land to be bought, this phase is often finished before the ownership of the property. Additionally, the prospective owner has to perform real estate proper research measures before making a purchase.
