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# Inheritance Tax
"Inheritance tax" is actually a bit of a misnomer, because inheritance itself isn't taxed. But once you decide to do something with that property later on - that's when the state takes an interest. The key thing here is the three-year rule. If you inherited an apartment or land and sold it more than three years after the testator's death, you don't have to pay any taxes at all. If you sell it sooner - you pay personal income tax (usually 13%), but not on the entire sale amount, only on the difference between what you sold it for and its cadastral value.
Here's what a lot of people miss: cadastral value is often way lower than the actual market price of an apartment. So the tax ends up not being nearly as scary as it seems at first glance. If the property appreciates, the difference gets bigger, but it's still better than paying a percentage of the full sale price.
Practical tip - if you're not in a hurry, just wait out those three years. If you need to sell urgently, you can try to negotiate a lower price in the contract (to reduce your tax base), but that's more of a gray area and can raise red flags with the tax authorities if the gap from market price looks totally unrealistic.
Russia doesn't have an inheritance tax as such - the state doesn't take a fee on the value of property you receive. But there's a personal income tax that applies in some cases: for example, if you inherited an apartment and sold it before three years of ownership, you'll have to pay 13% of its value. There are exceptions for close relatives - spouses, children, parents - they can sell inherited property without paying tax. It's better to clarify the details at your local tax office for your specific situation, because there are a lot of nuances depending on the type of property and the degree of relationship.
If you inherit an apartment or a plot of land and then sell it before three years have passed, you'll have to pay income tax on the difference between the sale price and the cadastral value of the property. To avoid the tax, just hold the real estate longer than that period before selling it. This works for most cases - the main thing is not to rush into selling if you don't urgently need the money right now.
I'll add some practical details: there's no direct inheritance tax, but it's important to remember the three-year rule - it's not just a recommendation, it's the deadline after which you don't need to report the sale at all. The clock starts not from when you get the certificate of inheritance rights, but from the date the estate was opened, so if you spent a long time on paperwork, part of that period may have already passed. And here's another thing - if the property came from close relatives (parents, children, spouse, siblings), you don't pay tax even if you sell it before three years, but if it's from more distant relatives or unrelated people, you'll have to pay. Which heirs are involved in your case makes a significant difference for the tax consequences.
natalya_ivanova asker
Thanks! I'm inheriting from my grandmother - she's my blood relative, so the tax situation when I sell should be fine.
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