On 9 September 2026, the Moscow FTS Directorate hosted a demonstration of the “Bankrupt Property Showcase” (Vitrina imushchestva bankrotov) for 150 licensed real estate agents and appraisal firms. The platform, launched in beta in January 2026 under Federal Law No. 127-FZ “On Insolvency (Bankruptcy)” Article 110.1, aggregates 12,400+ lots valued at RUB 480 billion as of August 2026, including commercial real estate, land plots, production equipment, and intellectual property rights seized during bankruptcy proceedings. Key features include blockchain-based provenance tracking, integrated encumbrance checks (pledges, arrests, easements) via the Unified State Register of Real Estate (EGRN), and a mandatory 30-day publication period before auction. The FTS aims to reduce average asset realization time from 18 to 9 months and increase creditor recovery rates from 22% to 35%.
Key Takeaways
- Tax Implications for Buyers: Acquirers of bankrupt property assume the seller’s tax basis for depreciation purposes (Article 258 Tax Code), but VAT is levied on the auction price if the seller was a VAT payer; input VAT recovery requires a valid electronic invoice (UPD) issued by the bankruptcy trustee within 5 days of sale.
- Digital Due Diligence: The platform’s API allows real-time verification of tax arrears (Form 10.01), pending audits, and transfer pricing adjustments attached to the asset, reducing post-acquisition tax risk by an estimated 60%.
- Foreign Investor Access: Non-residents may participate via authorized Russian broker-dealers; purchases by entities from “non-cooperative jurisdictions” (Ministry of Finance List, updated quarterly) trigger enhanced beneficial ownership disclosure under Federal Law No. 115-FZ.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement