On 30 October 2026, the Federal Tax Service published a comprehensive overview of the key legislative changes affecting property taxation effective from 1 January 2026. The changes stem from Federal Law No. 389-FZ dated 29 July 2025, which amended Chapter 32 of the Tax Code. Major updates include the introduction of a progressive rate scale for high-value residential properties (above 300 million rubles cadastral value), a revised formula for calculating the tax base for commercial real estate using a profitability coefficient, and an expanded list of properties exempt from taxation (e.g., certain environmental protection facilities). The FNS also clarified the procedure for applying the “tax on imputed income” for properties used in entrepreneurial activity without proper registration.
Key Takeaways
- Progressive Rates: Properties with cadastral value exceeding 300 million rubles are now subject to a marginal rate of 2% (up from 0.5%-2% sliding scale), significantly increasing liabilities for luxury real estate owners.
- Commercial Property Formula: The tax base for non-residential premises now incorporates a profitability coefficient determined by regional authorities, linking taxation closer to actual income-generating potential.
- Exemption Expansion: New exemptions apply to property used for renewable energy generation, waste recycling, and other socially beneficial activities, provided statutory conditions are met.
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