Russia Property Tax Deduction: Get 650k Rubles Back

Note: This content is specific to the Russian tax system.

In Russia, buying a home offers a unique financial benefit: a direct cash refund of the income tax (NDFL) you have paid. The state essentially returns 13% of your purchase costs to you.

This is not just a deduction from taxable income; it is money transferred to your bank account.

The Limits

You can claim deductions on two things:

1. Property Purchase

• Limit: 2,000,000 RUB.
• Refund: 13% of 2M = 260,000 RUB.

2. Mortgage Interest

• Limit: 3,000,000 RUB.
• Refund: 13% of 3M = 390,000 RUB.

Total Max Refund: 650,000 RUB (approx. €6,500) per person.

Double Benefit for Married Couples

If you buy the property while married, the property is considered jointly owned. Both spouses can claim the full deduction limit.

• Total Family Refund: Up to 1,300,000 RUB.
• This applies even if the mortgage is only in one person's name.

How to Claim

You can claim it through the Federal Tax Service (FNS) website (nalog.ru) by submitting a 3-NDFL declaration the year after purchase. Alternatively, you can ask your employer to stop deducting the 13% tax from your salary until the limit is reached.

Conclusion

If you are a tax resident in Russia with an official "white" salary, this deduction effectively lowers the price of your apartment by over half a million rubles. Don't forget to file for it!

👉 Russian Mortgage Tax Calculator