The Russians who have bought property abroad with the mortgage, will have to pay income tax

June 20, 2016

The Russians who have bought property abroad with the mortgage, will have to pay income tax

This information appeared on the website of FTS in the beginning of June. Under this rule are affected only tax residents of the Russian Federation —who live in Russia 183 days a year or more.

The current base rate of the Central Bank of Russia — 11%, in the country it’s impossible to take the mortgage at a lower interest rate. In Europe loans are much cheaper. For example, the rate in neighbouring Finland is only 1,83%. On average, mortgage can be taken at 2-4%.

According to the Tax code of the Russian Federation, 9% is the extreme permissible value for foreign currency loans. Accordingly, the difference between the 9% and the rate of a foreign Bank shall be subject to income tax.

Some experts believe that such a policy will lead to that investors will prefer to abandon the status of a tax resident of the Russian Federation. In their opinion, the conditions for mortgage loans in foreign banks are still so attractive to the Russians that the popularity of overseas real estate will not decrease.

Based on the materials realty.rbc.ru

Photocredit Depositphotos.com