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The newly signed laws provide for simplified tax deduction procedures for private individuals buying and selling housing. Under the new laws, the sale of plots of land is a transaction subject to VAT, while the sale of residential property is not subject to VAT. The new laws also exclude property revenues from the profit tax taxation base, introduce a varied scale of land tax rates, provide for income from the sale of state-owned land to go entirely into the municipal budget, lower the tax rate on investors’ income from municipal securities and change the procedure for calculating amortisation for property obtained by organisations-investors from owners through carrying out investment agreements in the housing and utilities sector.

The main aim of creating an affordable housing market is to develop an effective housing sector that functions on market principles and meets the demands of the main part of the population, offering them housing at costs that match their incomes.

In his Address to the Federal Assembly, Mr Putin named ensuring that people had access to affordable housing as one of the country’s priority tasks.