It is possible for a foreigner to buy an apartment. At present, the cheapest apartment in Moscow costs $1000 per square meter. The average price is about $1500 per square meter. For certain buildings it amounts to $10,000 per square meter.
    The average price of an apartment in St. Petersburg is about one and a half time lower.
    The recent general trend concerning accommodation prices is an annual growth of 15―40%. The experts have estimated that about 30% of accommodation space in Moscow is acquired for investment purposes.

    According to item 3 of art. 62 of the Constitution of the Russian Federation, foreign citizens and stateless persons shall have equal rights and obligations with Russian citizens subject to exceptions stipulated by federal laws and international treaties. This means that foreign citizens are entitled to buy any real and personal property not exempt from civil circulation or the civil circulation of which is not restricted, including buildings and constructions.

    The first thing a foreigner should do about buying real estate is to sign a sales contract on real estate with the owner of this real estate or with its duly authorised representative. Remember that the title to real estate may be also assigned under other contracts, such as exchange or gift contracts. In accordance with the civil law of the Russian Federation, the title and other proprietary rights on real estate, any restrictions to such rights, the origin of such rights, the transfer or the termination thereof has to be officially registered. The title to real estate shall come into effect only when entered into the unified state register.

    At present, there is no differentiated property tax in Russia. Instead, there is a property tax, which is subdivided into a property tax on individuals and a property tax on legal entities, and a land-tax.
    The maximum property tax rate is 2.2% of the taxable amount. Specific property tax rates for enterprises according to the character of activities are stipulated by the legislative authorities of the subdivions of the Russian Federation, so remember that tax rates are directly dependant on the location of the respective property. In Russia, such objects as apartment houses, apartments, cottages, garages as well as other buildings, premises and constructions are considered taxable property. The owners of the property are considered taxpayers with respect to this property. If the property is jointly owned by several indivisuals, each of these persons is considered taxpayer with respect to this property and is due to pay a tax in proportion to his/her share of the property. The property tax for individuals is established by normative acts of local authorities depending on the total inventory amount. The taxes are entered into the local budget of the subdivision of the Russian Federation where the property is located (registered).

    Land also belongs to real estate. You have to pay for using land in Russia. One of the payment forms is the land-tax. Taxpayers with respect to the land-tax are tenants, owners and users of land. If you rent land, you have to pay rent. The amount of the land-tax is established in the form of fixed payments for a land space unit calculated for a year period, regardless of the results of the taxpayer’s economical activity. There is payment for agricultural land and for non-agricultural land. The land-tax on agricultural land depends on the quality and location of the land. The average land-tax on one hectare of agricultural land amounts to RUR500―3690, depending on the subdivision of the Russian Federation. Non-agricultural land is subdivided into land of cities, industrial communities, health resorts, cottage communities, industry, transport, communication, water and forest resources. For each type of non-agricultural land, different tax rates are established. The land-tax is paid upon a notification on tax payment annually submitted by rating authorities on August 1 at the latest.

    If you get property under succession or donation, you have to pay a special tax to own this property. The tax is charged provided that a notary or an officer authorised to execute notarial acts has issued a certificate on succession or certified a donation agreement. The amount of the tax is determined in accordance with the total cost of the property to be owned by the respective individual as of the day of succession or the certification of the appropriate donation agreement. Payment of the tax on property transferred under succession or donation is a mandatory requirement for such property to be assigned to the respective person.
Please remember that the introduction of a real estate tax results in the cancellation of the property tax on legal person and individuals as well as of the land-tax.

    Under the legislation, Russian real estate owned by a foreign citizen does not give this foreign citizen any right to temporary or permanent residence within the territory of the Russian Federation. Moreover, owning real estate is not a reason for getting a short-time visa. However, if a foreign citizen comes to Russia for any other reason, e.g. as a tourist, businessman or employee, he may be registered in his apartment for a period stipulated by law.