Deputies endorse a 50% reduction on fees for gift deeds between close relatives
The State Duma has reversed recent changes concerning the notarization of property gift deeds between close family members. Since January, the process had become significantly more complex and expensive. Previously, a gift could be registered through an MFC (Multi-functional Center), but the new rules mandated notarization, costing 25-30 thousand rubles. Parliamentarians have now acknowledged these changes, which they themselves passed six months ago, were unfair. However, they stopped short of completely eliminating the paid notarization requirement.
A gift agreement (commonly called a gift deed) to a close relative was traditionally the simplest way to transfer property during one`s lifetime. Until the beginning of this year, it was also the most economical. Gifting an apartment, house, or share to children, parents, grandchildren, grandparents, or siblings (including half-siblings) only required submitting the agreement to an MFC and paying a state registration fee.
Notary involvement was previously only necessary if minors or individuals with limited legal capacity were involved, or if a share of joint property was being gifted.
However, since January 13th, the situation changed drastically, clearly not in favor of citizens. Notarization became a mandatory step for anyone wanting to gift their property to a close relative. This service is far from free; it is expensive.
The calculation for the notary fee involves a federal tariff (0.5% of the property`s cadastral value, between 300 and 20,000 rubles) plus a regional tariff (ranging from 6 to 10 thousand rubles). This averages out to 25-30 thousand rubles just for the notary. On top of this, the state duty for registering the property transfer in Rosreestr (the state property registry) still applies, currently standing at 4000 rubles.
Recognizing that these costs were too burdensome for many citizens, particularly pensioners gifting their apartments and dachas to grandchildren, the State Duma took action. On July 10th, the lower house passed amendments to the Tax Code in both second and third readings, establishing a 50% discount on notary fees for real estate gift agreements between family members or close relatives. This includes spouses, parents and children (including adoptive), grandparents and grandchildren, and siblings (both full-blooded and half-blooded).
While some deputies, specifically communists, proposed completely waiving notary fees for properties valued up to 10 million rubles, this idea did not gain sufficient support. Additionally, the State Duma passed a tax amendment supporting families with children suffering from mental disabilities. This amendment waives the 3000 ruble state duty for court applications to declare children aged 14 to 18 years legally incapacitated.Author: Tatyana Antonova
