Challenging the cadastral value in Moscow: are there any prospects?

Many colleagues are skeptical about the prospect of contesting the cadastral value of land plots or buildings in Moscow - Moscow real estate is so expensive that the cadastral value rarely exceeds the market value. Nevertheless, it is quite possible to achieve a reduction in individual objects, although one must keep in mind certain specifics of such cases in the capital.

What are the features of challenging the cadastral value in Moscow?

Firstly, in Moscow at the moment there is no commission for the consideration of disputes on the cadastral value (despite the fact that it functions in the Moscow region). This means that all cases on establishing the cadastral value in the amount of the market value are considered only by the Moscow City Court.

Secondly, the judges of the Moscow City Court in the vast majority of cases appoint a forensic appraisal at the expense of the owner of the property. The cost of such an examination is on average 100-150 tr., which must be taken into account when planning the costs of the process.

Thirdly, the reduction in value is usually small - from 10% to 30% of the original cadastral value.

All these features might seem to be sufficient reason not to consider the prospect of contesting the cadastral value at all.

However, we can give a number of arguments in favor of such a decision:

1. You can recalculate property tax or land tax for the past period from the moment when the current cadastral value just started to apply, that is, from 2019.

2. The disputed cadastral value will be valid until the end of 2022 (for land plots) or until the end of 2023 (for buildings, premises and other structures).

Case Study:

The owner of an office building in the Babushkinsky district of Moscow applied to Yurproekt. The cadastral value of the building was 76.5 million rubles. This facility was included in the "List of retail, office facilities, public catering and (or) consumer services ...", and therefore was taxed at higher rates.

Lawyer of the Collegium Daria Tretyakova managed to achieve a reduction in the cadastral value to 62.7 million rubles, thanks to which the savings on personal property tax amounted to:

Thus, even a small reduction in the cadastral value (within 10-15%) can save millions in taxes.

Important

Since 2021, the Moscow “List of retail, office facilities, catering and (or) consumer services…” has once again expanded. Owners of real estate from this list pay tax based on the cadastral value at higher rates, regardless of the applicable taxation system. You can find out if your property is on the List on the official website of the Mayor of Moscow.

You can order a service to challenge the cadastral value of a land plot, building or premises on our thematic website “KuzbassCadastre”.

Any questions?

Until 12/31/2022, we give free oral consultations on all issues described in this publication! Contact via any convenient communication channel:

• phone +7 (3842) 49-08-48
• email info@jurproject.ru

Author

Daria Vladimirovna Tretyakova

Head of representative office in Moscow