Unrestricted purchase of housing in Russia may be prohibited for foreigners

Unrestricted purchase of housing in Russia may be prohibited for foreigners

The Economic Development Ministry is drafting a law that will complicate the procedure of buying or renting of the real estate in Russia by foreign nationals.

According to the ministry's plans the new rules should come into force in the first quarter of 2015, – informs the newspaper “Izvestia”.

The development of the document is seeking to reduce social tension in the areas of greatest concentration of foreign citizens in Russia.

As noted by the ministry, the existing legislation allows unrestricted purchase and lease of real estate by foreign citizens, which often leads to the formation of enclaves and communities that cause some resentment of the locals. New rules will introduce the concept of “separate category”, deals with the representatives of which will be considered under “administrative procedure”. What specific authority will consider such cases and issue permits for the sale is not specified.

The only restriction on the purchase of real estate to foreign citizens in Russia at the moment is a ban on the acquisition of ownership of land, located in the border areas, agricultural land, plots intended to accommodate the transport infrastructure sites within the boundaries of seaports.

Monday, November 25, 2013