The key facts
- When a plot is divided into two parts, the ownership period of the new plots is counted from the original land
- The personal income tax exemption applies to individual housing construction, personal subsidiary farming, gardening, vegetable growing, and garages
- The rule is enshrined in paragraph 2 of Article 217.1 of the Tax Code of the Russian Federation and applies to income from 2025
Ownership period is preserved after division
A land plot can be sold without paying personal income tax even if, shortly before the transaction, the owner divided it into two parts. As Life.ru reported Sergey Gavrilov, chairman of the State Duma Committee on Property, Land and Property Relations,, when calculating the minimum ownership period, the years during which the person owned the original land are taken into account. The relevant rule is enshrined in paragraph 2 of Article 217.1 of the Tax Code of the Russian Federation and applies to income received from January 1, 2025 — even if the division itself was formalized earlier.
Conditions of the exemption and a calculation example
The exemption applies under two restrictions: no more than two plots may be formed from one plot, and the land must be designated for individual housing construction, personal subsidiary farming, gardening, vegetable growing, or garages for personal needs. You can sell either one of the new plots or both — the original ownership period is preserved for each. Gavrilov gave an example: a plot for individual housing construction was registered in 2018, in 2026 it was divided into two parts and one is being sold. Although the new property was recently registered in the EGRN, the ownership period is counted from 2018, and since the standard five-year minimum has already expired, no tax will have to be paid on the sale.
What else a seller should know
Usually, the minimum ownership period for real estate to be exempt from personal income tax is five years, but in certain cases it is reduced, and regional authorities may establish even shorter periods for certain properties or categories of owners. Before the transaction, Gavrilov advised checking in the EGRN the land's designated use, the number of plots created after the division, and the date of registration of ownership of the original land. Earlier, the same outlet, in its 'Comments to Life' section, explained a related issue: owners can change the permitted use of a plot without approval from the administration, if the chosen option belongs to the main types of use enshrined in local land use and development rules; in other cases, permission from municipal authorities may be required.
