can foreigners buy agricultural land in russia



Yes, a foreigner can buy agricultural land, but only in case of opening his own company in Russia. Your company will own and manage 100% of the purchased land. As a private person, a foreigner can’t own land in accordance with the laws of Russian Federation.

According to the legislation of the Russian Federation, namely Article 3 of the Federal Law No. 101-FZ from July 24, 2002 (as amended on July 15, 2016) “On the Turnover of Agricultural Land”, a foreign citizen can buy agricultural land, registering it for the legal entity.


Can a foreigner buy land in Russia?

According to the legislation of the Russian Federation, namely Article 3 of the Federal Law No. 101-FZ from July 24, 2002 (as amended on July 15, 2016) “On the Turnover of Agricultural Land”, a foreign citizen can buy agricultural land, registering it for the legal entity.

How much does it cost to buy agricultural land in Russia?

Yes, a foreigner can buy agricultural land, but only in case of opening his own company in Russia. Your company will own and manage 100% of the purchased land. As a private person, a foreigner can’t own land in accordance with the laws of Russian Federation. In addition, your own company will give you the right to have a residence in Russian Federation, even if you do not have …

How to obtain financing for buying property in Russia?

 · The short answer is: yes. Foreign nationals are allowed to acquire Russian land intended for agriculture, rearing livestock, hunting and other purposes. However, starting an enterprise in the Russian agribusiness industry can be tricky for a foreigner.

How can our Russian law firm help foreign buyers?

 · Foreign citizens do have the right to acquire land for agricultural purposes. However it may be done only under the leasehold right. Foreign companies doing so must be sure to include one Russian partner owning no less than 50% of shares. Purchasing land for Agricultural Exploitation


Can foreigners farm in Russia?

Both foreign citizens as well as stateless persons have the right to open farms in Russia. The procedure for registering a peasant farm is similar to that of registering natural persons as entrepreneurs.

Can a foreigner own land in Russia?

Foreigners in Russia can only acquire ownership of land from the state or the municipality in exchange for a payment, the size of which is to be determined in accordance with the law, Article 39.4 paragraph 4 of the Land Code.

How much does an acre of land cost in Russia?

Price ranges from $2,000 to $5,000 per hectare or from $800 to $2,000 per acre. 3. The most interesting region for investment is the middle zone of Russia (the territory around the Moscow region). The region consists of good fertile land, but this is not black soil.

Does Russia allow land ownership?

Russian legislation permits both Russian and foreign nationals and legal entities to own real estate (apart from land plots) such as buildings, premises (such as parts of buildings), structures and other facilities (including car parking lots).

How can I get free land in Russia?

The Law on the Far Eastern Hectare, or the Federal Law of May 1, 2016, No. 119 FL, is a law by Russian President Vladimir Putin to give 1 hectare (2.5 acres) of free land in the Russian Far East to Russian citizens and foreign nationals as long as they live there for five years.

Who owns the agricultural land in Russia?

In 2020, Miratorg listed as the largest agricultural holding by farmland ownership in Russia. Prodimex ranked second with over 890 thousand hectares in ownership in that year.

Can a non citizen own property in Russia?

Generally, any individual, regardless of his or her citizenship, can acquire residential property in Russia. There is no direct ban on foreigners owning residential property anywhere in the country. However, they are not permitted to own land in state borders or sea port areas, for example.

Is Russia good for farming?

Agricultural lands occupy 13 % of the territory of Russia (25). Wheat, sugar beet, potatoes and cereals (maize, barley, oats and rye) are Russia’s most important crops (20).

Is land in Russia cheap?

But Russian land averages $400 per acre — a mere 10 percent of the cost in France, and 20 percent of the price of land in Brazil.

Can I buy land in Siberia?

The Land Code of the Russian Federation allows foreign citizens, stateless persons, and foreign legal entities to purchase land plots located in Russia.

Can you own a gun in Russia?

As of 2013 Russian citizens over 18 years of age can obtain a firearms license after attending gun-safety classes and passing a federal test and background check. Firearms may be acquired for self-defense, hunting, or sports activities, as well as for collection purposes.

How fertile is Russian land?

Just over 7% of the country’s total land is arable, 60% of which is used for cropland and the remainder for pasture.


How much does land cost in Russia?

About land prices in Russia. On average, good fertile land in Russia costs $ 300-400 per hectare. The most expensive agricultural land costs $ 2000-4000 per hectare. You can buy good agricultural land in Russia at a price of $ 100 per hectare if you buy more than 5000 hectares.

How many hectares of land do you need to open a legal entity?

The maintenance of a company costs money, so it makes sense to open a legal entity only when purchasing at least 1000 hectares of agricultural land in order to recoup the costs of maintaining the company.

Will farming in Russia pay off?

First of all, this concerns foreign farmers who do not know the Russian conditions for running a farming business.

Can you register agricultural land in Russia?

If you have Russian wives or children with Russian citizenship, then you can register agricultural land on them without opening a company. Alternatively, you can register the land for your Russian friends, if you trust them.

Can a foreigner buy land in Russia?

A foreigner as an individual can easily buy land without restrictions for residence and the construction of a private house. As for the category of agricultural land for running a farming business, a foreigner as an individual cannot buy and own in accordance with Russian laws.

Is Russia a good place to farm?

Today land in Russia is the cheapest in the world and at the same time it is also fertile. There are no problems with droughts in Russia. Ideal conditions for running a farming business. Farmland owner taxes are among the lowest in the world. That is why investors come to Russia not only from neighboring countries and the CIS but also from Europe, the United States, China, Korea and Australia.

Do foreigners want to acquire land?

More often than not, foreigners want to acquire land precisely to create a farming business. Our organization exists to solve this problem. Send us a request!

Agribusiness: Can a foreigner buy land in Russia?

The short answer is: yes. Foreign nationals are allowed to acquire Russian land intended for agriculture, rearing livestock, hunting and other purposes.

Current prospects for Russian agribusiness

As much as 10% of the world’s arable land is located in Russia, with crop production being the country’s leading industry. Russia remains the biggest exporter of wheat on the global market, while also producing other grains, legumes, fodder and industrial crops, potatoes, vegetables, etc.

Where can I buy property in Russia?

Getting to know how to buy property in Russia is certainly possible. With a variety of Russian cities to choose from, the most popular being Moscow, Saint Petersburg, Yekaterinburg, Kazan, Niznhy Novgorod, Novosibirsk, Rostov-on-Don, Vladivostok, Volgograd, Omsk and Sochi. Keeping in mind that houses in Russia may differ in looks …

How to buy a house in Russia?

Important steps for foreigners buying real estate in Russia 1 Figuring out which city to live in 2 Going online for house hunting 3 Connecting to a real estate agent in Russia [some of them work for a fee or commission] 4 Registration [propiska] this is a formal declaration of your location of residence, even if you do not own it yet. 5 Signing a sale-purchase agreement. This process includes a de-registration process from the original propiska. 6 Signing of the property sales contract 7 Registration of the new title 8 Payment of Fees, taxes or commission

What is agricultural exploitation?

Agricultural exploitation means that the land being purchased is not used for commercial purposes. In other words, the land is found in an inhabited area, most likely a summer cottage or a village area. Agriculture is used in the form of a small farm or vegetable garden for personal use. Ownership is only under leasehold rights.

How long have Soviet houses been around?

Most of the houses in such conditions have survived up to 5 decades dating back to the years between 1970 and 1980. These types of houses are referenced as the original Soviet-era apartments, with thick double doors, a communal entry hallway between neighbors and the occasional balcony.

How much does it cost to live in Russia?

Cost of living in Russia. On average, a person can live well in Russia on a relatively low budget. Generally a budget between $200 and $250 per month is more than sufficient to cover the costs of groceries. Cost of rent varies by apartment sizes, usually amounts between $300 and $500 for 45 meters squared.

What is agriculture in Russia?

Agriculture is used in the form of a small farm or vegetable garden for personal use. Ownership is only under leasehold rights. This is important in understanding how to buy real estate in Russia in rural areas if a plot of land for personal use is to be included. Purchasing land by Foreigners who own buildings.

Can foreign citizens buy land in Russia?

Foreign citizens and companies are entitled to purchasing land in the Russian Federation, according to the Russian Federation Land Code. Because of its high supply and low demand, prices of land in Russia is comparably cheap to other parts of the world. There are, of course, certain restrictions and conditions to follow:

What is land of agricultural exploitation?

Lands of agricultural exploitation are territorial zones of lands that are in an inhabited area , which are classified as lands of inhabited localities (a different land category from the one mentioned above) and are not covered with the above-mentioned restrictions.

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Can foreigners buy land in Russia?

There are many exceptions to this rule, however, and foreigners should be certain they understand the rules before attempting to purchase land in Russia.

Can foreigners own horticultural land?

Foreign citizens may be members of horticultural, market-gardening, or summer cottage non-commercial associations and possess horticultural, market-gardening, or cottage land plots only under the leasehold rights.

What is the Russian embargo on food?

Since the Russian embargo on European food was enacted in 2014, Russia has been witnessing a surge of growth as new farms work to produce healthy food to meet the demands of cities with over a million residents. This growth is enhanced, not only by the lack of competition from European producers, but also by legislation that creates incentives for farmers, even those who are foreign citizens.

Does Russia have a farm?

Russia attracts foreign farmers with inexpensive land. Justus Walker, an American who moved to Russia more than 10 years ago, today runs and owns a family farm in the Altai region where he breeds goats and makes cheese. “The most important piece of infrastructure for a farmer is the land. Even by South American standards, not to mention global standards, land in Russia costs peanuts,” says the farmer.

Is Russia underdeveloped?

Despite the cheap land, Russia’s infrastructure is underdeveloped, says Korogodina. Another challenge, in her words, is the complete absence of qualified and diligent workers. “There is no commodity market for local produce since buyers still don’t fully understand the difference between locally-produced goods and imports.”

Does Patrick Hoffman have Russian citizenship?

This is what French entrepreneur Patrick Hoffman did. He does not have Russian citizenship , but for the last 10 years he has been developing methods of breeding pigs in Russia and owns the Otrada Farm in …

Can farmers apply for small business benefits?

Additionally, according to Kapianidze, farmers can also apply for most of the benefits designed for small business. For example, small enterprises can use simplified accounting and have the opportunity to purchase state and municipal land that they have been renting. Finally, entrepreneurs who open a business in Russia for …

Do farm start ups get subsidies?

First, beginning in 2017, startup farms have the right to apply for subsidies and, if their application is approved, they will receive state assistance, says David Kapianidze, the Director of Fiscal Services at BMS Law Firm. There is also the “Beginning Farmer” program, which allows qualified parties to receive a grant for developing their own agricultural business.

How to acquire real estate in Russia?

One of the easiest ways of acquiring commercial real estate property in Russia is through mergers and acquisitions, which are regulated by the law with the same name. This procedure implies a foreign company to take over a local business with all its assets, including the real estate ones.

What to do when looking for a property in Russia?

When searching for a property in Russia, foreigners are advised to seek the help of a specialized real estate agency. This minimizes the risks and protects the buyer from fraud. Our attorneys in Russia can recommend real estate agencies in Russia and inform you during the purchase procedure, to make sure that everything is done according to law.

Can a Russian lawyer represent you?

Our Russian lawyers can duly represent you during a real estate purchase process in Russia. Please contact our Russian law firm for a detailed offer and then discuss in detail about purchasing a property in Russia. We remind foreign citizens that it is their duty to register a property with the Land Register once they bought it.

Is it expensive to buy a house in Russia?

Contrary to some beliefs, buying a property in Russia is not expensive. Thanks to the Housing Law which provides for a strict categorization of real estate units, a foreigner can choose the most appropriate type of property they want to buy.

Where do you file documents in Russia?

The documents must be filed with the Land Register in Russia.

Is there a restriction on buying a house in Russia?

There are no restrictions related to buying a residential property in Russia. Moreover, there are several laws which provide for the sale and purchase of real estate property for residential purposes in Russia. These laws are:

Is due diligence required before buying a property in Russia?

Also, it is the future owner’s responsibility to ask for real estate due diligence procedures before buying a property. This can be completed by a law firm in Russia when it comes to the legal side of the transaction and by an architect or any other team of construction experts when it comes to the technical side of the transaction.

Location Restrictions

Lands of Agricultural Destination vs. Lands of Agriculturalexploitation

  • Foreign citizens, as well as Russian legal entities with morethan 50 percent share of foreigners in their charter (joint-stock) capital, may possess land plots of the lands ofagricultural destination only under the leasehold right (Article 3of Federal Law No. 101-FZ dated July 24, 2002). There areessentially two categories of land foreigners should…

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Land Purchase by Foreigners Who Own Buildings

  • Foreign citizens may enjoy a preferential right of buying orleasing a plot of land if they own buildings, houses, or structureslocated on another person’s plot, but the Land Code providessome restrictions. Moreover, the President of the RussianFederation may establish a list of buildings, houses or structuresnot covered by this rule (item 5 Article 35 of the Land Code). The restriction…

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Additional Restrictions For Foreigners Buying Russian Land

  • In addition, according to Article 238 of the Civil Code of theRussian Federation, if a person owns any property that by virtue oflaw may not belong to him/her, this property must be surrendered bythe owner within one year from the moment the title to the propertywas issued. State-owned or municipally owned land plots may betransferred to foreign citizens only for a fee.

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Jus Privatum Can Help Foreign Nationals Purchase Property INRUSSIA

  • If you are looking to purchase property in Russia, working withthe attorneys at Jus Privatum will ensure that you are making alegal purchase and that you will be able to keep the property.Contact our office today to learn more about our services toforeigners doing business in Russia. The content of this article is intended to provide a generalguide to the subject matter. Specialist advi…

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