Inheritance Taxes in Russia

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  • Topic: Property, Law, Inheritance
  • Pages : 5 (1698 words )
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  • Published : April 19, 2011
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Inheritance tax in Russian Federation.

How high are inheritance taxes in Russia?
From 01 January 2006, inheritance tax was abolished in Russia. However, gifts of real estate properties from individuals other than close relatives are taxed at the standard income tax rate of 13%.

What inheritance laws apply in Russia?
Russian inheritance laws affect everyone who owns property in the Russian Federation. The main laws connected with inheritance are: the Civil Code of the Russian Federation, the Civil Procedure Code of the Russian Federation, and the Fundamental Legislation of the Russian Federation on Notarial System. The Russian Federation is a participant to some international treaties concerning international legal assistance, inter alia: Convention on the service abroad of the judicial and extrajudicial documents in civil or commercial matters (Hague, 15.XI.1965); Convention on the legal assistance and legal relations in civil, family and criminal matters (Kishinev, 07.X.2002); Convention on the legal assistance and legal relations in civil, family and criminal matters (Minsk, 22.I.1993). Russian inheritance laws affect everyone who is domiciled (i.e. has his/her usual place of living, but not necessarily his/her nationality) in the Russian Federation, and also affect everyone, including foreigners, who own property in the Russian Federation. The general principles concerning jurisdiction over property are: * The principle of lex rei sitae. Rights to moveable and immovable property accrue and terminate according to the laws of the country where the property is situated. * Property rights to movables in transit are regulated by the laws of country of departure.

Russian laws (lex rei sitae) govern the inheritance of any property situated or registered in the Russian Federation, including property owned by foreigners who are not domiciled in the Russian Federation. No distinction is made between foreigners with different religions or nationalities in respect of their rights and obligations connected with property and inheritance. Renvoi (the referal of legal issues back to Russian courts from a foreign jurisdiction) is taken into consideration with regard to the legal status of all foreigners including those with rights to property in the Russian Federation. In other cases, if a foreigner’s national inheritance law becomes applicable, then the Russian courts will apply the foreigner’s law, notwithstanding any foreign conflict of law rules. If Russian nationals own immovable property abroad, then as a general rule the Russian authorities apply the foreign inheritance law, following the principle oflex rei sitae. If a Russian national owns movables abroad, then Russian authorities apply the inheritance law of his/her last place of living. Russian courts of general jurisdiction are competent to resolve inheritance cases. Proceedings must be opened in the last place of residence of the deceased, except for cases where it is unknown, or is situated outside the Russian Federation. In such cases the succession must be opened in the place where the immovable property (or its most valuable part) is situated, but if there is no immovable property, in the place where the most valuable movables are situated. Russian courts are competent to resolve disputes regarding foreigners’ property rights. A deceased person’s creditors, who file their claims before the acceptance of inheritance by the heirs, must file them with the court located in the place of opening of the succession. Claims against foreigners can only be resolved by the Russian courts if the deceased had his/her place of living in the Russian Federation and/or if the property in question is situated in the Russian Federation. Russian courts do not necessarily hear the succession proceedings. If there is no dispute, then the local notary public can sanction the acceptance of an inheritance, and can issue certificates for the right of inheritance. Russian notaries...
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