Payment by installments for changing permitted use of land in Moscow possible

Currently, changing the permitted use of privately owned land to another permitted use allowing construction and/or reconstruction of the capital facilities is performed in Moscow on a paid basis according to the general rule.

Resolution No.69-PP of the Moscow Government dated February 24, 2015 amended the previously established procedure for determining the fee for changing the permitted use for land parcels in Moscow for the purposes of improving it. 

According to the new procedure, the landowner can apply for the opportunity to pay in installments for changing the permitted use of such land to a permitted use allowing construction and/or reconstruction of capital facilities.

Payment in installments is provided:

• For 1 year if the amount of payment does not exceed 100 million Rubles;
• For 3 years if the amount of payment is from 100 to 500 million Rubles;
• For 6 years if the amount exceeds 500 million Rubles.

Payments must be made quarterly in equal installments.

Payment in installments for changing the permitted use of the land parcel can be provided for a period not exceeding the timeframes for construction and/or reconstruction of the capital facility.

In the event the landowner falls behind in payments for changing the permitted use of such land parcel in the amount subject to payment for two consecutive payment periods, the resolution on changing the permitted use will be cancelled, and the previous permitted use shall be reestablished.

Additional notes

Should any questions arise in connection with the above or if you need any additional materials, please contact Elena Stepanova or Olga Sofinskaya, Moscow Office of Capital Legal Services.

This Information letter keeps the clients of Capital Legal Services and other interested parties abreast of information that may, to any extent, affect their activity or cater to their particular interests. The opinions and commentaries expressed in this information letter shall not be deemed as legal opinions and do not cancel the need to obtain legal advice or legal opinion on separate issues.