Belarus Property Market: Open To Foreign Investors?

Foreigners can buy property in Belarus, but there are some important things to know. Firstly, while foreigners can purchase residential or commercial real estate, they cannot own land—they can only rent it. So, when buying a house, the house becomes the property of the buyer, and the land is leased to them. Secondly, while there are no restrictions on the type of real estate foreigners can buy, they must have a notarized translation of their passport into Russian or Belarusian. Thirdly, if the foreign buyer does not speak Russian or Belarusian, a translator must be present during the transaction. Finally, foreigners do not need to pay tax when buying real estate in Belarus, but they do need to pay income tax when selling it if they have stayed in the country for less than 183 days in the calendar year.

Foreigners can buy residential and commercial property in Belarus

Documents required for buying property in Belarus

To buy property in Belarus, foreigners need to provide:

• A passport with a notarized translation into Russian or Belarusian.
• Documents confirming their legal status in Belarus, such as a temporary stay or residence permit.
• If buying through a company, documents confirming the company's registration will be required.
• A sale-purchase agreement signed by both the seller and buyer.
• Receipt of registration fee payment.

Taxes and other considerations

There is no tax when buying property in Belarus, but when selling, foreign citizens pay income tax at a rate of 13% of the value of the property if they have stayed in Belarus for less than 183 days in a calendar year. Owning residential property in Belarus gives foreigners the opportunity to obtain a temporary residence permit. Permanent residency is granted to foreigners who have invested the equivalent of 150,000 Euros or more.

Real estate market in Belarus

Belarus has a fast-growing real estate market, particularly in the capital, Minsk. Prices for apartments and houses in the centre of Minsk have increased significantly in recent years, but are still reasonably priced compared to other European countries. The real estate market in Belarus is stable and not subject to sharp fluctuations, making it an attractive option for foreign investors.

Foreigners cannot own land in Belarus, except through inheritance

According to Belarusian legislation, foreign citizens cannot own land and only have the right to rent it. This means that if a foreigner buys a house, they will own the building but not the land it stands on. The land will be leased to them, typically for a period of up to 99 years. This restriction does not apply to citizens of the Russian Federation, who have the same rights as native Belarusians to purchase both land and structures.

The procedure for acquiring property by foreigners is similar to that for residents of Belarus. When concluding a transaction, foreigners must have their passports translated and notarized. Additionally, if the foreign buyer does not speak the official languages of Belarus, a professional translator must be present during the transaction.

It is important to note that foreigners who own residential real estate in Belarus are entitled to obtain a temporary residence permit for up to one year, with the possibility of subsequent extensions. This allows them to bring their family members to Belarus and provides an opportunity for permanent residence in the country.

While foreigners cannot directly own land in Belarus, there is an exception through inheritance. According to Article 12 of the Earth Code of the Republic of Belarus, foreign citizens have the right to gain ownership of a land plot through inheritance. This means that if a foreigner inherits a property with land, they can become the legal owner of both the building and the land it stands on.

Foreigners need a residence permit to buy property in Belarus

Foreigners can buy property in Belarus, but there are some important considerations and procedures to follow. While there are no restrictions on the purchase of residential or commercial real estate, foreign citizens cannot own land in Belarus. They can only lease it for up to 99 years. This means that when buying a house, the house becomes the property of the buyer, but the land is leased to them.

To buy property in Belarus, a foreigner must have a valid passport and a notarized translation of their passport into Russian or Belarusian. If the foreigner does not speak Russian or Belarusian, a certified translator should be present during the transaction. The presence of an interpreter is required by law if the foreign citizen cannot read the contract of sale.

The procedure for acquiring property is almost identical to that for residents of Belarus. However, foreigners need a residence permit to buy property in the country. The good news is that owning residential property in Belarus gives foreign buyers the opportunity to obtain a temporary residency permit. Permanent residency is granted to foreigners who have invested the equivalent of 150,000 Euros or more.

In terms of taxes, foreigners buying any property in Belarus must pay an annual real estate tax. There is no tax when buying real estate, but income tax applies when selling. If a foreigner has stayed in Belarus for less than 183 days in a calendar year, they are considered a non-resident and must pay income tax at a rate of 13% of the value of the property. If they have stayed for more than six months, they become a tax resident, and one sale of real estate in five years is not taxed.

Foreigners must pay property tax if they own more than one property

Foreigners are welcome to invest in property in Belarus, whether it's for residential or commercial purposes. The country offers a stable political and economic environment, a thriving real estate market, and a high living standard at relatively low costs.

When it comes to taxation, Belarus has a straightforward system for foreigners owning property. If a foreigner owns more than one property, they must pay property tax once a year. This annual tax obligation is calculated based on the number of properties owned. The tax inspector at the local tax office will assist in determining the amount of tax payable and provide guidance on payment methods.

To comply with the tax requirements, foreigners who own multiple properties in Belarus should visit the tax office in their area of residence. Here, they will receive support in calculating the correct amount of tax liability. Subsequently, they will start receiving property tax invoices annually through the mail.

It is important to note that if a foreigner owns only one property, there is no tax payment required. This exemption from property tax applies specifically to those owning a single property in the country.

In addition to the property tax, there are other taxes to consider when buying and selling real estate in Belarus as a foreigner. For instance, when selling property, foreign citizens are subject to an income tax of 13% on the value of the property if their stay in Belarus is less than 183 days in a calendar year. On the other hand, if they reside in the country for more than six months, they become tax residents and are exempt from this income tax on one sale of real estate every five years.

The process of purchasing property in Belarus as a foreigner is relatively straightforward. A valid passport is the primary requirement, along with a notarized translation of the passport into Russian or Belarusian. It is also advisable to have a professional translator present during the transaction if the foreign buyer is not proficient in the official languages.

While foreigners can freely purchase residential or commercial buildings, there is a restriction on land ownership. Foreign citizens can only lease land in Belarus and are not permitted to own it outright. Therefore, when buying a house, the building becomes the property of the foreigner, while the land is leased to them for a maximum period of 99 years.

Russian citizens can buy land and property in Belarus

Russian citizens are permitted to buy land and property in Belarus. The process of purchasing property in Belarus is straightforward for Russian citizens, who are exempt from certain requirements that apply to other foreign buyers.

Any foreign citizen or stateless person can purchase real estate and land in Belarus. The only requirement is that they have identification documents, such as a passport. If the passport is not in Russian, it must be translated and notarised. However, this does not apply to Russian citizens, as their passports are already in Russian.

When buying a house with a plot of land, foreign citizens can only own the building. The land can only be rented, not owned, unless it is inherited. This restriction does not apply to Russian citizens, who are free to purchase both land and structures, just like native Belarusians.

The procedure for purchasing property in Belarus is almost identical to that for residents. Foreign citizens do not need to obtain a residence permit, but they do need to register their temporary stay in the country. If the foreign buyer does not speak Russian or Belarusian, a translator must be present during the transaction.

There are no restrictions on the type of real estate that can be purchased by foreign citizens. They are allowed to buy manufacturing facilities, for example. The property can be registered in the name of an individual or a Belarusian or foreign company.

There is no tax when buying real estate in Belarus for foreign citizens, regardless of the number of properties acquired. However, when selling the property, foreign citizens who have stayed in Belarus for less than 183 days in a calendar year must pay income tax at a rate of 13% of the property's value.

Frequently asked questions