Restriction Of Rights Of Foreign Citizens And Legal Entities

Foreign citizens, stateless persons and foreign legal entities have a right to purchase land in Russia, however, this right comes with several exceptions.

Based on the Civil Code of the Russian Federation, civil legislation governs sales to foreign citizens, stateless persons and foreign legal entities, unless otherwise is prescribed by federal law (Article 2 Item 1 paragraph 4). Furthermore, in accordance with Article 36 (part 3) of the Russian Constitution, which prescribes that conditions and procedures for use of land are determined by federal law.

The Land Code establishes the right of foreign citizens, stateless persons and foreign entities to purchase land in Russia. At present, Russian state policy has been changed to extend foreigners’ rights to own land. According to an earlier regulation, the persons listed above could only lease land property.

The legislations of several constituent entities of the Russian Federation were based on that same regulation. At the same time it was noted that reinforcement of these regulations on the level of regional legislation contradicts Article 62 of the Russian Constitution. According to this Article, foreign citizens and stateless persons in the Russian Federation have the same rights and carry the same responsibilities as citizens of the Russian Federation, with the exception of cases established by federal law or an international agreement of the Russian Federation. In other words, foreigners’ rights, including in purchasing land, may not be restricted by any legislative act below federal law.