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Buying a flat and transferring money
Moderators: nickomsk, TonyH, Chris, Brigitte RR

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Kovno
Posted 2012-04-09 6:17 AM (#50036)
Subject: Buying a flat and transferring money
Member

Posts: 10

I'll try to be brief.

I live in Russia and have a temporary residency visa (three years) I'm in the process of getting a five year visa. And now I want to buy a flat. I've been told by a couple of esate agents that it will be no problem, but I want to confirm what documents I will need.

The other problem is about how to pay for it! I will need to transfer about £60,000 (3million Roubles) from my British bank account to my Russian bank account. Is this straightforward. Will I have to pay tax on it? If so, how?

Any answers appreciated.

Ben
Rasboinik
Posted 2012-04-09 10:29 AM (#50041 - in reply to #50036)
Subject: RE: Buying a flat and transferring money


Expert

Posts: 2149
200010025
Location: When at home either Sakhalin Island or Scotland

I went through the process of buying a flat in Yuzhno-Sakhalin about 3 years ago.

 

The only difference is that I transferred  the money (roughly the same amount) to my then G/F's bank account.

From the UK the transfer was straightforward.

 I went into the bank requested to make the transfer I was presented with a form which I signed. Job done

 

In Russia it became quite complicated.

My girlfriend had to wait three months before she could withdraw the funds otherwise her bank would have charged her 16% commission.

I had to prepare a letter stating that the funds were to buy a flat, so that she did not have to pay tax on the funds and yes the letter that I wrote had to be translated and notarised.

  • "How do we know that this letter is genuine?"
  • "It is genuine because I wrote it."
  • "How do we know that you wrote it."
  •  "You know that I wrote it because I am telling you that I wrote it!"
  • "The letter still must be notarised so that we can confirm that it is genuine."

I am not sure if you will have to go through the same rigmarole after all you are transferring the money to yourself but I would suggest that you check with your bank.

 

A final point.

Make sure that you pay all the charges in the UK. On the form that your UK bank will present to you so that you can fill out the transfer details there should be an option to either

Deduct the charges from the amount sent
Debit you with all charges
Debit you with your UK bank bank charges only.

The cheapest option is to pay all the charges in the UK

You can also have a look at this thread Money for buying property in Russia

 
 
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