Housing issues in Moscow

English > News > August 25, 2007

August 25, 2007

12 billion roubles

The housing policy of the Soviet Union was a major source of annoyances. And, despite the fact that new dwelling accomodation shoot up like mushrooms, it still is a huge and complex issue.

Elsewhere on this website you can read how apartments were denationalized after the collapse of the Soviet Union. What you can read there, only counts for regular residents. The census of 2002 reported more than 10 million regular inhabitants in Moscow, but the number of illegal residents was estimated at 1,5 million, among which 100.000 were Chechens.

In this news item you can see how in a one room apartment in Moscow were identified 5 residents, natives of Tadzhikistan. They were reported by “vigilent citizens”. The lesser of this flat will be subject to a thorough investigation now, especially from the tax authorities. Whoever rents a house has to pay a tax of  12 % of his rental income. But many landlords conceal their income. Merely 4 % of the landlords would observe the rules. With a total of 100 billion roubles of concealed rental income, the treasury missed some 12 billion roubles, which is about 325 million euros.

Click here to read more about the housing policy

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