Who Pays the Tax: Child or Parent?
Under the Tax Code of the Russian Federation, the taxpayer is the owner — in this case, the minor child. However, because a minor does not have full legal capacity, the tax obligation is discharged by their legal representatives — parents, guardians, or adoptive parents (Articles 26, 27 of the Tax Code).
The 3-NDFL return is filed by the parents on the child’s behalf, and they also pay the tax. Penalties for failure to file or failure to pay likewise fall on the parents as legal representatives.
Ownership Period: From Which Date to Calculate
The key question is from which date the ownership period that entitles the owner to an NDFL exemption (3 or 5 years, depending on the basis of acquisition) begins:
- If the child received the share through privatisation — the period runs from the privatisation date.
- If the share was received as a gift or by inheritance from a close relative — the period runs from the date the right arose (date of the gift or opening of the estate), not from when the child turns 18.
- If the share was purchased — from the date of EGRN registration.
A common parental mistake: believing the period restarts when the child reaches adulthood. It does not — the ownership period is not interrupted.
Property Deduction on Sale
If the ownership period does not allow the exemption to apply, the child (through the parents) may use the sale deduction:
- 1,000,000 rubles — for residential property (Article 220(2)(1) of the Tax Code),
- or documented actual acquisition costs — if supported by evidence.
Important: if the apartment was acquired using maternity capital, acquisition costs are confirmed in the amount exceeding the maternity capital only (the capital itself is not the taxpayer’s own expenditure).
Exemption When New Housing Is Purchased
Since 2022, an exemption applies: sale of residential property owned by a minor is not subject to NDFL where:
- it is the only home being sold (or replacement housing was purchased within 90 days before the sale),
- the family is not cycling properties to exploit the exemption (no other real estate holdings).
Also since 2022, minors may claim a deduction equal to the acquisition costs incurred by the parents when the property was originally purchased for the child.
Read Also
- Personal Income Tax on Real Estate Sales: How to Avoid It Legally
- Tax on Selling Russian Property as a Non-Resident: How to Legally Reduce the Rate From 30% to 0%
- Buy, Renovate, Sell: Cutting Tax From 3M to 20,000 Rubles
Selling an apartment in which a minor holds a share? Contact us for a tax consultation — we will calculate the tax and identify the lawful way to reduce it.