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Published: 11/02/2017
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Each of the described types of land plots has advantages and disadvantages, which manifest themselves to a greater or lesser extent depending on the existing conditions and individual requirements of the land owners.
- Legislation
- Permitted use of land owned by citizens Private plots
- Individual housing construction plots
What is private household plot land?
Plots for private plots are allocated for private subsidiary farming, and their commercial use is not permitted by law.
Thus, the owner of this plot has the right to carry out agricultural activities on it, and use the products for his own needs and the needs of his family, or sell them on the local market.
There are two types of plots for private plots:
- intended for household farming;
- for sowing fields with agricultural crops.
The first type of plots involves the construction of houses intended for a whole family to live in, as well as ancillary buildings (for example, greenhouses, sheds, hotbeds). Practice shows that the majority of such plots are issued in rural areas.
The second type of plots are intended specifically for agricultural activities. Consequently, any construction on such areas is prohibited.
Land use purposes
- personal subsidiary plots;
- organization of production;
- peasant farms;
- construction of a country house, with permission;
- fisheries;
- organization of a research station, etc.
There is no clause here that a house can be built.
However, there are certain cases in which the legislator still allows the construction of a house. At the same time, the future of this issue is not known; it is already being tightened. So, in 2016, legislators made changes to the Land Code, namely, clause 4 was added to Article 78.
The purpose of the change is the legal possibility of confiscating a plot of land that is not used in accordance with its intended purpose - this is agricultural production. Local authorities are already very actively using this provision - to refuse applications regarding the transfer of land to another category, and as a substantiation of their arguments in court.
What is individual housing construction land?
This type of land is allocated to individuals for the construction of a residential building, the height of which will not exceed three floors. Moreover, only one family can live in such a house.
Thus, the construction of multi-storey buildings on these lands for the purpose of renting them out under a rental agreement or for the purpose of sale is prohibited. It is allowed to build utility buildings, for example, sheds, on these areas.
A distinctive feature of this category is the presence of all communications necessary for citizens and developed infrastructure, including schools, kindergartens, hospitals, etc.
Types of permitted use, which is better
This is an important aspect that also needs to be taken into account when purchasing a plot of land. Each purpose of the site corresponds to a specific type:
- IZHS – individual housing construction;
- Private household plot
- SNT - gardening non-profit partnership;
- DNP is a dacha non-profit partnership.
The main differences between individual housing construction and private household plots
The main difference is the intended purpose. Plots for individual housing construction are intended for development, and plots for private household plots are intended for agriculture. At the same time, both construction and sowing are allowed on each site.
However, there are certain differences in this, namely:
- You can only plant part of the plot for individual housing construction without building it. Moreover, if there is no development within 3 years after receiving the site, it may be withdrawn on the basis of improper use. On the site you can exclusively carry out crop production. On plots for private household plots, you have the right to conduct both crop and livestock farming. At the same time, you don’t have to build anything on such a site;
- Differences in price. Plots for private plots are cheaper. This is due to the fact that in the case of plots for individual housing construction, higher costs are incurred to ensure accommodation on it, in particular, costs for the development of infrastructure and communications necessary for life;
- Differences in responsibilities for site development. Plots for individual housing construction are fully developed by the settlement administration, while the responsibility for arranging the plot for private household plots rests entirely with its owner;
- Differences in plot sizes. You can purchase a plot of land for individual housing construction of any size that you can afford. In the case of plots for private household plots, there is a strictly defined plot size, and it is established separately in each subject of the Russian Federation.
Land trusts
Land funds, which include plots for private plots and individual housing construction, are different.
The land fund, which includes plots for private plots, consists of:
- Settlement lands;
- Agricultural land.
On the lands of the first fund, you have the right to erect fundamental residential buildings, as well as carry out agricultural activities that are not commercial. On agricultural land, you can grow crops, raise livestock, and build temporary outbuildings.
If you have erected a permanent building on land that is intended for agriculture, it will be demolished, since such construction is prohibited.
The land fund, which includes plots for individual housing construction, consists only of settlement lands.
Cadastral value
The cadastral value is higher for plots for individual housing construction. This is due to the fact that the cadastral value of a site is an indicator of its condition and quality, and the availability of infrastructure. For example, if the site has the necessary communications, then its cadastral value will be significantly higher.
In addition, the cadastral value depends on the market value of the site. Due to the fact that plots for individual housing construction are more refined, their market value is higher than the market value of plots for private household plots.
Since the amount of the tax depends on the cadastral value of the plot, the tax on a plot of land for individual housing construction will be correspondingly higher than for plots of private household plots.
Another factor that has a significant impact is the need to maintain areas for individual housing construction. Their owners pay higher taxes because they participate in various improvement programs, enjoy free connections to all communications, and use a variety of infrastructure facilities (for example, clinics, schools).
Registration
You have the right to obtain registration on plots for both individual housing construction and private plots. But this only applies to areas located on settlement lands. If the private plot is located on the land of the field fund, then the citizen does not have the right to build a house on it and acquire registration.
Transfer of land from agricultural use to private household plots.
How to transfer private household plots to individual housing construction, read here.
Read about lands for private plots at the link:
Restrictions
In both cases, the main restriction relates to the exclusively non-commercial use of the sites.
There are a number of restrictions for plots for individual housing construction:
- Construction must begin in the first three years;
- The construction period should not exceed 10 years;
- Animal husbandry is prohibited;
- It is prohibited to carry out development without proper permission.
Restrictions provided for plots for private household plots:
- The construction of fundamental facilities on areas intended for field work is prohibited;
- Development is prohibited unless there is appropriate permission from the competent authorities.
Usage
The purposes for using the site vary depending on the categories:
- The intended purpose of land for individual housing construction is the construction of houses intended for permanent residence of one family, as well as the sowing of the area around the house;
- The intended purpose of land for private household plots is to carry out agricultural activities, livestock farming, and there is the possibility of building houses intended for permanent family residence. However, such houses can only be built on settlement lands.
Tax on individual housing construction in 2021: how much you need to pay and other nuances
The tax on individual housing construction is a payment of federal and regional significance. The main law that regulates its payment, of course, is the Tax Code. The tax rate is set by regional authorities. It is determined taking into account the purpose of the land plot.
- In the absence of a benefit Tax amount = 1,200,000 x 0.3% = 3,600 rubles
- With a benefit of 1,000,000 rubles Tax amount = (1,200,000 – 1,000,000) x 0.3% = 600 rubles
- With a discount of 50% of the tax amount Tax amount = 1,200,000 x 0.3% x 50% = 1,800 rubles
- Discount 25% Tax amount = 1,200,000 x 0.3% – 25% = 2,700 rubles
Which is better, private household plots or private housing construction?
To choose the best plot for you, check out the list below of the pros and cons of plots for individual housing construction and plots for private household plots.
Advantages of plots for private plots:
- there is the possibility of using the site not only for building a house, but also for farming;
- there is a simplified procedure for registration at the place of residence;
- Registration of the site for tax purposes is not mandatory;
- there are a number of benefits for owners of these plots;
- the owner acquires the opportunity to open an account with the Pension Fund and deposit his savings there;
- To obtain permission to build a house, you only need to provide documents confirming your right to the site.
It should be noted that it is better to obtain such permission in advance to avoid possible difficulties in the future.
Disadvantages of plots for private plots:
- only areas with a specified area of 0.5 hectares are allocated;
- you will not be able to use this plot as collateral to obtain a bank loan;
- there is no issuance of subsidies for construction;
- it is prohibited to carry out commercial activities;
- after termination of ownership, it is necessary to vacate the site;
- the purpose of using the land is agricultural activity, mining and development is prohibited;
- To receive legal benefits, information about you and your plot must be entered in the business book of the administrative department, which is responsible for land registration. The book should contain your data, information about your site, agricultural vehicles and animals.
Advantages of plots for individual housing construction:
- the owner of the plot acquires the opportunity to use the plot as collateral to obtain a bank loan;
- the sites are equipped with all necessary communications;
- it is possible to use tax deductions for construction costs incurred;
- When the house is put into operation, it will be assigned a postal address, and all family members can register with it.
Disadvantages of plots for individual housing construction:
- certain restrictions on the area of the site;
- To obtain permission to build a residential building, a considerable number of documents must be completed.
If a plot of land is allocated to you for the construction of a residential building, be sure to pay attention to the nearby infrastructure.
In addition, an important factor is the availability of various communications (pipelines, electricity).
The intended purpose of plots for both individual housing construction and private plots generally allows for the construction of residential buildings, however, it should be noted that there are a number of difficulties associated with obtaining permission to build such facilities on plots for private plots.
What is more profitable, private household plots or private housing construction?
If you own a plot of land for individual housing construction, do not forget that if 10 years after receiving it you do not build a house, then your plot will be subject to double land tax.
For persons who own plots for private household plots, the tax is lower, but a number of difficulties arise in obtaining permission to register the entire family. This is due to the fact that this permit can only be obtained upon completion of construction and commissioning of the residential building by the relevant authorities.
If you have built a residential building on a plot classified as agricultural land, it will not be possible to register it; it will be demolished by decision of the local government.
It is worth noting that if you have registered ownership of a plot that belongs to lands that allow individual development, local authorities must provide your plot with the necessary communications. In the case of plots for private household plots, connecting communications to the house is not their responsibility. Consequently, this responsibility rests with the person who owns such a plot. It is he who must provide gas supply, electricity, etc.
However, in practice, in both cases, obtaining permission to conduct communications is not an easy task. The only difference is that the owner of a plot for individual housing construction acquires the right to substantiate his claim with legislative norms.
It should be noted that a person who owns a house built on plots for individual housing construction and private plots has the right not to carry out state registration of such a house, since this is due to its intended purpose. This way you can save money.
A house built on a plot for individual housing construction requires registration of the whole family, while in a house built on a plot for private household plots, this can only be done after it is registered in the Unified State Register of Real Estate.
SNT - gardening non-profit partnerships
SNT lands are intended for gardening and horticulture. The construction of a small house is allowed on them, however, permission will have to be obtained from the SNT department.
It will be impossible to register in such a house. The maintenance of the infrastructure is also carried out at the expense of the members of the cooperative. This is a lighter version of DNP land, intended exclusively for cultivating a garden or vegetable garden, as well as for summer recreation.
Thus, all other things being equal, for the construction or purchase of a private residential house, it is worth giving preference to the lands of individual housing construction or private plots. If there is a lack of funds at the initial stage, you can make a choice in favor of a DNP or SNT plot, but you need to be prepared for insufficient social infrastructure, unstable network operation and high fees for connecting to communications and servicing the cooperative.
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