Moscow industrial complexes and technology parks to receive a land lease rent privilege for 10 years

Moscow industrial complexes and technology parks to receive a land lease rent privilege for 10 years
The enterprises will no longer need to sign supplemental agreements every year.

The Department of Municipal Property of Moscow will provide industrial complexes and technology parks with a land lease rent privilege for 10 years, 0.3 percent of the site's cadastral value for industrial complexes and 0.01 percent for technology and industrial parks. To enjoy the privilege, the enterprises are to confirm their status every year.

Previously, supplemental agreements to land lease agreements establishing or confirming this privilege were signed only for one year. The enterprises had to confirm their status as an industrial complex or an industrial park every year and then apply to the Department of Municipal Property.

“Now supplemental agreements to land lease agreements will be signed for 10 years, so Moscow technology parks and industrial complexes will no longer have to apply for a privilege every year. However, they will need to confirm their status every year with a specially established city commission passing the information on to the Department of Municipal Property. If an enterprise fails to confirm its status, the privilege will be automatically cancelled,” said Deputy Mayor for Economic Policy and Property and Land Relations Vladimir Yefimov.

According to Head of the Department of Municipal Property Maxim Gaman, the Department of Municipal Property has provided privileges to industrial complexes and technology parks under 16 lease agreements for land plots totalling 30.8 hectares since the early 2019, with tenants saving RUB 37.3 million.

For enterprise applying for a supplemental agreement to confirm its land lease rent privilege, the privilege is set for 10 years from the date of assignment of the industrial complex status.