A “gift of an encumbered apartment” is not a separate Russian contract type. It is a gift of property already affected by a mortgage, lease, easement, prohibition or third-party right. Since 13 January 2025, a gift of Russian real estate between individuals must be notarised, including a gift to a close relative.
Mandatory form
A notary must authenticate a real-estate gift between individuals.
Restrictions
Register entries must be compared with contracts and actual occupation.
Gratuitous transfer
A duty to pay, maintain the donor or transfer property in return changes the legal character.
The 2025 notarial rule
Federal Law No. 459-FZ amended Article 574 of the Civil Code. A gift of real estate between individuals must be notarised. The notary checks identity, intention, authority and the instruments, and sends the registration application.
Effect of an encumbrance
| Situation | Effect |
|---|---|
| Mortgage | Mortgagee consent and the mortgage agreement must be checked; the security does not disappear merely because ownership changes. |
| Lease | A transfer of title does not normally terminate an existing lease by itself. |
| Easement | It continues after transfer within the scope provided by law. |
| Arrest or prohibition | Registration may be impossible or suspended until the obstacle is removed. |
| Occupation rights | Identify the legal basis: residence registration is not itself a proprietary right, but some rights may survive the transfer. |
Can the recipient be required to maintain the donor?
A gift is gratuitous. If the recipient must make monthly payments, care for the donor or transfer property in return, the arrangement may conflict with Article 572 of the Civil Code. A life-maintenance or annuity contract is a different legal structure and should not be disguised as a gift.
Tax and transaction costs
Russian personal-income-tax exemption depends on family or close-relative status under tax law. Notarisation is mandatory regardless of relationship. The notary calculates the current tariff, regional fee and available relief; a specific close-relative relief has applied since 2025.
Frequently asked questions
Can a mortgaged apartment be gifted without the bank?
As a general rule, mortgagee consent is required unless the mortgage agreement permits otherwise. The mortgage is not automatically discharged.
Can an apartment with registered occupants be gifted?
Residence registration and an independent occupation right must be distinguished. Verify the legal basis for every occupant before the gift.
How is a gift different from a life annuity?
A gift is gratuitous. An annuity or life-maintenance agreement requires payments or maintenance and follows a different legal regime.
Official references
- Federal Law No. 459-FZ.
- Federal Law No. 102-FZ on mortgages.
- Federal Notarial Chamber: gifts of real estate.
See the separate guidance on revocation and disputes over apartment gifts.
Need to structure a Russian apartment gift?
We can review encumbrances, occupation rights, tax and the appropriate contract model.
INITIAL CONSULTATIONGeneral information as at 31 August 2026. The conclusion depends on the EGRN record and the particular apartment documents.