What's new? - Tatarstan has extended the tax relief for new hotels.

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      Tatarstan extends the tax break for new hotels

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      What's new?

      Tatarstan extends the tax break for new hotels (photo: shedevrum.ai)

      The government of Tatarstan has decided to radically extend a strategic tax break to stimulate a tourism boom: it has extended it for new hotels by another four years.

      Tatarstan has extended the duration of the property tax preference for organizations for new hotels with a rating of at least three stars and a capacity of 50 rooms or more. Instead of the original end date of December 31, 2026, the benefit will be in effect until the end of 2030. The relevant document was signed by the head of the republic, Rustam Minnikhanov. The essence of the preference is the establishment of a minimum tax rate of 0.1% on property used to provide temporary accommodation. This condition applies to hotel facilities commissioned from January 1, 2024, and is valid for 10 years from their opening. The main objective of the extension, authorities say, is to reduce hotels' operating costs and consequently lower the cost of rooms, which will increase their affordability for tourists. As Kamil Nugaev, deputy chairman of the State Council of the Republic of Tatarstan committee on budget, taxes and finance, explained, this decision is directly related to the implementation of strategic tasks to develop the region's tourism potential. Creating favorable fiscal conditions is intended to act as a catalyst for attracting long-term investment in the construction and modernization of hotel infrastructure.

      In support of the initiative

      The economic feasibility of the measure is also confirmed by statistics. According to Rosstat data cited by RBC, in the first 10 months of 2025 about 2.4 million people used collective accommodation facilities in Tatarstan, 17% more than in the same period last year. The number of overnight stays exceeded 8.6 million, showing an increase of 19.2%. The sector's financial indicators also demonstrate steady growth: revenues of hotels and similar establishments for the reporting period, net of VAT and excises, amounted to 28.8 billion rubles, an increase of 20.3% year‑on‑year. It was previously reported that the tax reform will affect about 16.1 thousand entrepreneurs in Tatarstan.

      Arina Mikhailova

      Published: 16.12.2025 10:58

      Edited: 16.12.2025 10:58