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Taxation and Obligations When Moving from Europe to Russia

Moving to Russia is not just about changing your place of residence but also involves several legal aspects that can impact your budget.

What taxes will you have to pay? How can you avoid double taxation? Let’s break it down.

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Types of taxation in Russia

Property Tax

If you own property in Russia, you will have to pay an annual property tax.

The rate depends on the cadastral value and the region.

For residential properties, it typically ranges from 0.1% to 0.3%, while for commercial real estate, it can go up to 2%.

Tax on Property Sale

Decided to sell your apartment in Russia? If you have owned it for less than 3 years (or 5 years in some cases), you will have to pay an income tax—13% for residents and 30% for non-residents. However, a tax deduction can help reduce the taxable amount.

Rental Income Tax

Renting out property is a great way to earn passive income, but don’t forget about taxes. If you are a tax resident, the rate is 13%, and if not, it’s 30%. You can also register as a self-employed individual and pay only 4-6%.

Double Taxation: How to Avoid It?

Russia has agreements with several countries to prevent double taxation. This means that the tax paid abroad can be credited in Russia. Always check international tax treaties before filing your tax return.

Tax Status: Resident or Non-Resident?

If you spend more than 183 days in Russia per year, you become a tax resident. This grants you lower tax rates but also comes with income declaration obligations.

Get a Consultation

Understanding tax obligations is crucial when moving. Proper planning will help you avoid fines and save on taxes.

For consultation, call or write to us on WhatsApp or Telegram. Experienced specialists of Hello Russland will professionally and delicately help you in solving legal issues.

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