Russian Taxes: FAQ for Foreigners

For Russian personal income tax, what matters is tax residency, not citizenship or passport. A person who spends at least 183 days in Russia within twelve consecutive months is a tax resident and pays the lower rates. Attorney Elena Petrova answers the questions foreigners raise about NDFL, reporting and treaty relief.

Residency Status Under the Tax Code

How is tax residency determined?

By physical presence in Russia: 183 days or more within any twelve consecutive months. Trips abroad for treatment or study shorter than six months do not interrupt the count.

Can status change during the year?

Yes, but the final status for a calendar year is fixed on the basis of days spent in Russia during that year. Tax withheld by an employer may then be recalculated.

Does a residence permit make me a tax resident?

No. A permit is a migration document. Only the days of presence count.

NDFL Rates and Taxable Income

Do residents pay tax on worldwide income?

Yes. A resident declares income from abroad, including foreign salary, interest and rent, and may credit foreign tax paid under a treaty.

Are non-residents taxed on foreign income?

No. Non-residents pay NDFL only on income from Russian sources.

Filing Returns and Deadlines

Who has to file a 3-NDFL return?

Residents with foreign income, people who sold property before the minimum holding period, and anyone whose tax was not withheld. The return is due by 30 April of the following year.

When is the tax itself paid?

By 15 July of the year after the income was received. The tax office sends notices for property tax separately.

Double Tax Treaties

Do treaties still protect US residents?

Russia suspended parts of its tax treaties with a number of states in 2023, including the United States. Whether relief applies depends on the income type and date, so each case needs a check.

What proves residency in another country?

A certificate of tax residency issued by the foreign tax authority, legalised or apostilled and translated into Russian.

Property Owned in Russia

Is selling a Russian flat taxable?

Resident owners are exempt after the minimum holding period, usually five years or three in certain cases. Non-residents pay 30% on the full sale price without property deductions.

Is there an annual property tax?

Yes. Owners of flats, houses and land pay annual tax based on cadastral value, whatever their residency.

Fines, Arrears and Tax Audits

What happens if a return is late?

The Tax Code imposes a fine calculated as a share of the unpaid tax for each month of delay, plus daily penalty interest on the arrears.

Can a foreigner be barred from leaving Russia over tax debts?

Yes. Bailiffs may restrict exit once enforcement proceedings are opened for a sizeable debt.

How the Attorney Handles Tax Matters

Can a tax assessment be challenged?

Yes. A complaint first goes to the higher tax authority, and only after that to court. We prepare both stages and attach an English summary to every document.

Can this be done without coming to Russia?

In most cases, yes. A notarised and apostilled power of attorney lets the attorney file returns, obtain tax office statements and attend hearings.

The main channel of communication with the attorney is email: attorneypetrova1@gmail.com.