Russian Taxes for Individuals

Your Russian tax bill depends first on one question: are you a tax resident of Russia this year? Residents pay personal income tax on worldwide income at progressive rates starting at 13%. Non-residents pay only on Russian-source income, and the general rate for them is 30%. Property you own in Russia is taxed separately, whatever your residency.

This guide by attorney Elena Petrova explains how the system works for people who earn, own or inherit something in Russia while living in California or elsewhere abroad. Rates and thresholds change often, so treat the figures below as a starting map and confirm the current rules before filing.

How Tax Residency Is Counted

Residency is a matter of days, not citizenship or passport. Under the Tax Code, a person who spends at least 183 days in Russia within twelve consecutive months becomes a tax resident.

A Russian citizen who has lived in the United States for years is usually a non-resident for Russian purposes. The Russia-US tax treaty used to help decide conflicts, but Russia suspended key provisions of treaties with a number of countries in 2023. Double taxation now has to be analysed case by case.

Personal Income Tax Rates

Since 2025 residents pay tax on a stepped scale. The base rate is 13%, and higher portions of annual income are taxed at 15%, 18%, 20% and 22%. Dividends, interest and gains from securities fall into a separate base with their own two-step scale.

Non-residents face a flat 30% on most Russian income, such as rent or the sale of property. Dividends from Russian companies are taxed at 15%.

Selling Property: The Holding Period

Profit from selling an apartment, house or land is often the largest tax event for expatriates. A resident is exempt if the property was held for the minimum period. That period is usually five years, and three years applies for inherited property, gifts from close relatives, privatised flats and a sole home.

The taxable gain may be reduced by documented purchase costs or by a fixed property deduction. Keep the original contract and payment records for as long as you own the property.

Annual Taxes on Property You Own

Owners of apartments, houses, garages and parking spaces pay property tax each year. The base is the cadastral value from the state register, and rates are set by local authorities within limits in the Tax Code.

The tax office sends a notice to the owner's personal online account or by post. Payment is due by 1 December of the following year. Owners abroad often miss notices, and penalties then grow quietly each day.

Deductions a Resident Can Claim

Deductions reduce taxable income and are available only to residents paying 13% or more. The property deduction on buying housing covers up to 2 million roubles of the price, plus up to 3 million roubles of mortgage interest. Social deductions cover treatment, education, sports and pension contributions. Standard deductions exist for parents of children.

A deduction can be claimed through the employer during the year or through a return after the year ends.

Filing, Payment and Online Access

Individuals who sold property, received rent or earned foreign income file form 3-NDFL by 30 April of the following year. The tax itself is due by 15 July. Late filing and late payment each carry separate penalties.

Access to the taxpayer's personal account on the tax service website is the easiest way to see notices and pay. It requires a Russian tax number (INN). A representative can file for you under a notarised power of attorney.

When to Get Legal Help

Help is worth seeking before selling Russian property, before moving between countries, and whenever you receive a tax demand. The attorney reviews your residency, calculates exposure, prepares the return and replies to the tax office in writing.

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