Owning Russian property as a foreigner is straightforward; the tax on renting it out or selling it is where people overpay. Two numbers decide your bill — the 183-day residency line and the ownership clock.
Your residency (the 183-day test) and how long you've owned the property. Time both well and a sale can be tax-free; time them badly and it's 30% of the whole price.
Check whether your sale is already exempt, and plan the residency position around your completion date — the rate you pay is often a choice, not a fixed outcome.
Can foreigners buy property in Russia?
Taxes at the time of purchase
Tax on rental income from Russian property
Tax on sale: the minimum ownership period rule
Repatriating sale proceeds: currency control
Yes — foreign individuals can legally purchase residential and commercial real estate in Russia. There are no restrictions on foreigners buying apartments, houses or offices in most Russian cities. The main exception is land near state borders and certain strategic areas, where foreign ownership is restricted.
Purchasing real estate in Russia as a foreign individual involves the same legal process as for Russian citizens: a sale and purchase agreement signed before a notary, registration of ownership with Rosreestr (the Federal Property Registry), and payment through a bank account opened in Russia.
The tax implications, however, differ significantly from those for Russian citizens — and are the primary consideration for any foreign buyer.
When purchasing real estate in Russia, a foreign buyer pays:
No purchase tax — Russia does not impose a stamp duty or transfer tax on the buyer of real estate
Notary fees — typically 0.1–0.5% of the transaction value, depending on the property type and transaction structure
Rosreestr registration fee — RUB 2,000 for apartments, higher for other property types
The seller pays any applicable tax on the gain from sale (see below). The buyer has no income tax liability at the point of purchase.
Property tax (nalog na imushchestvo): After purchase, the owner pays annual property tax on the cadastral value of the property. For foreign owners, the rate is the same as for Russian citizens: 0.1–2% of cadastral value depending on the property type and location. For a typical Moscow apartment with cadastral value of RUB 15 million, annual property tax is approximately RUB 15,000–30,000.
Pick your situation — we'll tell you where you stand:
Rental income: 13% resident / 30% non-resident (no deductions). Sale before the holding period: 30% of the full price for a non-resident. After the period: 0% for both.
Rental income from Russian property is taxable in Russia regardless of the owner's tax residency status. Russian source income — which rental income from Russian real estate is — is always subject to Russian taxation.
Rental income from Russian property must be declared in an annual 3-NDFL personal tax return, filed by 30 April of the year following the reporting year. The tax itself is due by 15 July.
Deductions: Tax residents can deduct documented expenses related to the property (repairs, management fees, utilities paid by the owner) against the rental income. Non-residents cannot deduct expenses — they pay 30% on gross rental income.
Individual entrepreneur option: Foreign residents who receive regular rental income often register as individual entrepreneurs (IP) under the simplified tax system (УСН) at 6% on revenue or 15% on profit. This is significantly cheaper than 13–30% NDFL and can be used by both Russian citizens and foreign tax residents. Foreign non-residents cannot use this option.
Since 1 January 2019, the minimum-ownership-period exemption applies to non-residents on the same terms as residents. Hold five years (three in qualifying cases) and the sale is tax-free regardless of residency — the older 'no exemption for non-residents' position is wrong.
When a foreign individual sells Russian real estate, the tax treatment depends on how long they have owned the property and their residency status at the time of sale.
Minimum ownership period exemption: an owner who has held residential property for at least 5 years (3 years if it is their only residential property, or if it was received as a gift from a close relative, by inheritance, or under a life-maintenance agreement) pays zero tax on the sale — the gain is fully exempt.
This applies regardless of tax residency. Since 1 January 2019 the exemption is available to non-residents on the same terms as residents: Federal Law 424-FZ of 27.11.2018 removed the residency condition from Art. 217(17.1) and Art. 217.1(1) of the Tax Code, and the FTS confirmed it applies to property whenever acquired. A foreign individual who has owned a Russian apartment for more than five years can sell it free of Russian tax even while non-resident — and, having no taxable income to report, generally has no 3-NDFL to file either.
Residency matters for sales inside the minimum period. There the difference is stark: a non-resident pays 30% on the full sale proceeds — the gross amount, with no deduction for what was originally paid — while a resident pays 13–22% on the gain after deducting the documented purchase price. On a sale before the period is up, that gap is often worth more than the cost of planning around it: some owners time the sale to a year in which they reach 183-day residency, others simply wait until the ownership period is complete.
Once Russian real estate is sold, repatriating the sale proceeds to a foreign bank account involves Russia's currency control regime. Key rules as of 2026:
Sale proceeds received in rubles must first be deposited in a Russian bank account
Transfer of rubles to a foreign bank account is restricted for residents of "unfriendly" countries (EU, US, UK, Japan, South Korea, Australia and others) — subject to Central Bank authorisation limits
Residents of "friendly" countries (China, India, UAE, Turkey, Kazakhstan and others) face fewer restrictions on outbound transfers
Transfers in foreign currency (USD, EUR) from Russian banks are severely restricted regardless of nationality
Only if they sell before the minimum ownership period. Since 1 January 2019, the holding-period exemption applies to non-residents on the same terms as residents — hold for five years (or three in qualifying cases such as an only home, gift or inheritance) and the sale is tax-free regardless of residency. Sell earlier and a non-resident pays 30% on the full sale price, with no expense deduction.
For a resident, at the progressive scale; for a non-resident, at a flat 30% with no deductions. Registering as a sole-trader IP on a simplified regime can bring the effective rate well below 30% for a non-resident landlord — often worth modelling before you assume the flat rate.
From the date of the deceased's death, not from your later registration of title. That distinction can move the exemption date forward by months, so it's worth confirming before selling an inherited property.
This guide covers the rules. The question that decides your bill is narrower: are you selling on the right side of two lines — the 183-day residency test, and the ownership clock? Time them well and the tax can fall to zero; time them badly and it is 30% of the whole price.
About to sign? The residency and holding-period position is far cheaper to fix before completion than after.
Practical support for international business in Russia.