Can foreigners own property in Russia? Ownership restrictions, the purchase process, annual property tax, rental income tax and capital gains tax on sale…
Russian law places very few restrictions on foreign individuals owning real estate, and the purchase process for an apartment or house is, in most respects, identical to that for a Russian citizen. The areas that genuinely differ — and matter for planning — are the small set of ownership restrictions, the annual property tax that applies regardless of residency, and the very different capital gains treatment a non-resident faces on sale. This guide covers all four.
Yes. Foreign citizens and stateless persons may own apartments, houses, commercial premises and the land plots beneath residential buildings on the same basis as Russian citizens, under the constitutional principle of equal rights and obligations for foreign nationals (Art. 62(3) of the Constitution). There is no general prohibition, no special licence, and no requirement to set up a Russian legal entity simply to hold a flat or house.
The restrictions that do exist are narrow and specific:
Agricultural land (земли сельскохозяйственного назначения): foreign citizens, stateless persons and foreign legal entities cannot own agricultural land outright — they may only lease it. This does not affect residential or commercial property, only land classified for agricultural use.
Border territories (приграничные территории): foreign individuals and entities cannot own land plots located in border zones designated by presidential decree, nor in certain other specially designated territories.
Strategically significant assets: certain transactions involving property or land of defence or strategic significance may require prior clearance from the Government Commission for Control over Foreign Investment — relevant mainly to large commercial or industrial sites, not residential property.
Outside these categories — which in practice cover agricultural land and a defined list of border areas — a foreign individual can buy a city-centre apartment, a country house, or commercial premises without any nationality-based restriction on the transaction itself.
Beyond the general framework above, individuals who are citizens of jurisdictions classified as "unfriendly" should confirm whether any sanctions-related approval requirements apply to a specific planned transaction, particularly for higher-value or commercial property. These requirements are assessed case by case and have evolved since 2022.
A Russian taxpayer identification number (ИНН) is generally required for the transaction and is straightforward for a foreign individual to obtain. Mortgage financing from Russian banks is available in principle but in practice is significantly more restricted for non-resident foreign borrowers than for Russian citizens or resident foreigners — most foreign buyers without Russian residency status purchase with cash or financing arranged outside Russia.
Once registered as owner, an individual — regardless of citizenship or tax residency — becomes liable for property tax (налог на имущество физических лиц), an annual local tax based on the property's cadastral value.
Rates are set by municipal authorities within ranges fixed by the Tax Code, typically 0.1% of cadastral value for most residential property, rising for higher-value properties and for non-residential premises (commercial space can attract rates up to around 2%).
Cadastral values are reassessed periodically and are generally lower than market value, though the gap has narrowed in recent revaluations.
The tax is assessed annually by the FTS based on the EGRN register and payable by 1 December of the following year — a notice is sent to the owner's registered address or, for those with access, through the taxpayer's personal account on the FTS portal.
Foreign owners without a permanent Russian address should ensure the FTS has a correct contact method, since liability arises automatically from registered ownership regardless of whether a paper notice is received.
If the property is let, rental income is taxable in Russia as Russian-source income regardless of the owner's residency — but the rate and the availability of deductions differ sharply by status:
An alternative some owners consider is registering as an individual entrepreneur on a simplified regime (УСН) to let property — this can reduce the effective rate, but eligibility and the practical implications (registration, accounting, social contributions) need to be weighed against the simplicity of declaring rental income personally via 3-NDFL, and simplified regimes carry their own residency and activity-type conditions that should be checked before relying on them.
This is where resident and non-resident treatment diverges most sharply — and where the rules contain a feature that surprises many foreign owners: a minimum ownership period can exempt the gain entirely, and this exemption is available to non-residents too.
5 years as the general rule for property acquired by purchase;
3 years where the property was received as a gift or inheritance from a close relative, through privatisation, or where it is the seller's only residential property at the time of sale.
The contrast for a non-resident selling before the minimum period is stark: not only does the 30% rate apply (versus 13–22% for a resident), it applies to the entire sale proceeds with no deduction whatsoever for what was originally paid for the property. A non-resident who bought an apartment for RUB 15 million and sells it three years later for RUB 18 million pays 30% of RUB 18 million — RUB 5.4 million — rather than 30% (or, as a resident, 13–15%) of the RUB 3 million gain.
Because the minimum-ownership exemption applies regardless of residency, a foreign individual who has owned a Russian property for more than five years can sell it tax-free even as a non-resident. The residency question becomes critical only for sales within the minimum period — which is precisely when the gap between resident and non-resident treatment is largest.
Before purchasing, confirm the property is not agricultural land or located in a border zone restricted to foreign ownership
Obtain a Russian ИНН early — it is needed for the purchase, for property tax administration, and for any future sale
Budget for annual property tax based on cadastral value, and ensure the FTS has a working contact method
If letting the property, model the resident (13–22% with deductions) versus non-resident (30% flat) rental tax outcomes before setting the rent
Track the exact purchase date — it determines whether the 3-year or 5-year minimum ownership period applies and when the exemption is reached
Practical support for international business in Russia.