Who Is a Tax Non-Resident
A Russian tax resident is a person who has been physically present in Russia for 183 or more days within any 12 consecutive months (Article 207 of the Tax Code). If you live abroad and visit Russia less frequently — you are a non-resident.
Citizenship does not determine tax residency. A Russian citizen may be a tax non-resident, and conversely, a foreign national may be a Russian tax resident.
The Tax Rate for Non-Residents
Non-residents pay personal income tax on proceeds from the sale of Russian real estate at 30%, whereas residents are subject to a progressive scale from 13% to 22% depending on the amount of income.
Non-residents also cannot use:
- the 1,000,000-ruble personal property deduction (for residential property),
- a reduction of the sale proceeds by the original purchase cost.
Important: since 2019, non-residents are entitled to the minimum holding period exemption (3 or 5 years, depending on how the property was acquired). This means that if a non-resident has owned the property for the required period, no NDFL arises at all.
If the minimum holding period has not elapsed: a non-resident selling an apartment for 10 million rubles pays 3 million rubles in tax at 30% — regardless of what the property was originally purchased for (the cost deduction is unavailable).
Double Taxation Agreements
Russia has concluded double taxation treaties (DTTs) with most countries in the world. Many of them — including agreements with Germany, France, Spain, Cyprus, Israel, Armenia, Kazakhstan, and Georgia — contain provisions on the taxation of income from the sale of real estate.
A typical DTT provision: income from the sale of real estate is taxed in the country where the property is located. However, some agreements provide for exemption from Russian tax when certain conditions are met — for example, if the seller is a resident of the treaty partner country.
Importantly: where a DTT applies, a non-resident may claim exemption from Russian tax by presenting confirmation of their tax residency in the partner country. The effective rate may be reduced from 30% to 0%.
The Process
Step 1. Confirm your tax residency in the country of residence. To apply a DTT, you will need a certificate of tax residence (certificate of residence / Ansässigkeitsbescheinigung / etc.) issued by the tax authority of your country of residence.
Step 2. Check whether a DTT exists between Russia and your country, and review its terms. DTT texts are published on the Federal Tax Service website. Pay particular attention to the article on real property.
Step 3. Submit the certificate to the Russian tax authority when filing your personal income tax return (Form 3-NDFL). The return must be filed by 30 April of the year following the year of sale.
Step 4. Pay tax at the DTT rate or claim exemption. The Federal Tax Service is obliged to accept the document, though in practice it may request a notarially certified translation.
Risk: DTT Suspension
Since 2023, Russia has suspended a number of DTTs — in particular with the United States, the United Kingdom, EU countries, and several others. Before completing the transaction, you must verify that the DTT with your country is in force on the date of sale. The list of suspended DTTs is published on the Russian Ministry of Finance website.
Read Also
- Tax on the Sale of a Minor’s Property: Who Pays and How to Reduce the Liability
- Self-Employed Status and the Property Tax Deduction: How to Claim 650,000 Rubles
Living abroad and planning to sell Russian property? Contact us for a tax consultation — we will check whether the DTT applies, calculate the tax liability, and prepare your return.