What a foreign national should know about the sale of real estate property in Russia

1. A tax resident is a foreign national who has lived in Russia at least 183 calendar days over a period of 12 consecutive months.
2. The real estate seller’s nationality is not relevant to determine tax resident status.
3. Real estate sellers who are tax residents in Russia at the time of sale can benefit from any the following tax exemptions and deductions:

a. Exemption from tax, if the property was owned for more than five years (three years – for property acquired before 2016);
b. Payment of tax only on the difference between the property sale and purchase price;
c. Tax deductions upon sale of real estate.

4. Real estate sellers who are not tax residents in Russia cannot apply any income tax exemptions and deductions.
5. The applicable tax rate is 30% for non-tax residents and 13% for tax residents.
6. The tax on the income received from real estate sale should be declared till 30th of April and paid till 15th of July of the year following the year of property sale.
7. To avoid double taxation, the real estate seller should find out whether an international agreement for avoidance of double taxation has been signed between the Russian Federation and the country of his/her tax residence.