Guide to Property Taxes in Russia
| Tax Rate on Rental Income | |||
| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | 30% | 30% | 30% |
Tax residents of Russia are generally subject to Russian personal income tax on their worldwide income, while nonresidents are generally taxed on Russian-source income, including income derived from Russian real estate.
Rental Income Tax
For an ordinary nonresident individual owning and renting Russian real estate, rental income is generally subject to personal income tax at a flat rate of 30%.
The tax is generally calculated on the rental income without the personal deductions available to Russian tax residents.
Russian tax residents are subject to a different progressive system. From 2025, ordinary rental and other qualifying income is subject to the following marginal rates:
| Annual Income | Rate |
| Up to RUB 2.4 million | 13% |
| RUB 2.4 million to 5 million | 15% |
| RUB 5 million to 20 million | 18% |
| RUB 20 million to 50 million | 20% |
| Above RUB 50 million | 22% |
Capital Gains
Russia does not impose a separate standalone capital-gains tax on individuals. Gains arising from the disposal of Russian real estate are generally dealt with under the personal income-tax system.
For a tax nonresident, taxable income from the sale of Russian real estate is generally subject to a 30% personal income-tax rate.
However, property held for at least the applicable minimum ownership period can qualify for exemption from personal income tax. The general minimum ownership period for real estate is five years, although a three-year period applies in certain specified circumstances, such as some inherited or gifted property.
For Russian tax residents, taxable real-estate disposal income subject to the special capital-income scale is generally taxed at 13% up to RUB 2.4 million and 15% on the portion exceeding RUB 2.4 million.
Corporate Taxation
The standard Russian corporate profit-tax rate increased from 20% to 25% from 1 January 2025.
Accordingly, rental profits and taxable real-estate gains earned by an ordinary Russian company are generally included in taxable corporate profit and subject to the 25% corporate profit-tax rate, unless a special tax regime or rate applies.
Property Buying Costs and Taxes in Russia
| Transaction Costs | ||
| Who Pays? | ||
| Property Transfer Tax | 0.00% | buyer |
| Notary Fee | 0.50% - 1.00% | buyer |
| Legal Fees | 1.00% | buyer |
| Real Estate Agent´s Fee | 2.00% - 5.00% | seller |
| Costs paid by buyer | 1.50% - 2.00% | |
| Costs paid by seller | Unlock | |
| ROUNDTRIP TRANSACTION COSTS | Unlock | |
| Source: Global Property Guide | ||
Property Holding Tax
Individuals owning real estate in Russia are generally subject to an annual property tax on individuals, regardless of whether they are Russian tax residents or nonresidents. The tax applies to residential houses, apartments, rooms, garages, parking spaces and certain other buildings and structures.
The tax is generally calculated using the property's official cadastral value, rather than its purchase price or rental income. The applicable rate is determined by the relevant local municipality within limits established by federal legislation.
For ordinary residential property, including houses, apartments and rooms, the standard rate is generally 0.1% of cadastral value. Local authorities have some discretion to adjust the applicable rate within the limits permitted by the Tax Code.
For qualifying real estate with a cadastral value exceeding RUB 300 million, the maximum property-tax rate is 2.5%.
Other property that does not fall within the preferential residential categories can generally be taxed at rates of up to 0.5% of cadastral value.
