LOGIN or JOIN
information for global expats



Investment Taxation for Expats in Russia

Submitted: January 2014

Taxable income in this category includes:

  • interest from bank and building society deposits
  • interest from government and corporate stocks (bonds)
  • rental income from properties both in Russia and abroad
  • dividends, and
  • capital gains.

Interest

For residents, interest income from Russian sources is treated as ordinary income and taxed at the flat rate of 13%. It must be reported on your tax return. There is a higher 35% rate of tax on interest which is either above or below the Central Bank’s refinancing rate for roubles; or in the case of a foreign currency loan, if the interest rate is above or below 9%. If you are a resident you will also have to pay tax on interest from outside Russia, and may be subject to withholding taxes in the country of origin. If there is a suitable tax treaty, the tax rate can be significantly reduced. For non-residents taxpayers, interest income from Russian sources is treated as ordinary income and taxed as such at a flat rate of 30%.

Rental income

For a resident, rental income is taxed as ordinary income and must be reported with your tax return. Generally rental expenses cannot be deducted. If you are a resident, rental income from a country outside Russia must be reported on your tax return. You may be able to claim a foreign tax credit if this is specified in a tax treaty with the country where the property is located.

For non-residents, rental income that is from a Russian source is taxed as ordinary income at a rate of 30%.

Dividends

For residents, dividend income from Russian sources income is taxed as ordinary income at a rate of 9% and must be reported with your tax return.

For non-resident taxpayers, dividend income from Russian sources income is taxed as ordinary income at a rate of 15%, and must be reported with your tax return.

Capital gains

For residents, capital gains on real property and other assets, which have been held for less than three years, are taxed as ordinary income, and must be reported with your tax return. Capital gains on real property and other taxable assets held for three years or more are exempt from tax.

For non-residents, income tax at a rate of 30% is payable on the gross proceeds of the sale of all assets other than securities. For securities the acquisition cost and various other expenses, plus any taxes paid on purchase can be deducted prior to taxation.

 

Contribute

We value input from our readers. If you spot an error on this page or have any suggestions, please let us know.

 

Moving to Russia

If you are considering moving to Russia or are soon to depart, you can find helpful information and advice in the Expat Briefing dedicated Russian section including; details of immigration and visas, Russian forums, Russian event listings and service providers in Russia.

picture1 Read More

Living in Russia

From your safety to shoppingliving in Russia can yield great benefits as well as occasional drawbacks.  Find your feet and stay abreast of the latest developments affecting expats in Russia with relevant news and up-to-date information.

picture1 Read More

Working in Russia

Working in Russia can be rewarding as well as stressful, if you don't plan ahead and fulfill any legal requirements. Find out about visas and passports, owning and operating a company in Russia, and general Russian culture of the labour market.

picture1 Read More


 
 
 
 

Information

About | Useful Links | Global Media Partners | Media | Advertising And Sales | Banners And Widgets | Glossary | RSS | Privacy & Cookies | Terms And Conditions | Editorial Policy | Refer To A Friend | Newsletters | Contact | Site Map

Important Notice: Wolters Kluwer TAA Limited has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments. © Wolters Kluwer TAA Ltd 2017. All rights reserved.

The Expat Briefing brand is owned and operated by Wolters Kluwer TAA Limited.