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Seaham
04-04-2014, 03:23
This is for my friend, British citizen, tax resident in the UK, who owns a two bed flat in Moscow (for sale), will he pay any tax in Russia? He was told about monstrous 30 per cent, is it true?

penka
04-04-2014, 11:18
This is for my friend, British citizen, tax resident in the UK, who owns a two bed flat in Moscow (for sale), will he pay any tax in Russia? He was told about monstrous 30 per cent, is it true?


One would expect a British citizen to be prepared for the monstrous taxes!:)

30% tax for non-residents.
If a property was in possession for over 3 years, one would normally not pay anything. However, would be better to check if that rule is applicable to the non-RF citizens.

ilya25
23-04-2014, 03:56
This is for my friend, British citizen, tax resident in the UK, who owns a two bed flat in Moscow (for sale), will he pay any tax in Russia? He was told about monstrous 30 per cent, is it true?

In order to enjoy favorable tax treatment of property sales proceeds in Russia, this person needs to come and and spend in Russia 183 days to become a tax resident (for that particular tax year). In this case income from flat sale may not be taxable (if owned more then 3 years) or tax deductions can be applied (if owned less then 3 years)- 1 mln RUR or purchase costs. In this case(once a person is Russian tax resident) tax rate will be 13% . But if a person becomes Russian tax resident his/her world wide income will be taxed in Russia (should be checked if Russian taxes may be applied to the UK tax liabilities).

If a person is a Russian tax non resident (spent in Russia less then 183 days) the sales proceeds should be taxed at 30% rate. Tax is reported and paid on self managed base (but tax authorities with get info about property sale from state registration authority)

I hope this helps