Russia » Taxes

Capital Gains Tax	Income Tax	VAT	Property Tax

Capital Gains Tax

Capital gains on the disposal of Russian property by both residents and non-residents which then trade in Russia through a permanent establishment are subject to CIT at the standard rate. If Russian property is sold by non-resident companies with no permanent establishment in Russia to an entity which is subject to Russian CIT, withholding tax should apply at either 24% tax on the capital gain or 20% on total proceeds. There is no relief from this tax via double tax treaties. However, protection may be available under certain treaties when shares of a property holding company are sold.

Income Tax

A property owned by a company and generating an income is subject to a tax of 24%. A resident is subject to a 13% income tax based on the amount of income earned in Russia.

VAT

Residential rentals and sales are subject to 18% GST.

Property Tax

Annual property tax is levied at up to 2.2% on the book value of fixed assets. Non-resident companies with no permanent establishment in Russia are only subject to property tax on Russian real estate. Plots of land are exempt from Russian property tax.