🇷🇺 Moving to Russia: tax, residency and cost of living

Key facts

Top income tax

22%

Corporate tax

25%

Capital gains

13%

Wealth tax

No

Inheritance tax

No

Cost of living index

40

Safety

6/10

Internet quality

7/10

Visa-free destinations

113

Foreigners can own property

Yes

Residency in

0 months

Citizenship in

0 years

Taxes

Since 1 January 2025 Russia taxes residents progressively from 13% to 22% on their worldwide income (five brackets, Federal law 176-FZ, unchanged in 2026): 13% up to RUB 2.4m (± € 25,600), rising to 22% above RUB 50m. The 13% flat rate covers most incomes. There is no wealth, inheritance or gift tax, and employees pay no social contributions out of wages. VAT is 20%, corporate tax 25%; crypto is taxed as income (13/15%). Exchange rate EUR/RUB ~93.6 (volatile, range 82-99).

Residency and visas

Since 1 September 2024, Russia offers, through Presidential Decree 702, a simplified temporary residence permit without a quota and without a language, history or law exam for citizens of 47 countries labelled unfriendly (including the Netherlands and the whole EU) who declare they share traditional Russian values. The application runs through the Ministry of Internal Affairs. In practice, however, sanctions make settling hard: opening a Russian bank account and MIR card is possible, but foreign cards do not work and international transfers are limited. Stated factually, not legal advice: consult your own adviser.

Property ownership

Foreigners may acquire property in Russia, with free rental, resale and inheritance; there is no inheritance tax. There are restrictions, however: in border regions and on agricultural land foreigners cannot register ownership, and some strategic zones are excluded. Property tax is low (up to 2.5% cadastral for expensive units). The real bottleneck is not the ownership right but the sanctions: moving capital in and out and paying internationally are difficult because of the banking limits.

Cost of living and quality of life

The cost of living in Russia is far below Western Europe: in Moscow an individual spends roughly € 600 a month excluding rent, and big cities are well provided for. Against that stand the Cyrillic script and limited English outside expat circles, a cold climate and above all the geopolitical isolation: sanctions touch daily life (foreign payment cards do not work, many Western services are gone) and travel to Western Europe runs via a transfer. Described factually, without political judgement.

Passport and mobility

The Russian passport ranks around 44th on the Henley index 2026 with about 113 visa-free destinations, but the EU (Schengen), the US, the UK and Canada still require a visa. On top of that, Western sanctions have suspended direct flights between the EU and Russia, so travel runs via Istanbul or Dubai. Naturalisation takes five years of permanent residence plus the Russian language (three years for native speakers) and is discretionary; for this audience the passport is practically unattractive.

Residency and visas

• Vereenvoudigde tijdelijke verblijfsvergunning (TRP) via Presidentieel Decreet 702 (1-9-2024): zonder quotum en zonder taal-/geschiedenis-/rechtsexamen voor burgers uit 47 als onvriendelijk aangemerkte landen (incl. NL en de hele EU) die verklaren de traditionele Russische waarden te delen. Aanvraag via het ministerie van Binnenlandse Zaken · Residency in 1 years
• Reguliere naturalisatie na 5 jaar permanent verblijf plus Russische taal (3 jaar voor moedertaalsprekers); discretionair en voor deze doelgroep praktisch onaantrekkelijk

Why people move to Russia

• 13% flat rate and no wealth or inheritance tax

  Russia taxes most incomes at a flat 13% (progressive up to 22% above RUB 50m) and has no wealth, inheritance or gift tax; employees also pay no social contributions out of wages. Through a purely fiscal lens, this is one of the lightest regimes in the world.

• No NL tax treaty, sanctions and limited mobility

  The low rate is offset by heavy downsides that honestly belong with it: there is no tax treaty between the Netherlands and Russia (the treaty was denounced and lapsed on 1 January 2022), giving a real double-taxation risk. Residents are taxed on their worldwide income, Western sanctions hit banking, cards, SWIFT, flights and insurance, and the passport is not a realistic goal for this audience. Factual, not legal advice: put your situation to your own tax adviser.