The standard personal income tax (NDFL) rate for Russian non-residents selling property is 30%. This is one of the highest tax burdens in the civil property market. However, for a number of countries Russia has signed double taxation agreements (DTAs), which allow a significantly lower rate — or sometimes none at all. We analyse a concrete case.

The Situation

Client: a Russian citizen, tax resident of Turkey (spends fewer than 183 days per year in Russia). Ownership: commercial real estate in Moscow, market value approximately 15 million roubles.

Without optimisation: NDFL at 30% × 15,000,000 = 4,500,000 roubles — with no right to the property tax deduction (non-residents are excluded from this deduction under Article 220 of the Tax Code).

What a DTA Is

A DTA — Соглашение об избежании двойного налогообложения (СИДН), or Double Taxation Agreement — is a treaty between Russia and a foreign state whose purpose is to prevent the same income from being taxed twice: once in Russia and once in the state of residence.

As of 2026, Russia has active DTAs with more than 80 countries, including Turkey, the UAE, Armenia, Belarus, Cyprus, and Germany.

Key principle: a DTA takes precedence over domestic Russian tax law (Article 7 of the Tax Code).

How the Russia-Turkey DTA Addresses the Problem

The Russia-Turkey Double Taxation Agreement provides that income from the sale of real estate is taxable in the state where the property is located — which, at first glance, means Russia.

The critical question, however, is at what rate. DTAs do not specify tax rates: those are set by each country’s domestic law. But they can provide that tax is levied in only one country — either Russia or Turkey.

If, under the terms of the specific DTA, Turkey is entitled to tax that income and does so, Russia applies a mechanism of tax credit or exemption to avoid double taxation.

Practical result: with proper application of the DTA and payment of tax on the sale in Turkey, the obligation to the Russian tax authority may either be credited against the Turkish tax paid or reduced to zero — depending on the specific DTA provisions and the circumstances.

Documents Required to Apply the DTA

To claim DTA treatment when filing a 3-NDFL declaration in Russia, the non-resident must provide:

Tax residency certificate — an official document from the Turkish (or other) tax authority confirming that you are a tax resident of that country for the specific tax year.
Apostille or legalisation — depending on whether the country is a party to the Hague Convention.
Certified Russian translation — notarially certified.
Evidence of tax paid abroad — where the credit mechanism (rather than exemption) applies.

Tax Residency: How to Confirm It

A Russian tax resident is a person who has spent 183 days or more in Russia within any 12 consecutive months (Article 207 of the Tax Code). Status is determined as of 31 December of the year of sale.

A Turkish tax resident is a person recognised as such under Turkish law — generally determined by permanent place of residence and the centre of vital interests.

Important: Russian citizenship does not in itself make you a Russian tax resident. Conversely, a foreign passport does not mean you have become a non-resident. The decisive criterion is actual physical presence.

What Does Not Work: Common Mistakes

Mistake 1: “I live abroad — I do not need to pay tax in Russia” This is wrong. The property is located in Russia — Russia has the right to tax income from its sale. The DTA determines how, not whether tax applies at all.

Mistake 2: “The DTA operates automatically” No. The non-resident must personally file a 3-NDFL declaration, attach the residency certificate, and claim the application of the DTA. The mere fact of living abroad is not checked by the tax authority automatically.

Mistake 3: “The ownership period exemption still applies to me” Since 2019, non-residents may also claim exemption from NDFL for residential property held for more than the minimum period (3 or 5 years). However, commercial property (offices, warehouses, apartamenty) does not benefit from this exemption.

Step-by-Step Guide for a Non-Resident Selling Russian Property

Determine your status: resident or non-resident as of 31 December of the year of sale.
Check whether there is a DTA between Russia and your country.
Obtain a tax residency certificate from the tax authority in your country.
Consult a lawyer or tax adviser on the specific provisions of the applicable DTA.
Prepare and file a 3-NDFL declaration by 30 April of the year following the year of sale.
Pay any remaining tax (if it has not been reduced to zero) by 15 July.

Read Also

Selling property as a non-resident is an area where acting without professional advice typically leads either to overpaying tax or to compliance failures. Consult a specialist before signing the sale agreement.

Selling Russian Property as a Non-Resident