Tax on selling a flat in Russia as a non-resident

A Russian tax non-resident You can confirm your status with a document through the Russian Federal Tax Service online service: how to get a tax residence certificate. pays 30% when selling a flat in Russia, and not on the profit but on the entire amount received. The RUB 1 million deduction and reducing the income by expenses are not available to non-residents. But the exemption for the minimum holding period (3 or 5 years) applies to them too: if the period has been met, there is no tax at all and no return needs to be filed. The second obligation that stays in Russia after the move is a sole proprietorship (Russian IP): keep it, close it or switch to autónomo.

The second thing Russian sources stay silent about: if you have become a Spanish tax resident, the same income must also be declared here. We look at both sides.

How property itself is taxed in Spain (IBI, the IRNR non-resident income tax and deductions when letting) is covered in a separate article: property taxes in Spain.

This article is for reference only. Part of it concerns Russian tax law, which changes; for personal advice on Russian law, consult a Russian tax professional.

Who becomes a Russian tax non-resident

A Russian tax non-resident is someone who spent fewer than 183 days in the country within 12 consecutive months. The status is determined by the facts: no application is needed, and you cannot opt out of it.

Citizenship plays no role: a Russian citizen who has moved to Spain becomes a Russian non-resident after about six months away. At the same time, they remain a Russian currency-control resident, which is a different status with different obligations, covered in our article on notifying the Federal Tax Service about a foreign account.

What changes when you lose residence

The difference between “the profit” and “the entire amount” is the most expensive one in this table. A resident who bought a flat for 8 million and sold it for 10 million pays tax on 2 million. A non-resident in the same deal pays tax on 10 million.

Minimum holding period: the main way not to pay

The holding period exemption is the only mechanism that works in full for a non-resident. If the period has been met, no tax arises, no return is filed and the 30% rate does not apply.

The period runs from the date the ownership right was registered. For new-build flats bought under a shared construction agreement, there is a special rule: the period runs from full payment, not from signing the handover certificate.

The practical conclusion: if only a few months remain until the period ends, it is cheaper to wait. On a RUB 10 million flat, the difference between “sell now” and “sell in six months” is RUB 3 million.

How the tax is calculated

The base is the price in the contract, but not less than the cadastral value of the property on 1 January of the year of sale multiplied by a reducing coefficient. If the contract price is lower than that figure, the tax is calculated on the figure. There is no point understating the price in the contract.

Example 1: holding period not met

A flat was bought in 2023 for RUB 8 million and sold in 2026 for RUB 10 million. The seller is a Russian non-resident, and it is not their only home.

• Holding period: 3 years out of the required 5, so no exemption.
• Base: RUB 10 million (purchase costs are not deducted).
• Tax: RUB 3,000,000.

For comparison: a resident in the same deal would pay about RUB 274 thousand, on a profit of 2 million at 13% and 15%.

Example 2: holding period met

The same flat, but bought in 2020.

• Holding period: 6 years out of the required 5, so the exemption applies.
• Tax: RUB 0, no return is filed.

The difference between the two scenarios is three million roubles and one year of waiting.

What happens to this income in Spain

This is where we get to what Russian articles on the subject leave out.

If you lived in Spain for more than 183 days in a calendar year, you are a Spanish tax resident and must declare your worldwide income here. The sale of a flat in Russia is part of it.

In Spain capital gains are taxed on a separate scale for savings income, which is gentler than the scale for earned income and starts at 19%. The base is calculated under Spanish rules: the difference between the sale price and the acquisition price, taking related costs into account, i.e. on the profit, not on the entire amount.

The key question is whether the tax paid in Russia can be credited against the Spanish tax. The answer depends on the status of the relevant articles of the double taxation treaty, some of which have been suspended since August 2023. This has to be assessed case by case: there is no universal answer at the moment.

Separately: the sale itself does not create a modelo 720 obligation, but the proceeds held in a foreign account may take you over the €50,000 threshold and create an obligation to file the foreign assets return.

How to plan the sale

Three scenarios, from most to least favourable.

1. Wait until the minimum holding period has passed. The cleanest option: no tax arises in Russia at all. In Spain the income is still declared, but the Spanish base is calculated on the profit, not the full amount.

2. Sell before you become a Spanish tax resident. Spain does not split the year into “before” and “after” the move: you are either resident for the whole calendar year or not. A sale made in a year in which you definitely will not reach 183 days in Spain does not go on the Spanish return.

3. Sell while a non-resident of both countries. Possible in theory, but in practice a rare and risky arrangement that should not be planned without a lawyer.

The worst option is to sell in the very first year after the move without meeting the holding period: 30% in Russia and declaring the income in Spain at the same time.

Deadlines and reporting

• The 3-NDFL return in Russia: by 30 April of the year following the year of sale.
• Payment of the tax: by 15 July.
• The Spanish return: from April to June of the following year, on modelo 100.
• Modelo 720, if foreign assets exceed €50,000 in any block: by 31 March.

If the holding period has been met and there is no tax in Russia, no 3-NDFL return is filed. But the Spanish obligation to declare the income remains.

Five mistakes

• Thinking a non-resident pays nothing at all. On the contrary: the rate is higher and the tools for reducing the base are not available.
• Counting on the RUB 1 million deduction. Non-residents are not entitled to it.
• Understating the price in the contract. The base cannot be lower than the cadastral value multiplied by the coefficient.
• Selling in the first year after the move. The most expensive combination possible.
• Forgetting about the Spanish return. Paying the Russian tax does not discharge the Spanish obligation.

And if you are selling property in Spain

That is a different procedure with different rules. The buyer withholds 3% of the sale price and pays it to Hacienda (the Spanish tax authority), the seller files modelo 210 and declares the gain at 19%, and the municipal plusvalía is paid separately. We cover this in a separate article.

Frequently asked questions

What tax does a non-resident pay when selling a flat in Russia?
30% of the entire amount received, with no deductions and no allowance for purchase costs. If the minimum holding period has been met, there is no tax.

Does the holding period exemption apply to non-residents?
Yes, the three- and five-year rule applies to non-residents in full.

Can the income be reduced by purchase costs?
This is not available to non-residents, and neither is the RUB 1 million property deduction.

When will I become a Russian non-resident?
When you spend fewer than 183 days in Russia within 12 consecutive months. The status applies automatically.

Do I need to declare the sale of a Russian flat in Spain?
If you are a Spanish tax resident, yes: the income is part of your worldwide income and is declared here.

Will the Russian tax be credited against the Spanish tax?
It depends on the status of the relevant articles of the tax treaty, some of which have been suspended since August 2023. An individual assessment is needed.

When is it best to sell?
After the minimum holding period has passed, or in a calendar year in which you definitely do not yet become a Spanish tax resident.

What happens if I do not file the return?
A penalty for failing to file and late-payment interest. The tax authority receives data on the transaction from Rosreestr (the Russian property register) automatically.

Summary

• The rate for a Russian non-resident is 30% of the entire amount received, not of the profit.
• The RUB 1 million deduction and allowance for costs are not available to non-residents.
• The 3- or 5-year holding period exemption works for non-residents too; it is the main way not to pay.
• A Spanish resident also declares this income here, on the savings income scale.
• Whether the Russian tax can be credited depends on the suspended articles of the treaty.
• The worst scenario is selling in the first year after the move without meeting the holding period.

If the sale of Russian property falls in the year of your move, it is worth working out the steps in advance: the date of the sale determines whether the income goes on your Spanish return. We will review your situation: write to us.