Is There an Inheritance Tax in Russia?

Foreign heirs are often surprised to learn that Russia does not impose an inheritance tax. Receiving property by inheritance in Russia generally does not create a personal income tax liability.

However, tax issues may arise later if the inherited property is sold.

Generally, no. Receiving inherited property is not subject to Russian personal income tax.

However, heirs are required to pay notarial fees when obtaining the Certificate of Inheritance. These fees are not taxes and should not be confused with personal income tax.

Tax issues most commonly arise when inherited real estate is sold. Whether Russian personal income tax is payable depends primarily on how long the property has been owned.

Yes. As a general rule, inherited real estate may be sold without Russian personal income tax after three years of ownership.

If the property is sold after this minimum ownership period, the gain is generally exempt from Russian personal income tax.

Under Russian law, ownership of inherited property arises on the date of the deceased person's death, rather than on the date the Certificate of Inheritance is issued or ownership is registered. Therefore, the three-year ownership period is generally calculated from the date of death.

For example, if the deceased died in June 2022 but the Certificate of Inheritance was issued in January 2023, the ownership period is still calculated from June 2022.

Yes. Since amendments to Article 217.1 of the Russian Tax Code entered into force in 2019, the exemption after the minimum ownership period applies both to Russian tax residents and to non-residents.

Simply living abroad does not automatically mean that Russian tax will be payable.

If inherited property is sold before the three-year ownership period expires, Russian personal income tax may become payable. The amount of tax depends on the specific circumstances, including the nature of the transaction and the applicable provisions of Russian tax law.

For foreign heirs, selling inherited property in Russia often raises additional questions, including:

• whether Russian tax is payable;
• whether tax residency affects the calculation;
• whether a double taxation treaty applies;
• whether a Russian tax return must be filed;
• how the sale should be structured.

Each situation should be analysed individually.

I advise foreign citizens and Russian nationals living abroad on inheritance matters involving Russian property.

I can assist with:

• assessing whether Russian personal income tax is payable;
• analysing the tax consequences of selling inherited property;
• reviewing the application of double taxation treaties;
• providing legal support for cross-border inheritance matters involving Russian assets.

You may also find these guides helpful:

• Accepting an Inheritance in Russia
• What If You Missed the Six-Month Deadline to Accept an Inheritance?
• Cross-Border Inheritance: Property, Heirs and Documents in Different Countries.

This material does not constitute legal advice and is published for informational purposes only.