Everyone knows that income received by citizens in the Russian Federation from the sale of real estate is taxed on personal income – personal income tax.
According to the law, both tax residents of the Russian Federation and individuals who are not tax residents of the Russian Federation are recognized as payers of such tax in our country
The tax rate varies from 13 to 30 percent depending on the status of the taxpayer. Thus, the income of sellers who are tax residents of the Russian Federation is taxed at the rate of 13 percent. The tax rate of 30 percent is established in respect of income received by real estate sellers who are not tax residents of the Russian Federation.
First, let's understand these concepts.
The tax code establishes that" Tax residents " are individuals who are actually in the Russian Federation for at least 183 calendar days within 12 consecutive months. The period of stay of an individual in the Russian Federation shall not be interrupted for the periods of his departure from the territory of the Russian Federation for short-term (less than six months) treatment or training, as well as for the performance of labor or other duties related to the performance of work (provision of services) at offshore hydrocarbon deposits.
If your stay in the Russian Federation is shorter, you are not a tax resident of the Russian Federation
Thus, the concepts of "resident" and "non-resident" have nothing to do with the citizenship of the owner of invisibility.
As we can see, a resident foreigner (a citizen of another state) is a tax resident of the Russian Federation. But our fellow travelers can easily fall under the concept of "non-resident".
Differences in the status of the taxpayer have their own nuances.
Thus, the law provides for cases of exemption from tax on the sale of real estate. The tax legislation establishes that the income of individuals received from the sale of real estate objects, as well as shares in the said property are not subject to taxation (exempt from taxation), provided that such object was owned by the taxpayer within the minimum term of ownership of the real estate object and more. The minimum term of ownership of the property is the period after which you are not obliged to pay personal income tax on its sale. At the moment, this period is 3 years for invisibility acquired before 01.01.2016, or after the specified date, but on certain grounds (inherited, as a gift from close relatives, in the order of privatization, or as a result of the transfer under the contract of life support with a dependent) and 5 years for real estate acquired after 01.01.2016 g.
Until the end of 2018. exemption from personal income tax due to the minimum period of ownership of property applies only to tax residents of the Russian Federation
However, starting from 01.01.2019, restrictions on the tax status of a person with respect to the minimum period of ownership of property are excluded from the Tax code. Now citizens who are not tax residents of the Russian Federation, when selling their property, are equated with tax residents. This means that they have the opportunity to apply the above minimum period of ownership of the property, and if you sell the object without waiting for this period - to reduce its tax burden from 30 to 13 percent.
In other words, changes in the legislation relate only to the abolition of limitations in the possibility of applying the non-resident, the minimum period of possession of the property,but does not change the tax rate when you sell the property before this time.
The rate for non-residents, as before, is 30 percent
In other words, if a citizen who is not a tax resident of the Russian Federation, decided to sell the property, which owned less than three years (or in cases established by law five years), the tax rate for him will remain at 30 percent.
If the property was owned during or more than the minimum period of ownership (5 years), the income of the non-resident owner is completely exempt from tax
Therefore, if you like to travel, or have a foreign property in which you live most of your time, we recommend that you carefully check the number of days spent in the territory of the Russian Federation before the decision to sell the property, because in case of stay less than 183 days (as of December 31 of the current calendar year) in the territory of the Russian Federation the status of a tax resident is lost, and you become a tax non-resident, the tax rate increases and tax deductions also lose.
Head of legal Department. Lawyer