Pre-Immigration Planning from Russia: The Legal and Tax Checklist

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Practice Analysis

Byline:
By Kristina Kornouhova

May 2026

INSIGHTS ARTICLES —pre-immigration planning russia

For an individual whose business and personal circumstances have been centred in Russia but who is considering establishing their primary residence elsewhere — whether for lifestyle, family, or commercial reasons — the legal and tax steps that should be taken before departure are material. The Russian tax system creates specific obligations that continue after departure in some circumstances, and the steps taken immediately before and after a change of tax residency can have significant consequences for the individual's ongoing exposure.

Russian Tax Residency: The Rules

An individual is a Russian tax resident in a calendar year if they spend 183 days or more in Russia during that year. The 183-day threshold is assessed on a calendar-year basis, not a twelve-month rolling basis. An individual who is a Russian tax resident is subject to Russian personal income tax (NDFL) on their worldwide income at 13% (rising to 15% above 5 million roubles annually). A Russian non-resident is subject to NDFL only on Russian-source income, but at the higher non-resident rate of 30% for most income types.

The transition from resident to non-resident — ceasing to spend 183 days in Russia — does not require any formal application or notification, but it has consequences that must be anticipated.

CFC Obligations After Departure

The most frequently overlooked consequence of ceasing Russian tax residency is the interaction with CFC obligations. An individual who has CFC reporting obligations as a Russian tax resident retains those obligations until the end of the calendar year in which they cease residency. If the individual becomes a non-resident on 1 August, they are still a Russian tax resident for that calendar year (having been resident for the first seven months) and must file a CFC notification and potentially pay tax on CFC profits for the full year.

In the year following the loss of Russian residency, the CFC obligations cease — assuming the individual does not re-establish residency by spending 183 days in Russia again. But for CFCs that have accumulated profits, the departure may trigger a deemed distribution — the requirement to recognise CFC profits as if they had been distributed in the year of departure — depending on the specific structure and the applicable rules.

Disposal of Russian-Situated Assets

Russian tax law imposes capital gains tax (NDFL at 13%/15% for residents, 30% for non-residents) on the disposal of Russian-situated assets by individuals. An individual who is a Russian tax resident at the time of disposal and who has held the asset for more than five years may qualify for an exemption from capital gains tax on the disposal of certain assets (principally real property and shares in Russian companies). A non-resident does not qualify for this exemption.

Timing the disposal of significant Russian-situated assets relative to the change of tax residency — specifically, ensuring that disposals occur while the individual is still a Russian tax resident and the exemption applies — is a material element of pre-departure planning.

Notification Obligations

Russian tax law imposes notification obligations on tax residents with respect to their overseas assets and accounts. These include: notification of the opening of overseas bank accounts (for Russian tax residents); annual notification of the movement of funds in overseas accounts; and the CFC notifications discussed above.

Upon ceasing Russian tax residency, the obligation to file annual overseas account notifications ceases. However, any accounts opened during the period of Russian residency remain subject to the notification regime for the year in which residency ceases.

The Checklist

A pre-immigration planning exercise for an individual leaving Russia should address: the precise date on which Russian tax residency will cease (and the current year's day-count to determine whether the threshold has already been met or will be met before departure); the CFC obligations for the current and subsequent year; the timing of any planned disposals of Russian-situated assets relative to the residency change; the personal foundation position if one is in place; the notification obligations to be discharged in the final year of residency; and the Russian-source income that will continue to be subject to Russian taxation after departure and at what rate.

We conduct pre-immigration planning exercises for private clients and their overseas advisers as a standard matter type, and provide the Russian-law component of a coordinated plan managed by the client's lead adviser in their destination jurisdiction.