Taxation of income of citizens with dual citizenship and relocators in 2025
The impact of foreign citizenship on tax residency in the Russian Federation
The definition of tax residency and its connection with the period of stay in Russia is set out in paragraph 2 of Article 207 of the Tax Code of the Russian Federation. According to this paragraph, tax residents are individuals who are actually in Russia for at least 183 calendar days during 12 consecutive months. At the same time, the period of stay is not interrupted by short-term trips abroad, for example, for treatment or study.
It follows from this that the status of a tax resident does not depend on the citizenship of an individual. The main criterion for determining tax residency is the period of stay in Russia. The Federal Tax Service of Russia has repeatedly confirmed this in its explanations.
Payment of personal income tax by remote workers-relocators
In 2025, the procedure for calculating personal income tax for workers working remotely from abroad under an employment or civil law contract will be as follows:
• If the total amount of income for the tax period does not exceed 2.4 million rubles, the rate will be 13%.
• If income is more than 2.4 million rubles, but less than 5 million rubles, the tax will be equal to 312 thousand rubles plus 15% of the amount exceeding 2.4 million rubles.
• For income over 5 million rubles, but less than 20 million rubles, the tax will be 702 thousand rubles plus 18% of the amount exceeding 5 million rubles.
• If income exceeds 20 million rubles, but does not reach 50 million rubles, the tax will be 3.402 million rubles plus 20% of the amount exceeding 20 million rubles.
• For income over 50 million rubles, the tax will be equal to 9.402 million rubles plus 22% of the amount exceeding 50 million rubles.
The method for calculating the progressive rate for remote workers-relocators will be similar to the system for calculating 15% personal income tax. In 2025 and 2026, the increased rate will only apply to the amount of income in excess of the established limits.
