Russia – Property Letting

How does the property letting process work in Russia?

The overall process of putting a residential property on the rental market in Russia follows a broadly familiar sequence — advertise the property, screen prospective tenants, execute a lease, and collect rent — yet a number of local characteristics distinguish it from other markets. Among the platforms available, Cian.ru stands out as the leading option for landlords with property in major cities such as Moscow and St. Petersburg, offering comprehensive search filters, regularly refreshed listings, and an extensive range of apartments. Avito.ru tends to be more useful for properties in smaller towns and rural locations, where many listings are posted directly by private owners, though the platform carries a higher risk of fraudulent postings.

The approach to vetting tenants varies depending on whether the landlord is working through an agency or dealing directly. Agency-managed lettings generally involve a formal request for documentary evidence of the tenant’s ability to pay, whereas direct landlord-to-tenant arrangements are often less structured and may rely on informal assurances regarding employment, income, and intended duration of stay. Regardless of the approach, tenants are normally required to produce a passport or identity document together with proof of lawful presence in Russia, such as a valid visa or residence permit.

The tenancy agreement must be made in writing and should address all material terms with precision. A well-drafted contract will set out the length of the letting period — commonly six to twelve months initially, with month-by-month continuation thereafter — the monthly rent payable, the conditions governing termination, and any repair obligations placed on the tenant. An inventory detailing furniture, appliances, and other items forming part of the let should also be incorporated into the agreement.

Unlike jurisdictions operating under common law principles, where oral agreements can sometimes carry legal weight, written contracts are both the established norm and strongly advisable in Russia. Whether the property is a traditional apartment or an апартаменты-style unit, landlords should insist on a written agreement and confirm that they hold clear legal authority to let the property. The contract must specify precisely which utility costs are covered by the rent and which remain the tenant’s responsibility, ideally naming the relevant service providers.

Parties are free to agree on whatever lease term suits them. Fixed-term agreements of 11 months are the most prevalent choice, adopted specifically to remain below the 12-month threshold that triggers mandatory state registration. This convention is so deeply embedded in the market that tenants frequently occupy the same property for several years through a series of consecutive 11-month agreements.

What types of rental arrangements are available in Russia — long-term, short-term, and holiday lets?

Russian law draws a distinction between long-term residential lettings — generally those of 12 months or more — short-term arrangements of up to 11 months, and daily or tourist rentals. Each category brings with it different administrative and regulatory consequences. While the parties retain considerable freedom to fix the term themselves, fixed contracts of 11 months remain by far the most common choice precisely because they fall below the registration threshold, and open-ended or indefinite leases are also used, particularly in purely residential contexts.

Short-term and holiday letting has attracted growing regulatory attention in recent years. Legislation passed by the State Duma provides that letting residential premises in apartment buildings — including on a short-term basis — is only permissible where the rights and legitimate interests of neighbouring occupants are respected, communal property maintenance rules are observed, and metering devices are employed. Further legislation taking effect in October 2024 imposed more stringent requirements on seasonal rentals, with the Duma acting to protect the hotel sector and curtail competition from platforms such as Airbnb — a move that produced a sharp contraction in available short-term supply, especially in larger cities.

Anyone intending to operate short-term or holiday lets must satisfy more demanding property standards. Owners are required to update the legal and tax classification of their properties before offering them for short-term rental, and installation of a fire safety system meeting hotel-grade standards — encompassing alarms, extinguishers, and emergency exit provision — is now compulsory. Properties that fall short of these requirements face an immediate ban on letting activity and potentially severe financial penalties, up to and including administrative closure.

Despite the more restrictive environment, short-term rental activity in Russia remains substantial. The total value of the short-term rental market reached 231.2 billion rubles in 2023, climbing to 333 billion rubles by the close of 2024 — a year-on-year increase of 35.4%. Landlords considering this route should consult the ConsultantPlus legal database and obtain specialist legal advice to confirm compliance with the 2024 Housing Code amendments.

What rental income can landlords expect in Russia, and how are rates set?

Russia operates no system of rent controls or designated rent pressure zones for private residential property. Landlords and tenants negotiate rent freely, with the amount, payment frequency, and associated terms left to the parties, subject only to general legal requirements and the obligation to transact in rubles. This distinguishes the Russian market from regulated environments such as Germany or certain Scandinavian countries where statutory caps limit rent increases. Market forces are therefore the primary driver of pricing.

During 2024, asking rents in Moscow rose by as much as 50% in some segments — most notably for compact one-bedroom apartments close to metro stations — propelled by inflation, high mortgage rates, and a significant number of would-be buyers who opted to rent rather than purchase. Entering 2025, demand remains robust in the budget segment, although analysts anticipate a return to more typical seasonal patterns as the year progresses.

More recently, price growth has eased from those peaks. The moderation reflects softer economic conditions, slower wage growth, and an increase in available supply. In Q3 2025, average asking rents in Moscow and St. Petersburg recorded annual growth of just 3% and 4% respectively, while in other major cities with populations exceeding one million, rents actually fell by 11% year-on-year.

In absolute terms, average monthly asking rents in Q3 2025 stood at approximately RUB 114,800 in Moscow, RUB 57,300 in St. Petersburg, RUB 39,000 in cities with populations above one million, and RUB 35,600 in cities with populations between 500,000 and one million. Landlords seeking the latest data should consult Rosstat and the DOM.RF housing platform, as rental values can move rapidly in response to macroeconomic shifts.

Where a property is let directly rather than through an agency, tenants should be aware that a private landlord may raise the rent at will. For this reason, fixing the parameters of any rent review mechanism within the lease — particularly when dealing through an agency — is advisable. Landlords should set out any rent adjustment provisions clearly in the tenancy agreement to prevent future disagreements.

Do landlords need to provide a furnished or unfurnished property in Russia?

Russian law places no requirement on landlords to let their property in a furnished state for a standard residential tenancy. In practice, however, furnished apartments account for the overwhelming majority of rental listings in the market, particularly in the country’s principal cities. Most properties advertised on portals such as Cian.ru and Avito.ru are offered with basic furniture and essential appliances in place, and tenants have come to regard this as the norm.

For residential lettings, landlords typically require a deposit equivalent to one month’s rent at the outset. Furnished apartments — and especially those at the luxury end of the market — may attract a request for a deposit of two months’ rent or more. The degree of furnishing therefore has a practical bearing on deposit expectations and the informal classification of the letting, even though no statutory definition exists.

Every tenancy agreement should include a comprehensive inventory, and the condition of the property should be inspected and agreed upon before the tenant moves in. The inventory must enumerate all furniture, appliances, and other items provided with the property. A detailed, signed inventory at the commencement of the tenancy is the landlord’s most effective safeguard in the event that deposit deductions are later contested. For the smaller number of unfurnished lets, the inventory should document the condition of all fixtures, fittings, and any appliances that are included.

Furnishing standards become particularly relevant in the context of short-term and tourist letting, where higher baseline quality is generally expected and, following the 2024 legislative reforms, operators must in any case satisfy hotel-equivalent compliance standards covering fire safety and hygiene.

Do you need a licence or registration to let a property in Russia?

There is no formal landlord licence required in Russia for standard long-term residential letting. The key registration obligation concerns lease duration: fixed-term agreements of 11 months are almost universally preferred by landlords precisely because this keeps them below the 12-month threshold that triggers mandatory registration with Rosreestr — the Federal Service for State Registration, Cadastre and Cartography.

The prevalence of this practice is strikingly illustrated by the fact that, across the whole of 2024, only approximately 10,000 residential lease agreements for terms exceeding one year were formally registered — a figure that underscores just how deeply the 11-month convention is embedded across the market.

The position for short-term and tourist letting is different. Before offering a property on this basis, owners are required to update its legal and tax classification. Depending on the scale and regularity of the activity, this may entail registering as an individual entrepreneur or as a self-employed person with the Federal Tax Service (FNS). Foreign nationals letting property in Russia should verify current requirements directly with the Federal Tax Service (FNS) and consider instructing a Russian property lawyer, as the rules can differ according to property type, location, and letting model.

Expat landlords must register with the relevant Russian authorities and ensure compliance with applicable short-term letting legislation, bearing in mind that the distinction between long-term and short-term contracts can affect tax obligations. The compliance landscape for non-resident foreign landlords is more involved than for domestic owners, and taking local legal advice is strongly recommended.

How do you obtain a landlord licence or register as a landlord in Russia?

Given that no standalone landlord licence exists for standard residential lets, the principal registration requirements relate either to lease registration with Rosreestr for longer tenancies, or to tax registration with the Federal Tax Service. The steps set out below cover both processes as they apply to a foreign property owner.

1. Obtain a Russian Tax Identification Number (INN). Every landlord receiving rental income from Russian property — including those who are not tax residents — must obtain an INN from the Federal Tax Service. Applications can be made in person at a local FNS office or, for eligible applicants, through the FNS online portal. A valid passport is required, along with a notarised Russian translation of any foreign-language documents.
2. Decide on your tax status. Rental income can be reported as a private individual (физическое лицо), as a self-employed person (самозанятый), or through an individual entrepreneur structure (индивидуальный предприниматель / ИП). These options carry different tax rates and reporting requirements. Self-employed status may be the most straightforward and tax-efficient choice for smaller-scale landlords; individual entrepreneur status may suit those managing several properties on a commercial basis. A tax adviser or the FNS can help identify the most appropriate option.
3. Draft and execute a written tenancy agreement. The contract should address all key matters: rent, term, deposit conditions, allocation of utility costs, inventory details, and provisions for termination. Any foreign-language documents incorporated into the agreement must be notarised and translated into Russian.
4. Register leases exceeding 12 months with Rosreestr. Where the agreed term is more than 12 months, the signed contract, title documentation, and identification must be submitted to Rosreestr for state registration. The registration fee for individuals is approximately 2,000 rubles (around $20) as of 2024; current fees should be confirmed on the Rosreestr website.
5. Satisfy short-term letting compliance requirements (where applicable). Landlords intending to operate short-term or tourist rentals must update the legal and tax status of their property, meet fire and hygiene safety standards, and register with the appropriate local authority. Specialist legal advice and consultation with the local municipality are essential before commencing such activity.
6. Submit annual tax returns. Non-residents are required to file a 3-NDFL tax return by 30 April of the year following the one in which the income was received, with any tax due payable by 15 July of that same year.

All documents originating outside Russia must be formally translated into Russian and authenticated by a local notary before they can be used in administrative proceedings. Given that procedures and fees are subject to change, always confirm the current requirements directly with Rosreestr and the FNS.

What are the rules around deposits in Russia?

Russia has no government-backed tenancy deposit protection scheme of the kind found in the United Kingdom, Ireland, or Australia, where landlords must lodge security deposits with an approved independent custodian. In Russia, deposits are held by the landlord and regulated solely by the terms written into the tenancy agreement.

No statutory ceiling exists on the amount a landlord may charge as a security deposit — sometimes referred to in Russian practice as a “guarantee payment” — in either private residential or commercial lettings. The sum is a matter of negotiation between the parties and must be recorded in the lease. In practice, a deposit equivalent to one month’s rent is the customary amount for residential lettings. For furnished properties or those in the luxury segment, landlords sometimes seek two months’ rent or more.

All tenancy agreements should contain a clearly worded clause specifying the circumstances in which the deposit will not be returned in full. As a general principle, the deposit is refunded when the tenancy ends and the tenant vacates, provided that the property has been returned in good condition. Where damage attributable to the tenant has occurred, the landlord is entitled to make deductions accordingly. Landlords are best protected by carrying out thorough photographic documentation and preparing a signed inventory at both the commencement and conclusion of each letting.

Some practitioners advise tenants to withhold payment of the final month’s rent pending the return of their deposit, or to propose that the landlord apply the deposit against that final month’s liability. Because no independent arbitration body handles deposit disputes, disagreements must ultimately be resolved by negotiation between the parties or, failing that, through the civil courts. Maintaining comprehensive records throughout the tenancy is therefore important for both sides.

Who is responsible for maintenance and repairs in Russia?

The allocation of maintenance and repair responsibilities in Russia broadly follows the distinction between structural or major works — which fall to the landlord — and routine upkeep arising from everyday occupation, which the tenant is expected to handle. The precise terms of the contract are, however, of critical importance. Among the fundamental rights afforded to tenants is the entitlement to occupy a safe and habitable dwelling. Landlords are obliged to ensure that the property meets minimum health and safety standards, including adequate provision of heating, water, and sanitation, and to carry out necessary remedial work in a timely fashion.

More broadly, the law requires landlords to maintain the property in a condition that adequately protects tenants’ well-being, which encompasses addressing any defects that impair habitability. Persistent failure to fulfil these obligations may give rise to disputes and could, in some circumstances, entitle tenants to seek legal remedies against a landlord who neglects their duties.

Where damage to the property results from the tenant’s actions or negligence, responsibility for making good that damage rests with the tenant. As a general rule, the day-to-day maintenance of fixtures and fittings that have deteriorated through tenant use is the tenant’s concern, while structural repairs, significant mechanical failures — such as a breakdown of the heating system — and defects in the fabric of the building remain the landlord’s responsibility. Setting out these obligations explicitly in the lease, rather than relying on implied legal terms, is strongly advisable.

Russian tenants also have a right to privacy within the rented premises. Landlords may not enter the property without giving the tenant reasonable prior notice, save in genuine emergency situations, and tenants are entitled to occupy their homes without undue interference. Periodic inspections are permissible provided they are conducted on reasonable notice as required by law. Unlike some European countries, Russia has no centralised tenancy authority responsible for resolving disputes, which makes clear and comprehensive contractual provisions all the more important.

How are letting agents used in Russia, and what do they charge?

Letting agents and property management companies are a common feature of the Russian rental market, above all in major urban centres. For landlords — and especially those based overseas or unfamiliar with local conditions — an agent can manage every stage of the process from marketing the property and vetting applicants through to preparing the agreement and administering rent collection. Engaging a reputable agency is often the most straightforward route, as agents bring detailed knowledge of the local market and are well placed to identify suitable tenants and, where appropriate, to assist in negotiating terms.

There is no statutory cap on agency fees in Russia, unlike jurisdictions such as the United Kingdom where tenant-facing charges are restricted by legislation. In some arrangements it is the tenant who pays the agent’s commission; in others it falls to the landlord. The question of who bears this cost should be clarified unambiguously at the outset to prevent later disagreement. In current market practice, agents typically charge a commission equivalent to one month’s rent for securing a tenant. Fees vary, so it is worth confirming the current position directly with any agency approached.

For ongoing property management services — particularly valuable for non-resident landlords — agents ordinarily charge a recurring monthly fee, usually expressed as a percentage of the rent. This typically falls in the range of 8–15%, though the precise figure can differ considerably by city and by the scope of services included. No regulated fee schedule exists as of 2025, so landlords should obtain written fee agreements and establish clearly what each service covers. Portals such as Cian.ru list properties from both agencies and private landlords, providing a useful reference point for prevailing market conditions.

Foreign landlords selecting an agent should prioritise those experienced in managing relationships with non-resident clients, who can assist with tax filing obligations, any required lease registration, and the provision or arrangement of power of attorney services where necessary.

What taxes apply to rental income in Russia?

Rental income derived from property situated in Russia is subject to Personal Income Tax (PIT), and the applicable rate depends fundamentally on the landlord’s tax residency status. Russia applies a strict physical presence test to determine tax residency: an individual qualifies as a Russian tax resident if they have been physically present in the country for at least 183 calendar days within any 12-consecutive-month period.

Resident landlords are subject to a progressive rate structure. From 2025, the progressive rate commences at 13% for residents on most categories of income. Income exceeding 5 million rubles annually attracts a 15% rate on the portion above that threshold, while higher income bands are taxed at rates rising to 22% under the progressive scale introduced by the Ministry of Finance for 2025.

Non-resident landlords are taxed at a flat rate of 30%, which is ordinarily withheld at source. Where rental income is received by a foreign legal entity without a permanent establishment in Russia, withholding tax on gross rental receipts also applies at the same 30% rate. The gap between the resident and non-resident rates is substantial, and non-resident landlords should incorporate this into their financial projections from the outset.

Tax deductions are unavailable to non-residents. Resident landlords, by contrast, may be able to offset allowable expenditure such as maintenance costs and loan interest against their taxable income, subject to making the appropriate declarations.

A Presidential decree issued in 2023 partially suspended the tax treaty benefits previously available to nationals of countries designated as “unfriendly,” including the United States, United Kingdom, Japan, and South Korea. In 2024, the bilateral tax agreement with the United States was suspended in its entirety, removing the treaty protections that had previously been available to American nationals in Russia. Nationals of a range of countries should verify whether any double-taxation treaty between their country of residence and Russia remains operative, since this directly affects their overall tax position. The Federal Tax Service of Russia (FNS) and a qualified local tax adviser should be consulted for current guidance.

As a general rule, letting land and property is subject to VAT at 20%, but the letting of residential property is exempt from VAT. In addition, any owner of land or buildings situated on it is liable for Russian land tax at rates determined by local authorities, with the maximum rate for properties with a cadastral value above 300 million rubles having increased from 0.3% in 2024 to 1.5% in 2025.

What are the rules around ending a tenancy or evicting a tenant in Russia?

The termination of a tenancy in Russia is governed by the Civil Code, and the applicable procedure depends on whether the lease is fixed-term or open-ended. For open-ended tenancies, the landlord must give at least three months’ written notice to bring the arrangement to an end without specific cause, while a fixed-term lease ordinarily expires on the agreed date without any notice obligation, unless the contract provides otherwise.

Landlords may only seek to remove a tenant under defined conditions and through a prescribed legal process. Grounds for seeking eviction include persistent non-payment of rent for more than two consecutive months, deliberate damage to the property, breach of the terms governing use of the premises, or the use of the property for unlawful purposes. Eviction from a residential property cannot, however, be effected without a court order; any unilateral action by a landlord — such as changing the locks, removing belongings, or disconnecting utilities — constitutes an illegal act.

Tenants who fall into protected categories — including minors, people with disabilities, and pensioners — benefit from enhanced eviction protections in practice, typically involving longer notice requirements and more exacting court procedures. Russia’s framework is therefore, in effect, more protective of occupants than many comparable markets, particularly where vulnerable individuals are involved.

If a tenant remains in occupation after the expiry of a fixed term and the landlord raises no objection, the tenancy may be treated as having renewed automatically on the same terms as an open-ended arrangement. This risk is especially relevant given the widespread use of rolling 11-month agreements, and landlords should address the question of renewal and its consequences explicitly in every tenancy contract.

The legal landscape is further complicated by an underlying tension in the legislative framework. The Law on the Fundamentals of Housing Policy (1993) initiated a programme to increase rents and clarify property rights, yet its provisions are directly at odds with the 1983 Housing Code, a piece of socialist-era legislation that remains in force. Foreign landlords contemplating the termination of a tenancy or the commencement of eviction proceedings are therefore strongly advised to instruct a qualified Russian lawyer before taking any steps.

What should expat landlords know about managing property remotely in Russia?

Overseeing a Russian rental property from another country presents distinct legal and practical difficulties. The single most important instrument for any non-resident landlord is a notarised power of attorney (доверенность) authorising a trusted individual or professional representative in Russia to act on the owner’s behalf — executing contracts, liaising with utility providers, corresponding with public authorities, and receiving rent. All foreign-language documents must be formally translated into Russian and authenticated by a local notary before they can be used in any official capacity.

Non-resident landlords are taxed at a flat rate of 30% on rental income, ordinarily deducted at source. Where a Russia-based property manager or agent receives rent on behalf of a non-resident owner, they may be treated as a tax agent and thereby required to withhold and remit the tax directly to the authorities. This arrangement should be established clearly with both the agent and a tax adviser before the letting commences.

Expat landlords must register with the relevant Russian authorities and comply with the letting rules applicable to their chosen rental model, since the distinction between long-term and short-term contracts can have significant tax consequences. Non-residents are required to submit a 3-NDFL tax return by 30 April of the year after the income was received, with the resulting tax liability payable by 15 July of that same year.

The repatriation of rental income from Russia has become considerably more complicated since 2022 as a result of international sanctions and Russian capital control measures. Nationals of sanctioned countries may find that payments are routed through blocked accounts (type C), which can extend processing timescales and restrict the availability of funds. Non-resident landlords should take advice from a Russian bank and a financial specialist familiar with cross-border remittance constraints before making any assumptions about the free transferability of rental proceeds.

Non-residents are strongly encouraged to retain a local lawyer to ensure full legal compliance at every stage. Putting in place a combination of a reliable property manager, a qualified Russian tax adviser, and a properly executed power of attorney before the letting begins represents the most sound foundation for effective remote management.

Frequently asked questions

Can a non-resident own and let property in Russia?

Yes. Foreign nationals are legally entitled to own and let residential property in Russia. No additional purchase taxes apply to foreign buyers of real estate, and there is no prohibition on non-residents renting out property they own. That said, non-residents are subject to rental income tax at a flat rate of 30%, typically withheld at source, as of 2025. The compliance obligations facing non-resident landlords are considerably more complex than those applicable to residents, and seeking local legal and tax advice is essential.

Do I need to register my tenancy agreement in Russia?

Fixed-term leases of 11 months are widely used precisely to avoid the state registration requirement, which is triggered once a lease exceeds 12 months. If your agreement does run beyond 12 months, registration with Rosreestr is compulsory. The applicable state registration fee is approximately 2,000 rubles for individuals as of 2024; the current figure should be confirmed on the Rosreestr website.

Is there a tenancy deposit protection scheme in Russia?

No. Russia does not operate a government-backed deposit protection scheme comparable to those in the UK or Ireland. There is no statutory ceiling on the deposit amount — it is agreed between the parties and set out in the lease. Disputes about the return of deposits must be resolved through negotiation or civil court proceedings. Conducting a thorough photographic inspection and preparing a detailed signed inventory at the start of the tenancy provides the landlord’s best protection in any subsequent dispute.

What is the standard deposit amount for a rental property in Russia?

For residential lettings, the customary deposit is equivalent to one month’s rent. In certain cases — particularly for furnished apartments or high-end properties — landlords may seek a deposit of two months’ rent or more. The amount and the conditions under which it may be retained should be stated clearly in the tenancy agreement, reflecting current practice as of 2025.

Do I need a local agent to let my property in Russia?

There is no legal requirement to use a letting agent. However, for landlords who are based overseas and managing their property remotely, engaging a local property manager is highly advisable. Agents typically charge a commission of one month’s rent for placing a tenant. Ongoing management fees generally fall in the range of 8–15% of the monthly rent, though the precise figure varies by city and the level of service provided. No regulated fee cap applies as of 2025.

Can I let my property as a short-term or Airbnb-style rental in Russia?

Short-term and holiday letting is permitted but subject to substantially tighter regulation following the 2024 legislative changes. New requirements that took effect in October 2024 strengthened the framework governing seasonal rentals, with the Duma introducing measures to protect the hotel sector and limit competition from platforms such as Airbnb. Owners must update the legal and tax status of their properties before operating short-term lets, and fire safety installations meeting hotel-equivalent standards are now obligatory. Properties that do not comply risk immediate letting bans and significant financial penalties.

How do taxes on rental income differ for resident and non-resident landlords in Russia?

The difference is considerable. Resident landlords pay Personal Income Tax on rental income at a progressive rate starting at 13% as of 2025, and may be able to offset allowable expenses. Non-resident landlords are subject to a flat 30% rate, ordinarily deducted at source, with no entitlement to claim deductions. The partial or full suspension of a number of double-taxation treaties since 2023 complicates the position further for affected nationalities. Current rules should be verified with the Federal Tax Service of Russia and a qualified local tax adviser.

What happens if a tenant refuses to leave at the end of a tenancy in Russia?

Removing a tenant from a residential property requires a court order — any attempt to force a departure by other means, such as changing locks or disconnecting utilities, is unlawful. Tenants belonging to protected groups — including minors, people with disabilities, and pensioners — are entitled to heightened protections, which in practice can involve longer notice requirements and more rigorous court procedures. Landlords in this situation should seek qualified legal advice without delay and pursue the matter through the courts with the assistance of a Russian lawyer.