Can Indians Buy Property in Russia?

What an Indian citizen can and cannot own

The Russian rulebook divides property into two very different categories. Buildings and premises - apartments, rooms, individual houses, offices, retail units - are open to foreign individuals. Land is where restrictions bite, and they bite hard.

Title is recorded in the Unified State Register of Real Estate (EGRN). What appears in that register, not a contract or a receipt, is what makes you the owner. If a seller offers a 'simple' arrangement where the deal is not registered, treat it as a red flag.

Purchase by an Indian national is not routed through the special account regimes that apply to buyers from countries designated unfriendly. That designation list changes, however, and each bank applies its own compliance reading, so confirm the current position with an independent adviser before you commit funds.

• Apartments, rooms, houses, commercial premises: open to foreign individuals, no residency requirement.
• Agricultural land: foreign citizens cannot own it; lease is possible for up to 49 years.
• Border areas including Sochi, Anapa, Gelendzhik and Novorossiysk are closed to foreign land ownership.
• Strategic sectors: a foreign investor taking a stake in a strategic company needs approval under Law 57-FZ.
• Foreign buyers from unfriendly jurisdictions meet special account regimes and government approvals; verify how your own nationality is currently classified.

New build or secondary: two different purchase mechanics

Most new apartment sales in Russia run through an equity participation agreement (DDU) regulated by 214-FZ. Your money sits in an escrow account at a bank until the developer registers the building and transfers the unit. This protects the buyer, but it also means the developer cannot hand you the keys early, and the escrow bank will run know-your-customer checks on you.

Secondary market purchases are a straight sale and purchase agreement between two parties, followed by registration. Here the risk sits with you: you must verify the seller's title, check for registered encumbrances, unpaid utilities, inherited shares and tenants with registration in the flat. Order an extract from EGRN and a fresh title history before signing anything.

In both routes you can act remotely. A notarised power of attorney to a representative in Russia is the standard tool, and the registration authority accepts documents filed by that representative.

• DDU route: money in escrow, completion tied to the developer registering the building.
• Secondary route: check encumbrances, inheritance history and registered tenants before payment.
• Remote purchase: notarised power of attorney, consular legalisation or apostille as applicable to your documents.
• Registration in EGRN is the moment ownership legally transfers.

Land and closed territories: the restrictions that actually stop deals

Agricultural land is the clearest prohibition. A foreign citizen cannot hold title to it, in any form, including through a company that is foreign-controlled. A long lease of up to 49 years is the workable structure, and it is genuinely used for farming and agribusiness projects, but it is a lease, not ownership.

Separately, a set of border and resort territories is closed to foreign land ownership, including Sochi, Anapa, Gelendzhik and Novorossiysk. Buying a flat in a building in these areas is a different question from buying the plot under it, and the two must be separated in your due diligence.

If your project depends on a specific plot, get a written legal opinion on that plot before negotiating price. Regional rules and municipal zoning add layers that a general answer cannot cover.

• No foreign ownership of agricultural land - lease up to 49 years is the alternative.
• Closed border areas bar foreign land ownership: Sochi, Anapa, Gelendzhik, Novorossiysk.
• Apartment ownership and land ownership are separate legal objects - check both.
• Municipal zoning and permitted use can restrict what you may build or operate.

Buying through a company instead of in person

Many Indian investors who intend to run a business alongside the property set up a Russian legal entity. That entity can hold real estate and lease land, but it brings corporate tax, reporting and accounting obligations with it. The corporate profit tax rate is 25%, with 0 to 5% available in certain special regimes, and the standard VAT rate has been 22% since 1 January 2026. Whether your activity falls into a special regime depends on the region and the sector, and must be confirmed with a tax adviser.

For industrial investors, special investment contracts are a structured route: 90 such contracts with more than 2 trillion rubles of declared investment were reported by the government in 2025. Special administrative regions hosted 674 companies as of 2025, according to the Ministry of Economic Development, and the Free Port of Vladivostok counted 2,130 projects as of 2026 - these regimes are designed for business relocation and project investment, not for buying a flat.

If the target company operates in a strategic sector, a foreign investor's acquisition requires approval under Law 57-FZ. This is a gating item, not a formality, and it applies regardless of how small the stake is.

• A Russian entity can own property and lease land, but adds tax filing and accounting.
• Corporate profit tax 25%; 0 to 5% in special regimes (Federal Tax Service, 2025).
• Standard VAT 22% since 1 January 2026 (Federal Tax Service, 2026).
• Strategic sector stakes require approval under Law 57-FZ.
• Special investment contracts: 90 contracts, over 2 trillion rubles declared (Government of Russia, 2025).

Moving the money from India

This is usually the slowest part of the process. A Russian bank will ask for a documented source of funds, tax residency evidence, identification, and an explanation of the purpose of the payment. Expect the file to be reviewed by a compliance team, not a branch clerk, and expect questions about where the money was earned.

The Russian payment infrastructure is largely domestic now: 86% of exports were settled in rubles and friendly-country currencies in 2025, and 88% of retail payments were cashless in 2025 (Bank of Russia). In practice this means you will need a Russian bank account for utilities, taxes and service charges, even if the purchase itself is paid from abroad.

On the Indian side, outbound remittance is governed by your own country's rules, administered through your bank. Confirm the permitted route, the documentation and any reporting obligation with your Indian bank and a qualified adviser before you sign a purchase agreement. Do not rely on informal transfer channels; they create title and tax problems later.

• Prepare source-of-funds documentation before you make an offer.
• You will need a Russian bank account for taxes, utilities and service charges.
• Russian-side compliance review is bank-specific and can take weeks.
• Indian-side remittance rules are your own responsibility - verify with your bank.
• Take independent compliance advice. This article does not explain or endorse any workaround.

Taxes, holding costs and financing

Property tax for individuals is set at regional level, so the burden depends entirely on where the asset sits; rates and reliefs change, and a local tax adviser should confirm your position before purchase. If you buy land under a house, land tax applies. If you rent the property out, personal income tax applies to that income, and the treatment of residents and non-residents differs - check it, because the difference is material.

Financing is the weak point for non-resident buyers. Russian banks lend to foreign individuals selectively, often requiring local income, local credit history or a larger down payment. The Bank of Russia key rate stood at 14% in September 2026, so mortgage pricing is expensive by international standards and the final offer depends on the bank, not on a published table.

Holding costs are predictable but real: service charges, utilities, insurance, and for commercial assets, management and maintenance. In Moscow, office vacancy was 7.6% in Q2 2026 (IBC Real Estate), which tells you the rental market for commercial space is competitive - do not underwrite a commercial purchase on the assumption of instant occupancy.

• Individual property tax is regional - confirm the applicable rate locally.
• Rental income is taxable; resident and non-resident treatment differs.
• Mortgage access for non-residents is limited and priced off a high key rate environment.
• Moscow office vacancy 7.6% in Q2 2026 (IBC Real Estate).

The practical sequence

A workable order of operations, based on how these deals are actually closed: first decide whether you are buying a unit, a house, a plot, or a share in a company - the legal route changes completely. Second, run the restriction check: agricultural land, closed border territories, strategic sector, zoning. Third, open the compliance file with your Russian bank early, in parallel with the search, not after you find the asset. Fourth, negotiate and sign, with a notarised power of attorney in place if you are not travelling. Fifth, complete registration in EGRN. Sixth, set up tax and utility payments from your Russian account, and calendar the reporting deadlines.

Budget time for the bank and the registration authority rather than for the seller. The parties who lose money in these transactions are almost always the ones who paid before the compliance file was clean.

This is general information about how the Russian market works, not investment or legal advice. Rules, rates and lists change; verify your own situation with a qualified lawyer and tax adviser in Russia and in India before acting.

• Step 1: identify the asset class and the legal route.
• Step 2: check land, closed-territory, zoning and strategic-sector restrictions.
• Step 3: start bank compliance in parallel with your search.
• Step 4: sign, with a notarised power of attorney if buying remotely.
• Step 5: register title in EGRN.
• Step 6: set up ongoing tax, utility and reporting payments.

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