Can a Foreign National Purchase Real Estate in Russia, and Does the Purchase Entitle Them to a Residence Permit?

Can a Foreign National Purchase Real Estate in Russia, and Does the Purchase Entitle Them to a Residence Permit?

ANSWER:

Yes. In general, a foreign national may purchase a flat, residential house, non-residential premises, or other real estate property in Russia. However, there are restrictions concerning land plots. Foreign nationals may not own agricultural land or land plots located in certain border territories. In cases provided for by law, lease may be possible. For persons connected with states that undertake unfriendly actions against Russia, certain real estate transactions may be subject to a special temporary procedure.

An ordinary purchase of a flat or house does not, in itself, grant the right to obtain a Residence Permit (VNZh) and does not replace the migration grounds required for residence in Russia. At the same time, the law provides for a special investment-based pathway to obtaining a VNZh without first obtaining an RVP. This may apply, in particular, if a foreign national acquired a real estate property at the construction stage or no later than two years after it was commissioned, has continuously owned it for at least one year, the property is free of encumbrances, and its total cadastral value is at least RUB 50 million in Moscow, RUB 20 million in the constituent entities of the Far Eastern Federal District, or RUB 25 million in other constituent entities of the Russian Federation.

Even if these requirements are met, a VNZh is not issued automatically. The applicant must submit an application and undergo an assessment of compliance with the applicable investment criteria.