Nachrichten (Новости)

Tax rates may be increased for persons with several citizenships

On October 2, 2024 a draft law with amendments to the Tax Code of the RF with regard to taxation of the persons who hold citizenship of several countries was submitted to the State Duma of the RF.

In particular, the amendments propose to establish double rates of personal income tax, transport tax and property tax for the persons who are citizens of the RF by birth and simultaneously hold citizenship of a foreign country, except for Belarus, Abkhazia and South Ossetia.

In case of adoption of the draft law the increased tax rates may come into effect from July 1, 2026. Before the specified date Russian citizens holding citizenship of a foreign country have the right to renounce the citizenship of this country. Otherwise, according to the draft bill, they will be charged double taxes (up to the renunciation of citizenship of a foreign country).

As follows from the explanatory note, the draft law was developed for the purposes of minimizing the number of citizens with stable ties to foreign countries.