Tax Planning
How to Plan Your Taxes in Russia After the 2026 Federal Tax Reform
Russia's sweeping changes effective 2026—from new progressive tax scales for EAEU residents to increased VAT—require individuals and businesses to rethink strategies around deductions, regime choices, and compliance.
By NomadicTax Research Team • 6-7 min read • August 15, 2026
## Overview of Russia’s 2026 Tax Reform
With the enactment of **Federal Law No. 425-FZ** late in 2025, Russia introduced a series of broad changes that took effect starting **1 January 2026**. Among the most impactful are: a progressive personal income tax (НДФЛ) scale for residents of the Eurasian Economic Union (EAEU), increases in value-added tax (VAT), and significant changes in special tax regimes (УСН, ПСН) benefiting small businesses. ([nalog.gov.ru](https://www.nalog.gov.ru/new2026/?utm_source=openai))
## Tax Planning Moves for Individuals
- **Examine your residency status** (Russia, Belarus, Kazakhstan, Armenia, Kyrgyzstan, etc.) as EAEU residents now fall under the progressive income tax scale for labor income. If you floor into the higher brackets, consider ways to shift income timing or structure to avoid unnecessary tax burden. ([nalog.gov.ru](https://www.nalog.gov.ru/new2026/?utm_source=openai))
- **Review deductions**, especially for real estate. New rules extend the property tax deduction for families with three or more children (up to 23 years old, if studying full-time), calculated based on cadastral value per child: 5 m² in an apartment or 7 m² of a house. ([nalog.gov.ru](https://www.nalog.gov.ru/new2026/?utm_source=openai))
- **Plan for gift and foreign agent income taxes**. Income classified under the “foreign agent” status is now subject to a flat 30 % income tax on nearly all forms of income, including gifts and inheritance; deductions are eliminated. Consider timing or structuring these transactions carefully. ([nalog.gov.ru](https://www.nalog.gov.ru/new2026/?utm_source=openai))
## Tax Planning Moves for Businesses and Small Enterprises
- **Select the right regime**: UСН and ПСН thresholds have been substantially lowered (e.g., 20 million RUB for exemption from paying VAT under USN in 2026, then decreases in 2027–2028). ([nalog.gov.ru](https://www.nalog.gov.ru/new2026/?utm_source=openai)) Ensure you assess whether remaining under USN or electing full VAT regime makes more sense.
- **Factor in higher VAT and tax rates**: The base VAT rate increased from 20 % to 22 %, and the calculated rates changed accordingly (e.g. 20/120 % → 22/122 %, etc.). ([nalog.gov.ru](https://www.nalog.gov.ru/new2026/?utm_source=openai)) Also, special tax regimes lost certain VAT exemptions if income thresholds are exceeded.
- **Understand asset-based taxes**: Property and vehicle-tax rules changed—property deductions expanded for multi-child families; automatic delivery of property tax notices via Gosuslugi for those registered in the unified identification system starting 1 August 2026; vehicle tax rates now standardized regardless of import or production date with coefficient reductions for older vehicles in certain regions. ([nalog.gov.ru](https://www.nalog.gov.ru/rn50/news/activities_fts/16635159/?utm_source=openai))
## Practical Examples
- *Family with 3 children renting & owning property*: With the new property tax deductions, such a family should calculate whether they meet the cadastral square meter thresholds to reduce property tax significantly.
- *Small EAEU-resident IT consultant*: Their labor income falls under the progressive NDFL scale—so shifting portions of revenue into dividends or other less taxed categories where allowable may yield savings.
- *USN taxpayer nearing threshold*: If 2025 income exceeded 20 million RUB, in 2026 they lose exemption from VAT under USN. They should evaluate if moving over to full VAT regime is feasible or if keeping under thresholds via restructuring is possible.
## Conclusion
Russia’s 2026 tax changes are far from superficial. **High significance** reforms are altering rates, regimes, and tax bases. To stay ahead: conduct a regime audit, reorganize income timing, and monitor income thresholds closely. Proactive planning now can yield noticeable savings and smoother compliance in the years ahead.
NomadicTax tip: maintain good records by tax period, track any status changes (e.g., “foreign-agent” designation), and consider consulting a local tax adviser well-versed in recent legal nuances.