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New tax raise makes things harder for Russians living and working abroad

Russian taxes
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Written byNatallia Slimanion 16 May 2023

The Russian government recently took a significant step by introducing a bill in the parliament aimed at raising taxes for Russian citizens working abroad. The draft law, submitted to the State Duma, the lower house of Russia's parliament, proposes a notable tax rate increase for individuals outside Russia and subsequently losing their taxpayer status in the country.  

 

The proposed change in taxation policy is closely tied to Russia's response to the ongoing conflict between Russia and Ukraine, which erupted on February 24, 2022. In the wake of this military mobilization, a considerable number of Russian citizens have chosen to relocate to foreign countries, seeking various opportunities and refuge from the prevailing circumstances.

Over half a million Russian citizens moved abroad since the start of the war

According to recent data, at least 500,000 Russians (potentially one million) have fled the country since the start of the war. In contrast to the reception received by Ukrainian refugees in the West, Russians fleeing their country have faced a different response. Many nations have exhibited hesitation, unsure whether these individuals can be trusted as friends or if they bear responsibility for the situation as a whole. As a result, several countries have implemented entry restrictions or denied new visa applications, creating an atmosphere of uncertainty and anxiety among new Russian immigrants and those already living abroad.

The countries that welcomed the most Russian refugees in 2022 include Georgia, Kazakhstan, Serbia, Turkey, Armenia, Israel, Kyrgyzstan, the United States, and Mongolia.

Russian expats unwilling to return home

It has been over a year since the Russian Federation, under Vladimir Poutine, launched the war in Ukraine. There have also been several immigration waves from Russia in the first weeks of the war and following the announcement of mobilization procedures. By now, many of those who fled the country have found a stable temporary home. However, the new taxation and drafting laws continue to make things difficult for those building a new life abroad.

Turkey

Turkey has established itself as a well-known and favored destination among both Russians and Ukrainians. In the year 2019, prior to the global pandemic, Turkey successfully drew the attention of a significant number of travelers, attracting a staggering 7 million Russian visitors alone. Between January and September 2022, nearly four million Russians arrived in Turkey.

Maria and Dima left Russia on February 25. Both have family in Ukraine and made the decision immediately after seeing the news on the morning of February 24. They first traveled to Georgia and, from there, made their way to Antalya, Turkey, with friends and three pets in total. They have now been living in Antalya for over a year and are making plans to settle here for good, having sold their property in Moscow. “I never thought that I would be living in a foreign country”, Maria says. "I left my life and everything familiar basically overnight. It was scary then, now I think the shock has worn off, and I am starting to think I may never return”.

Her husband, Dimitri, also considers the possibility of never returning home. However, he is also concerned about the implications of living abroad long-term. “We were lucky enough to have enough savings and jobs that could be “moved” to another location. But, to be honest, the news from home is rarely positive, and we are expecting more complications and restrictions each day."

Karolina came to Fethiye (a city in Western Turkey) in May 2022. She was thinking of going further to Thailand — but soon decided to stay.“I wasn't planning on staying in Turkey for long — but I really like the town I live in now. It has everything I need to have a comfortable life away from home. But I do have concerns, of course. They have a lot to do with rising living costs, changing visa policies, and constant “promises” from the Russian government to make things harder for those who have chosen to leave”.

Maksim has been living in Turkey for over a year and a half, having moved to the country before the war. However, with a lot of new arrivals, the prices in the country have been rising, and he is now questioning his ability to stay here for longer. “In the last year, my rent almost doubled. What's more, finding accommodation has become a problem because so many people are moving here to rent and even buy apartments. Everyday expenses are also much higher now, and with how unstable the rouble is, I am not sure if I can afford to stay in Turkey - tax or no tax”.

Georgia

According to various sources, more than 100,000 Russians now live in Georgia, and over 1.3 million Russians have crossed the Georgian border since the start of the war.

Alexey moved to Tbilisi in September after partial mobilization had been announced in Russia — he got a plane ticket the next day. His family (mother, father and sister) are still in Moscow. “I've heard about the new tax law that seems to be aimed at the people who left Russia. Honestly, I am not sure how concerned I am about it right now because there are much bigger things I feel like I have to worry about. But it does look for a lot of Russian immigrants here in Georgia that we are heading to "a point of no return”. 

Kazakhstan

According to Kazakh Interior Minister Marat Akhmetzhanov, over 200,000 Russian citizens have entered the country since the start of the war.

Karina was born in Kazakhstan but spent the last ten years living and working in St.Petersburg. Since the war, she moved back to Kazakhstan and has been trying to rebuild her life in the capital city of Astana. “After over ten years of making a life for myself in Russia, moving back wasn't easy — but it was the only choice that made sense to me. I am now trying to decide on my next step and may try to move to Romania with a group of colleagues. Honestly, I no longer pay too much attention to the new law announcements. I know thongs won't be getting easier — but I don't count on the officials having their citizens back anymore in Russia”.

Armenia

Among the former Soviet nations, Armenia is one of the rare countries that permit Russians to enter with only a national ID, making it an attractive choice for individuals searching for a swift escape. As a result, it has become a popular destination for a diverse range of individuals, including former soldiers, political activists, and others seeking refuge or a fresh start.

Olga and Andrey have been in Yerevan for close to six months. According to them, things back home are getting worse every day, and they have very little faith in the decisions made by the local government. “I hear about new laws being introduced almost every day”, — Andrey says. “Most of these are not meant to make our lives easier. But this year has taught us to adapt quickly and sort of only count on ourselves”.

Everyday life
About

Natallia holds a degree BA (Honours) in English Language and Simultaneous Interpreting and worked as a writer and editor for various publications and media channels in China for ten years.

Comments

  • Forum2
    Forum2last year

    It is not clear what the author tried to say here.

    If this is about the tax policy, than the updated and approved one become more favorable for all Russians who is making money abroad working remotely. For those who has no tax residence status nothing has changed.

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