Currency Residence in Russia — How Is It Different from Immigration Residence and Tax Residence?

Updated 18 August 2026.

Russian law uses the word “resident” in several different senses. Immigration residence, tax residence and currency residence may overlap, but they are separate legal concepts and should not be confused.

Immigration Residence: RVP and VNZh

We discussed the Russian immigration residence system in our earlier articles: RVP and VNZh. In brief, an RVP, or temporary residence permit, gives a foreign national the right to reside temporarily in the country — normally for three years. A VNZh, or permanent residence permit, is issued without a fixed end date, although certain exceptions apply. These documents concern a foreign national’s immigration status and right to live and work in Russia; they do not automatically determine tax or currency residence.

Tax Residence

Russian tax residence was also examined separately in our earlier article. As a general rule, an individual becomes a Russian tax resident after being physically present in Russia for at least 183 calendar days during 12 consecutive months. For personal income tax relating to a particular calendar year, the final status is normally determined by counting the days spent in Russia during that year. Citizenship and possession of an RVP or VNZh do not, by themselves, decide tax residence. The status mainly affects whether Russia may generally tax the person’s worldwide income or only income from Russian sources, as well as the applicable tax rules.

What Is Currency Residence?

We have not previously discussed the third concept: currency residence, or, more accurately in English, residence for Russian currency-control purposes.

Under Federal Law No. 173-FZ On Currency Regulation and Currency Control, individual currency residents include:

• all Russian citizens, including Russian citizens who have moved abroad; and
• foreign nationals and stateless persons who permanently reside in Russia on the basis of a VNZh.

An immigrant who holds only an RVP does not become a currency resident merely because of that permit.

This produces results that may initially seem surprising. A foreigner with an RVP who spends 200 days in Russia may be an immigration resident and a tax resident, but still remain a currency non-resident. Conversely, a Russian citizen who has lived abroad for several years may cease to be a Russian tax resident but will ordinarily remain a currency resident.

Currency residence matters because it may create obligations concerning accounts held with foreign banks and certain other foreign financial institutions. Currency-resident individuals are generally required to notify the Russian tax authorities within one month after opening or closing such an account, or changing its details. Sometimes they may also have to submit annual account-activity reports, normally by 1 June of the following year, unless an exemption applies. Russian law also restricts foreign-currency operations between residents and regulates the use of foreign accounts.

The familiar 183-day threshold appears in currency-control law as well, but it has a different function. If an individual currency resident spends more than 183 days outside Russia during a calendar year, many of the foreign-account notification, operation and reporting requirements under Article 12 of Federal Law No. 173-FZ generally do not apply for that year. However, the person does not cease to be a currency resident.

This article is intended as general information rather than advice on a particular transaction.

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