11 Jan 2023 14:12

Simplified procedure to be available for foreign investors seeking residence permits in Russia starting on Jan 11

MOSCOW. Jan 11 (Interfax) - Foreign investors will have access to a simplified procedure for obtaining a residence permit in Russia starting on January 11, with the relevant government decree coming into force on Wednesday.

"On January 11, a resolution came into force to approve the criteria that must be met by a foreign citizen who has made investments in Russia to issue a residence permit in Russia without obtaining a temporary residence permit," Russia's Economic Development Ministry said in a statement.

According to the government decree, foreigners can obtain such preferences by investing at least 15 million rubles in socially critical regional projects or investing 30 million rubles in a Russian company within three years before applying for a residence permit. It is envisaged that the company should operate for at least three years, and have paid taxes and fees of 6 million rubles in the year preceding application for a residence permit.

"Another option is registration and subsequent possession of a legal entity, which has been operating in Russia for two years and annually pays from 4 million rubles in taxes," - Deputy Economic Development Minister Dmitry Volvach was quoted as saying in the statement.

"Foreign investors can also acquire Russian real estate of any purpose at the stage of construction or within two years after its commissioning, with total cadastral value of 25 million rubles (from 50 million rubles in Moscow, from 20 million rubles in the Far East). Real estate in this case should be free from encumbrances, and must be owned without interruption for a year before an application is filed," Volvach also said.

The deputy minister also noted that grounds for refusal of a residence permit may not only be a failure to meet the approved criteria, but also general rules laid down in the law on the legal status of foreign nationals in Russia.

Interest in the simplified procedure for obtaining a residence permit in Russia is expected primarily from citizens of the EAEU, CIS countries, the Middle East and Asia, Volvach said. At the moment, simplified issue of residence permits is available, for example, for IT-specialists, as well as for citizens of Kazakhstan and Moldova.

The Ministry of Economic Development is estimating likely investments in Russia under the simplified residence permit system in 2023 to total 12 billion rubles in 2023 and up to 40 billion rubles/year in subsequent years.

As reported, the requirements for foreign investors seeking residence permits in Russia were approved as part of the implementation of the federal law adopted on July 14, 2022, which allows free entry into Russia and doing business in any region without obtaining a temporary residence permit.