Loans to own controlled foreign companies for property upkeep; transfers for upkeep, education and medical care

What it says⧉

Resident individuals may: (a) lend foreign currency to non-residents they control within the meaning of Article 25.13(3) of the Tax Code, where control has been disclosed to the tax authorities, to maintain (repair, secure and otherwise keep up) the borrower’s property abroad; (b) credit foreign currency to their own foreign accounts to maintain their own property abroad; (c) credit foreign currency to their own foreign accounts to pay for education and medical services for themselves, their spouses and close relatives. Permits (a) and (b) are capped at the amount spent on those purposes in the previous calendar year; all three have no time limit.

The Ministry of Finance published a second extract under the same number, on gifts of securities between spouses and relatives: Extract No. 52/2 (gifts).

Status, October 2026⧉

In force (navigator cards 2.11 and 4.3).

Unofficial translation⧉

Unofficial translation by BCA Unternehmensberatung UG. Only the Russian text is authoritative: Russian original on usd.bcaun.com · publication of the Ministry of Finance ↗. Lapse notes are editorial and not part of the extract.

Paragraph 1⧉

1. Guided by paragraph 16 of the Rules, the Sub-commission of the Government Commission for Control over Foreign Investment in the Russian Federation unanimously decided to permit resident individuals:

#a) to carry out currency operations involving the provision of foreign currency under loan agreements to non-residents that simultaneously meet the following requirements:

– the non-residents are controlled by individuals within the meaning of paragraph 3 of Article 25.13 of the Tax Code of the Russian Federation;

– information on control over those non-residents has been disclosed by the individuals to the tax authorities of the Russian Federation in accordance with the requirements of the legislation of the Russian Federation;

– the funds under the loan agreements are provided for the maintenance (including repair, security and other expenses) of property located in the territory of foreign states and owned by the non-resident borrowers under the loan agreements;

#b) to credit foreign currency to their accounts (deposits) opened with banks and other financial market organisations located outside the territory of the Russian Federation for the maintenance (including repair, security and other expenses) of property located in the territory of foreign states and owned by the resident individuals;

#c) to credit foreign currency to their accounts (deposits) opened with banks and other financial market organisations located outside the territory of the Russian Federation to pay their expenses for education and medical services, as well as such expenses of individuals who are their spouses or close relatives within the meaning of the Family Code of the Russian Federation.

Paragraph 2⧉

2. To establish that the above permits provided for in subparagraphs “a” and “b” apply in an amount not exceeding the corresponding financing for those purposes in the previous calendar year.

Paragraph 3⧉

3. To establish that the above permits provided for in paragraph 1 are valid without time limit.

Operations that rest on it⧉