As of the beginning of 2023, the activity of Russian-speaking property buyers in various foreign countries has more than doubled compared to activity levels at the beginning of 2022.
Cross-border property investors ramped up to or surpassed the pre-COVID-19 level of activity in most countries by the end of 2021.
Since 2020, global travel restrictions have proven to be the primary factor impeding cross-border real estate transactions among Russian-speaking investors, according to Tranio’s latest annual survey.
An increasing number of Russian HNWIs (high-net-worth-individuals) are notifying Russia’s tax authorities about their foreign bank accounts and controlled foreign corporations (CFCs). This follows Russia’s adoption of the Common Reporting Standards (CRS) in 2016, which facilitates the automatic exchange of information regarding bank accounts between partner countries’ tax authorities in a bid to combat tax evasion.
For the first time, more than 50% of affluent Russian nationals have started reporting their foreign bank accounts and controlled foreign companies to the Russian tax authorities. This is the estimate given by the respondents of the third annual joint survey conducted by Tranio and Adam Smith Conferences in 2018.
In early 2018, Tranio conducted its annual survey on Russian-speaking foreign property investors, which involved 476 property market agents from 33 countries.
An important source of information about capital flows out of Russia is the country’s Central Bank, which publishes official individual cross-border transfer statistics. According to its data, in the 12 years between 2006 and 2017 inclusive, $479 billion (or $519 billion, adjusted for inflation) was transferred from Russia to 257 foreign countries and territories.