Guide for Russian Investors in Foreign Real Estate (2025)

Important note in advance: This information is neutral and for informational purposes only and does not encourage sanctions avoidance. Investors are strongly advised to seek local and international legal counsel at every step. Deliberately circumventing sanctions may be punishable in multiple jurisdictions.

And so…
While international sanctions against Russia have significantly hampered real estate investment abroad, legitimate routes and structures still exist through which Russian citizens can invest, within the limits of the law.

Use of non-sanctioned banks and intermediaries

Most major Russian banks, such as Sberbank, VTB, and Gazprombank, have been on the EU and US sanctions lists since 2022 and are excluded from the SWIFT network. However, several smaller Russian banks remain outside the scope of sanctions. Transactions are possible through these banks:

• via alternative networks such as SPFS (Russian system) or Mir (payment card network)
• via intermediary accounts in neutral countries such as Armenia, Kyrgyzstan or Uzbekistan
• via crypto transactions or stablecoins

Please note: Even if a bank is not sanctioned, counterparties abroad may still refuse to accept funds from Russia.

Investing through foreign structures

Many Russian investors use international legal entities to purchase real estate in the name of a company or trust, rather than as a private individual:

– Offshore companies

• Popular jurisdictions: Dubai (UAE), Serbia, Kazakhstan, Turkey, Southern Cyprus
• These entities purchase real estate on behalf of the company
• Please note: some banks still refuse transactions if the ultimate owner is Russian

– Trusts and foundations

• Often located in Panama, Belize, Georgia or Nevis
• Legal separation between the property owner and the ultimate beneficiary
• More complex, but useful for inheritance planning or anonymity

Alternative payment methods beyond SWIFT

As international transactions from Russia are blocked, investors are increasingly using alternative payment methods:

• Stablecoins (USDT, USDC) via foreign wallets (e.g. Binance, Bybit)
• Crypto payments to developers or merchants, especially in countries like Dubai , Turkey , Georgia
• Cash payment: still permitted in certain countries (e.g. Turkey), but increasingly subject to limits and registration requirements

Important: Many countries have anti-money laundering regulations and reporting requirements for real estate transactions in cash or crypto.

 

Use of third countries and alternative residence

A growing number of Russian citizens are choosing to become legal residents in sanctions-free third countries , such as the UAE, Kazakhstan, Georgia, and Turkey. In some cases, they also do so through citizenship by investment in countries like Saint Kitts & Nevis.

From these countries, real estate investments can be made more easily, both legally and financially.

Serbia – Not an EU member, with strong ties to Russia, Russians can buy real estate and open bank accounts.
Turkey – Accessible to Russians, ownership possible, Golden Visa, real estate often in hard currency.
United Arab Emirates – Dubai is a popular stopover for real estate transactions and the establishment of offshore companies.
Kazakhstan / Armenia / Uzbekistan – Banks are connected to both the Russian and the global system.

Restrictions in EU countries

A growing number of European countries are imposing strict restrictions on Russian investors, including:

• Prohibitions or restrictions on purchasing real estate (e.g. Latvia, Estonia, Czech Republic, Finland)
• Visa restrictions: no access to Schengen visa for real estate use
• Freezing or refusal of bank transactions from Russia

In countries like Spain, Greece, and Cyprus, there are still opportunities, primarily through legal structures and intermediaries. Recently, however, fraudsters have been exploiting the situation, both in Russia and in these countries, and there have been numerous cases of Russians being scammed with false promises and large advances.

Therefore my recommendations for investors:

• Work exclusively with experienced lawyers or notaries on site, preferably with knowledge of international sanctions law
• Avoid transactions with sanctioned banks, companies or individuals
• Use neutral legal structures and transparent contracts
• Be prepared for compliance investigations by banks, notaries or property registries

Very important: Watch out for secondary sanctions (!)

Secondary sanctions are measures the US or EU can impose on third parties collaborating with sanctioned Russians. The risks you face include:

• Blocking of properties
• Bank accounts can be frozen
• Legal prosecution of straw men (in both the EU and the US)
• Registration obligation of the ultimate beneficial owner (UBO)

In Germany and France, there are increasing controls on constructions involving front men or “legal representatives”.

Structural sheets on request

For investors who wish to operate in a targeted manner in European countries, information sheets can be prepared upon request:

• Legal requirements and permitted structures
• Taxes on purchase, ownership and rental
• Possibilities for residence permits
• Banks and notaries with experience with Russian clients
• Step-by-step plan for safe, transparent purchasing

Important: This information is neutral and for informational purposes only and does not encourage sanctions avoidance. Investors are strongly advised to seek local and international legal counsel at every step. Deliberately circumventing sanctions may be punishable in multiple jurisdictions.