Summer residents in Russia may sell surplus crops without registration and without paying taxes on the profits, but only if several conditions are met. The rules apply specifically to crops grown on a personal plot and not on land used for other purposes. The core idea is to keep the sale simple while ensuring the activity remains tied to personal, not commercial, production.
The first crucial limit is the size of the allotment. The plot must not exceed 0.5 hectares. In practical terms, that is roughly 50 ares, a size many gardeners manage without turning their hobby into a full-fledged business. The second limit is procedural: the harvest must be produced with one’s own hands, with no hired labor or outside help involved in growing, tending, or harvesting the crop. These two conditions, plus the requirement that the crop be grown for personal use and modest surplus, create a clear boundary around tax-exempt sale.
If any one of these three conditions is not satisfied, the sale income from crops like cucumbers or apples is subject to the standard personal income tax of 13%. The tax applies because the activity shifts from a private, hobby-like effort into a commercial venture beyond the allowed framework for tax exemptions associated with private garden plots.
For those who want to formalize their status, there is an option to register as a self-employed person. In that case taxes are 4% on sales to individuals and 6% on sales to organizations. For traditional individual entrepreneurs, the tax rate stands at 6% on income from sales. Choosing this path changes the tax treatment of the earnings from selling garden crops, and it comes with its own set of reporting requirements.
Proof of summer residence, distinct from agricultural entrepreneurship, can be established with a special certificate. This document is issued by the local horticultural partnership, cooperative, or local authority. Carrying such a certificate helps clarify the nature of the activity when tax questions arise and can simplify interactions with tax authorities.
In the current year, certain regions including Udmurtia and the Kurgan region have been noted in discussions about where these distinctions matter most for summer residents. While many people rely on insurance to cover various emergencies in these settings, consistent adherence to the stated conditions remains the best way to avoid unexpected tax liabilities and to keep garden profits straightforward and manageable.