Cost of living is very affordable with a Cost of Living Index of 38.3. Groceries (38.4) and restaurants (36.7) are significantly cheaper compared to the NYC baseline.

The property price to income ratio is 12.9 years, indicating an expensive housing market. The rent index is 11.8, suggesting rentals are relatively more affordable.

Purchasing power is below average with an index of 68.4 compared to the NYC baseline. This indicates a lower overall buying capacity for residents.

The tax system includes a progressive income tax for residents (13% up to RUB 5 million, 15% above, with a new 5-band system up to 22% from 2025). Non-residents generally face a 30% flat rate on Russian-sourced income. The standard VAT is 20%, and property taxes are relatively low (0.1-2% of cadastral value).

While Russia has a growing startup ecosystem, ranked #34 globally in 2025, the overall business environment is challenging. It is characterized by significant legal, financial, and reputational risks, with pervasive corruption and extensive state interference. Exiting the market for foreign businesses can be complex and costly.

Russia offers a comprehensive social security system, including universal healthcare (OMI) for citizens and legal residents, with free emergency care for all. However, healthcare quality and access vary significantly by region, with better services in major cities. The pension system is three-tiered, with a gradually increasing retirement age.

Deposits are protected by the Deposit Insurance Agency (DIA) up to 1.4 million Russian rubles (approximately USD 18,620) per depositor per bank. The Bank of Russia actively oversees the banking sector, which has demonstrated resilience despite recent geopolitical challenges and sanctions. Higher limits (up to RUB 2.8 million for long-term deposits and RUB 20-30 million for escrow accounts) are proposed or available for specific deposit types.