Russian Kuril Islands

Russian Kuril Islands (RKI) is a territory offering special environment for entrepreneurs, where investors enjoy tax concessions, lower insurance instalments and administrative benefits.

RKI territory includes Yuzhno-Kurilsky, Kurilsky and Severo-Kurilsky Urban Districts of the Sakhalin Region

map of russia

Benefits for RKI residents:

Tax concessions

Lower social security payment

Administrative preferences


A taxpayer is granted a tax exemption applicable for some particular taxes and valid for 20 years, up to December 31, 2046.

Corporate Income Tax
0 % for 20 years

Land taxes
0 % for 20 years

Corporate property tax
0 % for 20 years

Transport tax
0 % for 20 years

Deductions for social security payments

Lower rate for social security payments

7,6 % for 20 years

7.6% instead of 30%: reduced rate of payments to social security funds (Pension Fund, Social Security Fund, Mandatory Health Insurance Fund)

Administrative preferences

Presently a package of some additional preferences for RKI residents is under development, such as:

RKI residents can apply Free Customs Zone (FCZ) procedure in the territory of Kuril Islands. Foreign goods can be imported and used without paying customs duties and VAT.

Simplified procedure of providing the RKI residents with the land plots from the state or municipal property

- Support in fund raising

- Marketing support

- HR-support

How to become RKI resident:

1 Requirements to an applicant seeking to have the status of RKI resident

Businesses incorporated in the territory of Yuzhno-Kurilsky, Kurilsky and Severo-Kurilsky Urban District, after January 1, 2022, may be granted a number of benefits in the field of taxation, social security payments and some administrative preferences.

The applicant should have no separate branches or divisions beyond the territory of Kuril Islands.

The share of the applicant's passive income (rent, interest income) does not exceed 10%

The applicant is not engaged in the following types of activities:

  • - agent or intermediary;
  • - sales (except selling own-produced goods);
  • - extraction and (or) processing of hydrocarbons;
  • - harvesting valuable crustacean species

An applicant cannot be a reorganized business or a business whose owner’s (or its affiliated entity) share in the companies registered before January 1, 2022 in the Kuril Islands, exceeds 50% (Article 1, item 1 of the Federal Law “On amendments to Part 2 of the Tax Code of the Russian Federation”, No 50-FZ, dated 09.03.2022)

2 Prepare and submit a package of documents

2.1. The applicant should notify the tax authority at the applicant’s location on exercising the right for the tax exemption no later than 30 calendar days after the date of the state registration. The applicant has the right to waive the right to the tax exemption from the 1st day of the tax period, subject to written notification to the tax authority no later than December 31 of the year preceding the year from which the applicant waived the right to exemption

2.2. Send a notification to the Federal Tax Service Directorate of the Sakhalin Region (14, Karla Marksa str., Yuzhno-Sakhalinsk, tel: +7 (4242) 740-200) or to its sub-divisions:

  • 5A, Okhotskaya str., Kurilsk; tel. +7 (42435) 9-01-09
  • 19 Shutova str., Severo-Kurilsk; tel. +7 (42453) 2-17-31
  • 1a, Ilyichev Quarter, Yuzhno-Kurilsk; +7 (42455) 2-17-15
3 Granting the status of RKI resident

Under development

"Sakhalin and the Kurils FEDC" LLC

Floor 1, 36 Antona Buyukly Street, Yuzhno-Sakhalinsk, Sakhalin Region
Mikhail Alyoshin

Frequently asked question about RKI

What are the support measures intended for?
The support measures are intended to promote entrepreneurial activities in the territory of Kuril Islands (new jobs, higher amounts of basic capital investments).
© Russian Far East and Arctic Development Corporation, 2023