How to Buy Property Abroad from Russia: Documents, Payments and Risks

Prepared by the NovAsia Editorial Team

Russian citizens can still buy property abroad in many countries. In most jurisdictions, the central problem is no longer the legal right to own real estate. The practical challenges are moving the money, satisfying banking compliance and understanding exactly what title the buyer will receive.

A successful transaction depends on three things: a workable payment route, a documented source of funds and a contract that protects the buyer. These issues should be addressed before a reservation fee is paid, especially when the purchase is being handled remotely.

What has changed for Russian buyers

Before 2022, an international property purchase was usually straightforward from a banking perspective: the buyer opened a foreign-currency account, signed the contract and sent a SWIFT transfer. Today, each part of that process requires separate verification.

The basic legal position has not disappeared. Cambodia, the UAE, Thailand, Georgia, Armenia, Serbia and many other jurisdictions still allow foreign nationals to own at least some forms of real estate. Restrictions may apply to land, condominium quotas or designated ownership zones, but they generally concern the type of property rather than Russian citizenship as such.

What has changed is the transaction infrastructure.

International payments are less predictable. Some banks reject transfers connected to Russia even when the sender uses an account in a third country. Others require extensive evidence of the origin of funds or return the payment after correspondent-bank screening.

Compliance reviews have become more detailed. Source of funds and source of wealth checks are standard in major property transactions worldwide, but Russian buyers are often examined more closely.

Payment routes are more fragmented. Direct SWIFT transfers from Russia remain possible through certain banks and currencies, while many buyers use accounts in Kazakhstan, Armenia, Georgia, the UAE, Serbia or another third jurisdiction.

The practical conclusion is simple: confirm that the money can reach the intended recipient before choosing a property or paying a non-refundable deposit.

Citizenship, tax residence and location of funds are different issues

These three concepts are often confused, but they affect the transaction in different ways.

Citizenship is the passport used to identify the buyer. Russian citizenship does not automatically prevent a person from buying property in most countries.

Tax residence determines where the buyer reports income and may affect the taxation and disclosure of foreign assets. It does not, by itself, decide whether the person may own an apartment abroad.

The location of funds determines which bank, sanctions filters, currency controls and correspondent institutions are involved. Money held in a Russian bank and money held in the buyer's own Armenian or Kazakh bank account are operationally different even when the owner is the same person.

Two buyers with identical passports can therefore face very different transaction conditions depending on where they live, where the money is held and which banks process the transfer.

The correct sequence of a cross-border purchase

A common mistake is to choose an apartment, pay a reservation fee and only then start looking for a payment route. If the route fails, the deposit may be lost and the buyer may already be in breach of the booking agreement.

A safer sequence is set out below.

Step 1. Confirm the payment route before reservation

The first question is not “Which apartment should I buy?” but “How will the purchase price reach the seller?”

The developer or agent should confirm:

• the legal name of the recipient;
• the recipient bank and account currency;
• whether payment from Russia is accepted;
• whether payment from the buyer's foreign account is accepted;
• whether a third-party payer is permitted;
• which documents the recipient bank may request;
• whether the buyer must cover all correspondent charges.

A vague answer such as “international transfers normally work” is not enough.

Step 2. Investigate the developer separately

A working payment route does not prove that the project is safe. The developer should be checked independently through completed projects, land rights, permits, licences, construction progress and the intended ownership structure.

For a condominium, the buyer should also verify any foreign ownership quota and the process for issuing individual title.

Step 3. Prepare compliance documents early

A source-of-funds review can take days or weeks if the documents are incomplete. The evidence should be collected before the first major payment, not after the transfer has already been stopped.

Step 4. Use a reservation agreement with clear refund terms

The booking document should identify the unit, price, reservation period, recipient and refund conditions. Reservation fees vary widely: some are refundable after adverse legal review, while others become immediately non-refundable.

Step 5. Review and sign the SPA

The Sale and Purchase Agreement is the central transaction document. It should cover the unit, price, payment schedule, completion, delay, area variation, handover, title, termination and dispute resolution.

Step 6. Follow the payment schedule and retain evidence

Each instalment should be supported by an invoice, bank confirmation, receipt and updated seller statement. The buyer should know whether the contractual payment date is the date of sending or the date the money is credited.

Step 7. Inspect the property and register title

Handover should include a technical inspection and defect report. Registration of ownership is a separate legal step and may take place after practical handover.

Documents a buyer should prepare

The exact list varies by country and bank, but the core package usually includes:

• passport;
• proof of residential address;
• tax residence information;
• booking agreement and SPA;
• invoice and payment schedule;
• bank statements;
• source-of-funds evidence;
• source-of-wealth explanation for larger transactions;
• evidence of the relationship between buyer and payer if they are different people.

The buyer's name should match across the passport, contract, invoice and payment order. Even a small transliteration difference can trigger questions or delay title registration.

How to document the source of funds

Source of funds explains where the specific purchase money came from. Source of wealth explains how the buyer accumulated wealth more broadly.

Banks do not merely check whether documents exist. They assess whether the documented financial history is consistent with the size of the transaction.

A transfer between the buyer's own accounts does not explain the original source. The documents should show the full chain: for example, sale of an apartment, receipt of proceeds, transfer to another account, currency conversion and payment to the developer.

International payment mechanics

The payment stage is the most sensitive part of the transaction.

Paying from a Russian bank

A direct international transfer may still be possible through certain non-sanctioned banks, but the route must be checked individually. A bank may support SWIFT yet be unable to send the required currency to the recipient's bank.

Ask the sending bank:

• whether it sends payments to the destination country;
• whether it supports the contract currency;
• which correspondent bank will be used;
• whether the named recipient is acceptable;
• which documents are required;
• how long compliance normally takes;
• what happens if the payment is returned.

Paying from a bank in a third country

A buyer who already has an account in Kazakhstan, Armenia, Georgia, the UAE, Serbia or another jurisdiction may have a more direct route. The foreign bank may still request the SPA, invoice, source-of-funds evidence, tax residence and an explanation of the buyer's connection with Russia.

The buyer should also check any Russian reporting and currency-control obligations associated with the foreign account.

Paying from a local account in the purchase country

In some cases, opening an account in the destination country simplifies later payments because the final transfer becomes domestic. Account opening is a separate compliance process and should not be assumed to be available remotely or automatically.

The payer should normally be the buyer

The clearest structure is payment from the buyer's own account to the seller named in the SPA.

Payment by a spouse, parent, relative or company may be accepted, but it should be agreed in advance and documented through the contract or a written third-party payment approval. Banks may ask for proof of relationship, source of funds and an explanation of why the buyer is not paying directly.

A payment from a company where the buyer is an individual is particularly sensitive. It may be treated as a loan, dividend, salary, gift or unexplained transfer depending on the facts. The legal and tax basis should be clear before the money is sent.

Verify the recipient and protect against invoice fraud

Before every transfer:

1. Obtain the bank details in an official invoice or signed letter.
2. Confirm that the recipient's legal name matches the seller or an expressly authorised group company.
3. Verify the details through a previously known telephone number or contact person.
4. Do not use contact details contained only in an unexpected email changing the account.
5. Never pay an agent's personal account unless a lawyer has confirmed a lawful, documented closing mechanism.

Business-email compromise is a real risk in cross-border property transactions. Fraudsters gain access to an email chain and substitute their own bank details. Once the money is credited abroad, recovery may be extremely difficult.

Use an accurate payment reference

The payment instruction should normally state:

• SPA or booking agreement number;
• project and unit number;
• instalment number;
• buyer's full name;
• the true nature of the payment.

For example:

First instalment under SPA No. 2026-015 for Unit A1507, [Project], buyer [Full Name].

A vague reference or a false description such as “consulting”, “family support” or “loan” can create compliance problems and weaken the buyer's evidence that the SPA was paid.

Correspondent-bank fees and the amount received

SWIFT payments may pass through one or more correspondent banks. Charges are commonly allocated under OUR, SHA or BEN instructions.

If the SPA requires the seller to receive the full invoice amount, the buyer should choose the appropriate fee option and confirm the credited sum. A shortfall of even $50 may be treated as an unpaid balance.

SWIFT confirmation and seller receipt

After sending each payment, obtain the MT103 or equivalent SWIFT confirmation. It records the transfer date, amount, currency, sender, recipient and payment reference.

The bank confirmation proves that the instruction was sent. It does not prove that the seller credited the money to the correct unit. The buyer should also obtain:

• seller receipt;
• account statement showing the payment;
• updated outstanding balance;
• date of the next instalment.

What to do if a payment is delayed or returned

A delayed payment requires prompt action:

1. Request a transaction trace from the sending bank.
2. Notify the seller in writing before the contractual deadline expires.
3. Identify the correspondent or recipient bank holding the transfer.
4. Provide any additional compliance documents immediately.
5. Determine whether the issue is technical, sanctions-related or caused by inconsistent information.

If the money is returned, do not resend it through the same route until the bank has explained the reason. A repeated payment with the same defect is likely to fail again.

What title can a foreign buyer receive?

Ownership rules are jurisdiction-specific. Cambodia is particularly relevant to NovAsia Estate, so the example below focuses on Cambodian condominium ownership.

Strata title in Cambodia

Foreigners cannot own land in Cambodia. They may, however, own a private unit in a qualifying co-owned building if the statutory conditions are met.

The building must be capable of registration as a co-owned building. Foreign ownership cannot exceed 70% of the total private-unit floor area. The unit must be above the ground floor. Once the building has been completed and registered, the foreign owner can receive an individual strata title for the apartment.

An off-plan buyer initially holds contractual rights under the SPA because the final title cannot exist before the building and unit are registered. The SPA should therefore state the developer's obligation to obtain and transfer the title, the expected timing and the consequences if registration is impossible.

Before buying, confirm:

• that the project is intended to become a co-owned building;
• that the selected unit is above the ground floor;
• that foreign quota remains available;
• that the SPA promises an individual title;
• how long title registration is expected to take;
• whether previous projects by the developer received titles.

If the foreign quota is exhausted, direct foreign ownership of that unit is not available. Nominee structures and leasehold arrangements are legally and economically different and should not be presented as equivalent substitutes.

How to investigate a developer

A meaningful developer review goes beyond online ratings and marketing awards.

Corporate identity

Identify the exact legal entity signing the SPA and check it in the relevant company registry. The registered name should match the contract and payment documents.

Land control

Request evidence that the developer owns or lawfully controls the development site. In Cambodia, a hard title generally provides stronger registered protection than an informal or locally recorded soft title. The land should also be checked for mortgages, disputes and other encumbrances.

Construction approval

A valid construction permit should cover the actual site, building type, scale and approved design. The developer's sales licence and the construction permit are separate documents.

Completed projects and real timing

Check the promised and actual completion dates of previous developments. Visit or independently inspect completed buildings. Ask whether owners received titles, how defects were handled and whether management charges changed significantly after handover.

Warning signs include:

• no clearly identifiable completed projects;
• project addresses that do not match actual buildings;
• repeated delays of 12–18 months or more;
• large numbers of vacant units in completed properties;
• recurring owner complaints about water leaks, lifts, title delays or management.

GRR and buyback programmes

A Guaranteed Rental Return is a contractual promise by a named company, not a general market yield. A buyback is an obligation or option under which the property may be sold back at a stated time and price.

For any GRR or buyback, verify:

• the exact obligated legal entity;
• calculation base;
• start date and term;
• gross or net treatment;
• taxes and service charges;
• payment schedule;
• suspension clauses;
• notice requirements;
• default remedies;
• whether the obligation is secured.

The financial condition of the obligated company several years in the future cannot be guaranteed. A marketing promise is only as strong as the signed contract and the counterparty's ability to perform.

Key SPA clauses

The full SPA deserves independent legal review. At minimum, check the following.

Parties

The seller, payment recipient and corporate entity shown in official records should form a coherent legal structure.

Property description

The contract should state the project, building, unit, floor, layout, net area and gross area. Gross area may include walls, balconies and a share of common areas, so the difference can be material.

Payment schedule

The SPA should state the amount, date, currency, bank details and consequences of late payment. If instalments are linked to construction milestones, the method of certifying those milestones should be clear.

Completion and grace period

A target completion date without a long-stop date may allow indefinite delay. The contract should state what happens after the grace period: compensation, suspension of payments, termination and refund deadlines.

Area variation

The permitted tolerance and price-adjustment mechanism should be symmetrical. A buyer should not pay the original price for a materially smaller apartment.

Termination

The agreement should distinguish buyer default, seller default, force majeure and voluntary withdrawal. Refund amounts and deadlines should be specified.

Language

In a bilingual SPA, identify which language prevails. An English or Russian translation may be informative only.

Buying remotely

A remote purchase is possible, but some risks cannot be eliminated by video calls.

Tasks commonly handled remotely include:

• unit selection and live video viewing;
• document collection and legal review;
• booking and SPA signing;
• international payment;
• construction monitoring;
• title collection through a representative.

What remote handling cannot fully replace:

• seeing the neighbourhood at different times of day;
• independently assessing traffic, noise and access;
• speaking with owners in completed projects;
• inspecting workmanship and common areas;
• verifying actual construction progress outside developer marketing.

For a remote purchase, the buyer should have an independent local lawyer and, where necessary, an engineer or representative. A developer-led video tour is useful but not independent due diligence.

Taxes and transaction costs

The purchase price is not the full cost of ownership.

For a Cambodian apartment, possible costs include:

• stamp duty or transfer tax, generally 4% of the applicable taxable value, subject to current incentives and transaction structure;
• title and registration fees;
• legal review and translation;
• bank and correspondent charges;
• furnishing and appliances;
• service charges and sinking-fund contributions;
• management fees;
• tax on rental income;
• annual property-related taxes where applicable.

A prudent budget should include a reserve rather than assume that every project incentive will apply automatically.

Who is suited to buying abroad from Russia in 2026?

The process is more practical for buyers who:

• have a documented source of funds;
• have a confirmed bank route or their own foreign account;
• can retain a separate emergency reserve;
• are prepared to hold the asset for at least five years;
• are willing to pay for independent legal review;
• do not depend on an advertised yield to meet the payment schedule.

Additional preparation is needed where:

• all funds remain in a sanctioned Russian bank;
• the financial history is difficult to document;
• a company or relative will make the payment;
• the buyer expects a quick resale;
• the purchase is intended primarily to obtain residence rights.

A foreign property purchase is unsuitable where the buyer intends to invest all available savings in one illiquid asset and has no financial reserve.

Claims that require written evidence

Do not rely on verbal assurances for:

• foreign quota availability for the exact unit;
• GRR or buyback terms;
• completion date and delay remedies;
• payment acceptance from a particular bank;
• full title registration;
• refund of the reservation fee;
• service-charge level;
• furnishing specification.

Each material promise should appear in the signed transaction documents or in verifiable official records.

Checklist before transferring money

• [ ] The payment route has been confirmed with the sending bank.
• [ ] The recipient is the seller or an expressly authorised account.
• [ ] Bank details have been independently verified.
• [ ] Source-of-funds documents are ready.
• [ ] The reservation refund terms are written.
• [ ] The SPA has been reviewed by an independent lawyer.
• [ ] Completion, grace period and long-stop date are clear.
• [ ] Foreign quota and title eligibility are confirmed.
• [ ] The developer's land rights, licences and construction permit have been checked.
• [ ] GRR or buyback obligations appear in the signed agreement.
• [ ] Taxes, fees and furnishing costs are included in the budget.
• [ ] A reserve remains after the purchase.

Conclusion

Buying property abroad from Russia in 2026 is possible, but the transaction should be built around the payment route, documented origin of funds, developer due diligence and a carefully reviewed SPA.

Cambodia is one market where a foreign buyer can access a US-dollar-priced apartment at a comparatively low entry level and obtain direct ownership through strata title, subject to the statutory restrictions. That does not make every project safe or every payment simple. The result depends on the exact unit, seller, contract, bank route and management plan.

The strongest transaction is not the one with the most attractive rendering or the highest advertised yield. It is the one in which the buyer can prove the payment, understand the legal right being acquired and enforce the contract if the project does not proceed as promised.

This article is for general information only and does not replace individual legal, tax, banking or financial advice. Banking policies, sanctions controls, tax rules and registration procedures should be checked for the buyer's citizenship, tax residence, source of funds and chosen project at the time of the transaction.

To discuss a specific purchase in Phnom Penh, including payment route, unit selection and document requirements, contact NovAsia Estate.

Sources

1. Cambodian legislation governing foreign ownership of private units in co-owned buildings and the registration of strata title.
2. Cambodian Ministry of Economy and Finance guidance on stamp duty and registration charges for real property transactions.
3. National Bank of Cambodia AML/CFT and customer due-diligence requirements for significant cross-border transactions.
4. FATF — Risk-Based Approach Guidance for the Real Estate Sector, 2022.
5. Bank of Russia — current rules and official guidance on cross-border transfers by individuals, checked June 2026.