Self-employment in Russia is booming, with over 12.5 million people now registered under the special tax regime known as the “Professional Income Tax” (NPD). What’s even more interesting? More than half of these self-employed individuals are under 35.
With a simple registration process, low tax rates, and minimal bureaucracy, the NPD system has become a game-changer for freelancers, gig workers, and entrepreneurs looking for flexibility and financial independence.
Who Are Russia’s Self-Employed?
According to recent data:
- 53% of self-employed taxpayers are under 35, including:
- 23% under 26 years old
- 30% between 26 and 35 years old
- 40% are between 36 and 55 years old
- 6.3% are over 55
- The youngest registered self-employed worker is just 14, while the oldest is 99
This data highlights how self-employment is becoming a preferred choice across different generations, with young professionals leading the way.
What Do They Do?
The most popular fields among self-employed workers include:
- Construction and repairs
- Passenger transportation (taxi, delivery services, etc.)
- Marketing and advertising
- Handmade product creation
- Apartment rentals
With the rise of the gig economy, remote work, and digital platforms, more people are shifting toward independent work, taking advantage of the low tax burden (4% or 6%) and simplified reporting.
Why Is the NPD Tax System So Popular?
The Professional Income Tax (NPD) regime was designed to help individuals work legally with minimal administrative hassle. Some key benefits include:
- Easy online registration via the “My Tax” app, partner banks, and government portals
- No need to open a business (IP)—perfect for freelancers and part-time workers
- No VAT or complex tax reporting
- Legally protected work status
This tax system is open not only to Russian citizens but also to individuals from EAEU countries and Ukraine, making it accessible to a broader audience.
The Future of Self-Employment in Russia
The introduction of NPD has helped bring freelancers and informal workers into the legal economy, reducing the shadow market and providing a safe and profitable way to work independently.
As more people embrace flexible work models, the trend of self-employment in Russia is expected to keep growing, empowering individuals to take control of their careers while contributing to the economy.
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