The compatriots are a lot here – you’ll hear these words in almost every country in the world, if referring to the Russian diaspora representatives. There are a lot of the Russians in Montenegro, Bulgaria, Croatia, Spain, Serbia, Czech Republic, Slovenia, Latvia, Turkey, Egypt, Israel and the United States ... but how did they get there? That is the question.
If we leave the international marriages, emigration with employment visa and refugee status out, so only business abroad and status of financially independent applicants are remained for citizens of the Russian Federation. The problem’s solution is always unique and requires different costs.
The overall situation with offers, to which citizens thinking about emigration have just accustomed, has dramatically changed in recent years. Some countries, which used to be quite loyal to the Russian emigrants 5-6 years ago, like the Czech Republic or Croatia, have stopped giving a resident status or seriously complicated the procedure. Others, on the contrary, have opened up new opportunities - like Latvia, Greece and Cyprus did.
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"In fact, all that is left to do for the citizens of Russia is to run a business abroad and to obtain a status of financially independent applicants"
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Some countries assume that having obtained a residence permit, one must stay in the country for more than 183 days in a year, while others don’t. In countries like Spain or Germany, legal support is a very expensive service; but in other ones, such as Bulgaria, it is possible to do make a deal without a lawyer at all. In some countries you have to place a very small amount of money on the bank account, in other ones- to show regular legal income of such an extent that the role of bidders remains only for the owners of medium and large scale businesses. Some oblige to buy, others allow you just to rent ... And that is where the creativity starts.
1. Latvia is among the demand frontrunners
The fact that Latvia gives a residence permit in exchange for the apartment purchase, in the last 4 years hasn’t been learned only by the very lazy persons. The program was launched in 2010, the number of new residents has reached almost ten thousand since then, but this year the Seim sharply hit the brakes, raising the procedure price. Starting from September, Latvia will be almost closed and there would be only the memories left about the recent €72,000 (the minimum price for an apartment in the province, providing a residence permit) allowing to open the European gates, providing the labor permit and possibility to obtain a citizenship. Those who haven’t time to use the program, are now offered to purchase an apartment for €250,000 and pay extra 5% to the treasury for an ID-card - and that is a totally different case. Tatyana and Michael were in time.
Costs
First, they managed to buy an apartment in a half-hour drive from Riga, but located in the region with the provincial threshold before the high demand started and cheap options were over. So, they bought a nice new 3 roomed apartment in Ozolnieki for €75,000. And secondly, having moved, they have learned the language just for two years and even have passed an exam, which score will be taken into account in the subsequent obtaining of permanent residence. And learning the language in Latvia is not an easy deal – everyone speaks Russian and there are no incentives at all.
Utility costs in Latvia consume about €100 per month (they are cheaper in summer), apart from that the life is cheaper than in St. Petersburg, excluding petrol that is a half times more expensive if compared with the rest of Europe.
Details
Labor permit in the EU is good, but only on paper. In reality, Michael, who is 40-year-old Manager from St. Petersburg, doesn’t speak fluent neither English nor Latvian and none in Latvia wants to hire him. And he understood that perfectly. Therefore, he threw all his forces for web design and IT-technologies learning. However, he currently manages to work remotely only for customers from Russia. Tatyana is a lawyer and an economist at once and she is also working remotely with the Russian clients, however, she visits Petersburg with an enviable regularity. It is important that the bigger number of the days was spent in Latvia, or the residence permit will be banned 5 years later. Having settled down to Latvia, the couple opened a small business - legal assistance to compatriots. Activity of the company is taxed similarly to the Russian “easy accounting scheme” that is 10% of turnover.
2. Upside down, or it’s the Spain
Spain is going the next in the emigrant’s popularity rating of countries. Purchasing of property in Spain gives the owner an opportunity to obtain an annual multivisa. According to the Spanish laws, foreign citizens, owning a real estate and sufficient funds for stay, are given a residence permit excluding the right to work. Moreover, even without the right to run a business in this country!
Costs
There are not any limits for price of an apartment or house. But financial independence must be confirmed by official documents translated into Spanish, where it is said that the applicant has an official (!) annual income of at least €50,000 (for a family of three people it’s about €100,000). Services of the Spanish lawyer cost €6,000 – 8,000; time required is 6-9 months. A mandatory time of staying in the country after obtaining a residence permit is more than 183 days in a year (otherwise the status won’t be prolonged for next year), but in the future you may receive a citizenship.
Details
Raisa and her husband bought a house in Spain just before their retirement, hoping that they had finally fulfilled an old dream - to live permanently on the Mediterranean coast. Not to go there only for the summer, but to move there forever. Two retired payments, an apartment in St. Petersburg for renting out and own housing, all this should help to make both ends meet. There is only one "but": they didn’t think in advance about how they will obtain a permanent residence permit in the country.
"We thought that real estate and desire are enough. But it turned out that they aren’t. Nobody warned us that Spanish residence permit is so difficult to obtain and it is almost impossible if you're a pensioner. If we had knew that in advance, we would not have to buy this house. Once we faced with the fact that the residence permit is almost impossible because the required income is almost impossible to be proved, we even rashly wanted to sell the house. We thought then about moving to Bulgaria, as there is easier and cheaper. Well, it’s the Black Sea instead of the Mediterranean one, but at least it’s not St.Pete with its bad weather, dirty environment and high prices! But fast sell of a house in Spain is an impossible mission. We tossed and turned - what to do? Finally, we had borrowed some money and bought an apartment in Latvia or literally, we jumped into the departing train. We are currently obtaining Latvian residence permit and are going live in Spain with it."
3. Bulgaria. Easy and cheap
Bulgaria warmly welcomes the pensioners and they are easily given a residence permit there.
Costs
Buy a property in Bulgaria – no matter which one, even the one worth €15,000. Show your bank account, having €2,000 per person. Medical insurance is required - it’s €90 for a year (covers emergencies, ambulance and hospitalization). Non-conviction certificate (is required, by the way, in any country, as well as medical insurance). Legalized documents on pension status. That’s all! In a couple of months passed after the initial filing of this package of documents, you’ll get a permission to stay in the country and you may stay there forever. But every year you have to apply again in order to renew the permit. And in 5 years you’ll get a permanent residence.
Details
People of working age face with difficulties while obtaining a residence permit in Bulgaria. Vladimir bought a mini-hotel with 10 rooms in Ravda. He spent €195,000. "I thought that we would move and launch a family business. Children would go to school in Bulgaria. But it turned out that for obtaining a permanent residence permission, we had to invest a half times more money and so we would become investors, or to register a company, then officially hire 10 Bulgarians and pay them white wages and payroll taxes ... but there weren’t so many workers needed in this hotel and we couldn’t fed them all! Well, there is a fallback. My brother has a company in Moscow. We had registered its trade mission in Bulgaria and then, being as a sales representative, I was able to get a residence permit. My wife and children got it as my family members. The official version says that we conduct market research, studying the possibility of supplying the Bulgarian cosmetics in Moscow. Although nothing like that hadn’t been initially planned, now I think that we may start working with that later."
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"People of working age are harder to obtain a residence permit in Bulgaria than pensioners"
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Cost of foreign company sales office registration in Bulgaria is about €1,500 (price includes all state fees and attorney's fees). There won’t be any further maintenance costs as according to the law, the trade mission cannot do business and then there is no any accounting activity. It is important that the parent company has not disappeared in reality; otherwise there will be some problems.
4. Need a business idea! Lithuania, Slovenia
In the last years, the popularity of scheme colloquially called "through the registration of business" is growing with those, who want to migrate. The point is that having registered a company in a number of countries, you can immediately apply for a residence permit. But a year later, when submitting documents for the extension, you already need to show business results. If the company earned nothing and did not pay any wages nor taxes, then the permit is not renewed. Slovenia and Lithuania are the most popular countries in which immigrants act in accordance with this scheme, and the government readily grant a residence permit to the owners, even of a very small companies as the most important is that they somehow filled the state budget with taxes and operated in reality, not just on paper.
Costs
The local lawyers ask about €3,500 for entity registration. Tax schemes may vary as there are a lot of nuances. But taxes usually consume no more than 10% of turnover. The residence permit applicant, of course, needs a property - in any country a package of documents anyway includes documentary evidence of owning a place to live in. But there are no any restrictions on the price of real estate.
Details
Veronika is 35 years old and it’s her first year in Slovenia. "We have registered a company but the residence permit has not been issued yet. My husband is not able to leave Moscow because of business and he lives in two houses. First we just decided to try and to see whether we would like the country, would we want to do anything or to live there. I think now that we want. I’m currently trying with different business ideas. It seems that I’ll deal with organization of paid services for the children of immigrants as this niche is still vacant. Services are cheaper to start with than an organization of trade or production are. It is not necessary to start with something totally unfamiliar in an unknown country. And I am a professional in the field of leisure and pedagogy."
5. Demand outsiders
Less popular, not with the buyers of real estate, but with the applicants of resident status, are countries where the law does not clearly identify the algorithm of obtaining the coveted residency. Experts reckon Germany, France and Italy to these countries. "As the card will fall or nothing can be guaranteed. You register a company, build up a business, invest money, hire a lawyer to work on your question but no honest expert will guarantee whether you get a residence permit or not," says Anatoly, expert from Germany.
Another serial is formed by the countries, where the procedure is described quite clearly, but the issue price is too high. The demand is there, but not a mass one.
Costs
In 2009 the Government of the Republic of Cyprus allowed to the non-EU citizens, to become residents of the country, buying property for more than €300,000. The same scheme is used for residence in Portugal given to homebuyers purchasing housing for more than €500,000. In Greece since 2013 it’s from €250,000.
Everywhere you need to show a document, confirming annual income in any country except the one where you're going to obtain the status. A one family generally needs to "show" €20,000.
Details
The residence permit status doesn’t grant the right to work in any of these countries. And in Greece, no one even promises a further permanent residence. "But people still go and buy and obtain - says Julia, Realtor-consultant from Crete – these are those who love Greece, who sought and found a legal and easy way to get the opportunity to live there and those who hope that they will later manage to hold somehow."
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"Residence permit status in most European countries do not grant the right to work"
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Important: these countries are more attracting for wealthy citizens. To legally meet the stated standards of "financially independent" and to live there in reality, having received the coveted residential status, are able those who live on good dividends received from a good investment or on income from Russian business abandoned on someone else's management. An option "to rent an apartment in St. Petersburg and live as a family for fun" is not working there.
UK is the suitable place for more wealthy citizens from the Russian Federation, as cases about turning investments into a residence permit are rare there, if not to say individual cases.
Text: Julia Lozovskaya, especially for ee24.com