Title: Russians in Cyprus Post by: Cold Warrior on February 26, 2002, 05:00:00 AM Tax Breaks, Warm Weather Draw Russians to Cyprus By Nonna Chernyakova and Russell Working
LIMASSOL, Cyprus -- In 1995, before Russians started settling here in large numbers, their first envoys showed up on the island. "We felt so ashamed for our fellow countrymen," said Kosareva, who moved here with her husband, Vladimir, in 1989 when he came to play professional soccer. "We were ashamed of [former President Boris] Yeltsin, whom they showed drunk on TV. Our Cypriot friends were laughing and we didn't know what to say." Things have changed since then. Today, Russians lounge by the pool at ritzy hotels, buy furs in upscale shops, zip around in Mercedes Benzes and put their money in villas on the sea. But while the nouveau riche may be the most visible of Cyprus's permanent Russian community -- estimates range between 10,000 and 37,000 people -- Russians of more modest means have found a home on this balmy Mediterranean island. Vladimir Kosarev initially came to Cyprus to play professional soccer. He and his family have stayed on, and today he works as a soccer coach. What lures Russian and other businesses to Cyprus is a tax rate of 4.25 percent for offshore companies registered here. Domestic companies, on the other hand, pay 25 percent, but in accordance with European Union requirements, the rate will be evened out. Cyprus hopes the EU will approve a uniform tax rate of 10 percent, which would still be the lowest in the region. It currently costs $3,500 to register an offshore company in Cyprus. And out of the 1,200 registered Russian companies, "only a few hundred are actually alive and working, and very few have offices here," said Yury Pyanikh, president of the Association of Russian Businessmen in Cyprus. Indeed, Cyprus is home to a unique phenomenon: Russians show up with several million dollars and file papers to open a company, yet don't really do any business, said one Cypriot businessman. They call themselves businessmen, but they simply spend money accumulated in Russia. They buy luxury cars, big homes and fancy offices. "But eventually they run out of money and they go home," he said. Wealthy Russians tend to be secretive about their income in Cyprus. "You meet a Russian and you say, 'What do you do?'" said another Cypriot businessman. "And he'll tell you, 'Business.' So you say, 'What kind of business?' And he'll just stare at you." They have a reason to be nervous, said Zatsepin, the Russian press attache. They are uneasy about what will follow after Cyprus joins the EU and a new visa regime is introduced. Others say that even here, wealthy businessmen are nervous about Russian tax officials, who harass companies with excessive inspections and hit them up for bribes. One Vladivostok man relocated here after a smear campaign in the press led by former Governor Yevgeny Nazdratenko. Burned in the past, he keeps a low profile and refuses to talk to the press. Cyprus isn't just a magnet for Russian money. The tiny island is one of the biggest investors in the Russian economy -- the result of a treaty between the two countries avoiding double taxation, said Pyanikh. For this reason, many companies from throughout Europe that do business in Russia use Cyprus as their base. It has a stable Western banking system and offers them a back door into Cyprus. The annual trade turnover between the two countries is $300 million. Cyprus ships agricultural products and clothes to Russia, while Russia exports timber, oil and metal. Another important Russian export to Cyprus -- and perhaps the most obvious one -- are its tourists. Every year, 140,000 to 160,000 Russian tourists visit the island. Along the seaside in Limassol, restaurants, shops and travel agencies post menus and signs in Russian. (Strangely, in a warm country, many shops sell Russians fur coats from Greek manufacturers.) "Russia is one of the few countries whose wave of tourists to Cyprus didn't diminish after Sept. 11," Zatsepin said. A bust of Pushkin sits proudly in this Limassol park. The newspapers often print sad tales of Russians kicked out of the country. In November, local police booted out a group of Russians who had overstayed their visas. And in December, a 52-year-old Russian woman was expelled after her Cypriot husband secretly divorced her at a visa hearing at which neither she nor her lawyer was present. But even those expatriates who have assimilated more successfully into the local landscape sometimes long for home. Longtime resident Kosareva recalls spending her first six weeks here sitting on a balcony and pining for her Russian friends. But when she visited Moscow later that winter, she was welcomed by a snowstorm, rude people and bare shelves in the stores. For the sake of her children, she decided she could adjust to life in the village of Larnaca, which over the past 12 years has grown into a town of 50,000. Over time, she came to love Cyprus. The Kosarevs have seen many changes over their 13 years in Cyprus. In Soviet times, the only Russians they saw came to the island on big ships -- and they were not even allowed to leave port. Title: Thanks for the interesting post n/t Post by: thesearch on February 27, 2002, 05:00:00 AM Title: As some here.... Post by: LP on February 26, 2002, 05:00:00 AM ... in response to Russians in Cyprus, posted by Cold Warrior on Feb 26, 2002
...may recall, I flew an FSU girl to Cyprus in April 2001 and spent 2 weeks there with her. Great climate, Russians everywhere (most menus are available in Russian), lots of things to see and do and the legendary Cypriot hospitality is a fact. They really are some of the friendlest people I've ever met. Of course, one laughed and told me its because they want our tourist dollars, but they all seemed to be grinning most of the time. Btw, almost everyone speaks English, as the Cypriot education system is very good. Its a great place for a vacation. Laid back, lots of history and a very good infrastructure. From April to September the eastern end of the island is one big party. You can rent just about anything from boats to bycicles. I rented a large motorcycle and rode around the island, lol, she loved it but was scared to death the entire time.) A little rough around the edges (lots of construction going on in Lemosos/Limassol), but it was fine. One needs to get used to the fact that many places have two names but not a problem after a little study. Good roads (like interstates in places) but one drives on the left in right hand drive cars, a legacy of the Brits who remain with a military presence. It quite true that the crime rate is very low, I felt safe anywhere we went at any time night or day. Lots of Brits there (they used to run the place) but many EE folks also. They don't see many Americans (especialy with a R/W) and we were the subject of polite interest wherever we went. Of course, I'm speaking only about Greek Cyprus. The Turkish side is a problem to get to but also very beautiful. (Nicosia remains the last divided city in the world, after the Berlin Wall fell.) The "Cyprus Problem" is a touchy subject among the locals and more than once I was appealed to as an American to "tell" the US government to help with this 25 year old issue. (lol, like I have any pull.) Costs? Not a cheap ride. The Cypriot Pound is worth more than the US dollar so its gonna be spendy. It was a nightmare to get there but only because of a one time event which shut the place down the day I was traveling. Otherwise no hassles whatsoever and a great time was had by all. What I remember most are the people, they really are very friendly. The girl I met? Well, thats another story in itself. Suffice to say we did just fine together. The only issue at times was the constant attention Cypriot men show to beautiful women. There is little political correctness in Cyprus and it takes some time to adjust but its all good natured fun. And that Med climate, oh its' sweet. Reminds me of the Northern Californian wine country, which also has such WX. (The Med climate occurs on only 5% of the Earth's surface.) If you need a warm and friendly place to meet a girl during the cold season, I highly recommend it during the spring or fall. As Cypriots are fond of saying: "Its like a Greece that works." Title: How did you arrange her travel? Post by: BubbaGump on February 27, 2002, 05:00:00 AM ... in response to As some here...., posted by LP on Feb 26, 2002
I asked one guy and he used a foreign travel agency. I think he sent the girl some nonrefundable tickets. Title: Simple..... Post by: LP on February 27, 2002, 05:00:00 AM ... in response to How did you arrange her travel?, posted by BubbaGump on Feb 27, 2002
.....She booked a Cyprus "tour" with a Kiev travel agency and I wired them the funds. This way our hotel was taken care of also. There are some minor issues with single FSU women coming into Cyprus, mostly they want to know if she has enough cash to support her stay. Other than that, it was painless for her to enter two days ahead of me. As an American, they won't give you a second glance. They know you're there to spend your green because without tourism Cyprus would be a very different place. As I recall, she had to buy some sort of "visa" upon arrival but it was nothing. I didn't have to do anything at all but show up. It took two days via Amsterdam, Paris, Athens and Damascas, but it should have been a simple connection in Amsterdam on to Cyprus. The folks who run all the airports in Cyprus decided that day to strike (effectivly shutting down the country), and this is what sent me the long way around. Arriving alone at 1 am in a strange country and then having to drive 50 miles at night on the "wrong" side of the road after an exhausting day of travel was an experience I remember all too well. The next two weeks were worth it though, and all went pretty much as planned. She was cute and came up a little short in some areas, but we got through it OK. You can see her at: http://energy.nk.ukrtel.net/lada/lada3.jpg Title: Thanks for the info...... Post by: Cold Warrior on February 26, 2002, 05:00:00 AM ... in response to As some here...., posted by LP on Feb 26, 2002
sounds like a great place to spend some time with a RW,I might give it a try sometime. The Russian connections in Cyprus is definitely a plus. |