Many Russian investors prefer to invest their capital in foreign investment assets. The main reason for this behavior is that they have no confidence in the Russian financial system. Investments abroad seem to them much more reliable.
Most often, Russian investments are placed in the following investment instruments:
- real estate;
- ready-made business;
- bank accounts.
Each of the listed investment areas has its own characteristics. Each of them has not only advantages, but also disadvantages. In this regard, it is not possible to identify the best asset for investment abroad.
Investing in overseas real estate
The most popular area for investing abroad among Russians is, of course, real estate. Such trends are associated not only with the fact that foreign real estate does not fall in price. Most investors buy houses and apartments abroad in the hope of leaving Russia, at least if unfavorable situations develop for them. Of course, investing in foreign real estate requires considerable expenses. Therefore, such an investment instrument is available only to wealthy compatriots.
Among the most popular countries for buying houses and apartments are:
- Cyprus;
- Greece;
- Bulgaria;
- Spain;
- USA.
When investing in real estate abroad, Russians prefer tourist centers. Their value not only does not fall, but also increases every year. For example, the US tourist real estate market is experiencing annual growth of 5–6%. The growth rates for housing prices in European countries are also close to these figures.
It should be noted that both inexpensive real estate in Europe and options for wealthier investors are popular. Buy a small house or apartment with an area of up to 50 square meters. m on the coast of Greece and Bulgaria you can easily invest 15 thousand euros. In a resort town in Spain, such real estate will already cost about 50 thousand euros, which is quite attractive for compatriots, especially in comparison with Russian prices.
Investments in US real estate will cost much more. An average home in attractive Florida will cost an investor between $100,000 and $200,000. In Detroit and Atlantic City, real estate is cheaper, however, these cities do not have a good investment climate.
Read more about how to invest money in real estate.
Europe
Search for a partner
I am looking for partners, I own a premises of 418 m2. Cafe-restaurant on the very border of Europe and Russia, 115 km from St. Petersburg
2019-02-07 23:00
I propose a partnership - to open a cafe-restaurant in a promising, very advantageous place for this, in an old building, which is located on the very city…
We are looking for partners to open a Casino in an old 16th century mansion in Estonia, on the border with Russia
2021-02-03 12:07
We are looking for reliable partners to open a Casino in a promising, advantageous location. An ancient mansion from the 16th century, which is located in a unique…
I am looking for partners to open a Hotel on the border with Russia and Europe, the city of Narva, a 15th century mansion, 115 km from St. Petersburg
2020-02-16 11:23 Archived announcement
I am looking for partners to open a Hotel in a unique historical place, in an old mansion of the 15-16th century, on the border of Europe and Russia, 115 km from Sa...
I am looking for partners to open a cafe on the coast of Zanzibar.
2021-02-08 08:55 Archived announcement
I am a qualified all-rounder chef of the highest category. My knowledge and 20 years of experience as a cook will bring a stable income from the simplest products...
Creation of cooperation projects and companies in the European Union
2021-01-21 14:29 Archived announcement
I have deep knowledge in business management (logistics, import/export, warehouse management, production, accounting, filing...
The first authentic brewery in Russia!
2020-11-09 22:32 Archived announcement
Good afternoon I am looking for a partner to implement an interesting, highly profitable project. I am a highly qualified specialist in authentic beer...
Looking for a partner in a flower nursery in Montenegro
2020-05-19 16:34 Archived announcement
I am looking for a partner in a ready-made business, a nursery of ornamental crops and a flower shop with the possibility of living there. Located in Montenegro, r...
Looking for a business partner
2020-04-26 20:48 Archived announcement
My name is Elena, I moved to the Netherlands 2 years ago and am looking for a business partner, open to different offers and options, this could...
Partner for project development
2020-03-25 18:56 Archived announcement
We created a live communication project. We have been investing in a voice communication widget for a long time. Today it is ready in its first version and we have created...
A team of IT specialists is looking for serious projects
2019-11-28 23:20 Archived announcement
A well-coordinated team consisting of a project manager, a system analyst, database designers and developers, a data administrator...
I am looking for partners to open a Hotel on the border with Russia and Europe, the city of Narva, a 15th century mansion, 115 km from St. Petersburg
2019-02-07 23:03 Archived announcement
I am looking for partners to open a Hotel in a unique historical place, in an old mansion of the 15-16th century, on the border of Europe and Russia, 115 km from Sa...
I am looking for an investor (partner) to develop a trading and manufacturing business in Europe
2019-05-04 18:02 Archived announcement
The essence of the business idea: Production of frozen fish (fillet) products from Atlantic fish (cod, including Russian raw materials). Production...
We are looking for a partner for an existing bar in Berlin
2019-02-26 14:10 Archived announcement
The bar has been operating for the past 20 years, we bought the business more than a year ago and at the moment additional investments are required for ...
Looking for an investor/partner
2019-02-21 21:01 Archived announcement
Hello everyone, I am looking for an investor and partner in the transport business. I am interested in an amount of 8000e to replenish turnover. The percentage of the transaction is 10% monthly...
IT project for manufacturers
2019-02-05 18:46 Archived announcement
I offer a partnership to a person who is familiar with production and close to the principles of the production cycle. The project is ready, funding is in progress...
Looking for a partner in Sochi
2019-01-04 21:40 Archived announcement
Hello! I am planning to move from Europe to the Russian Federation, Sochi for permanent residence. I am looking for interesting contacts and projects for joint development. What are you interested in: -…
Shoe project
2018-11-26 16:21 Archived announcement
Good day, colleagues! Today I am in Italy. I am engaged in the development and outsourcing of leather goods. In my products...
I propose a joint purchase of a hotel in Austria
2018-08-24 14:13 Archived announcement
I propose a joint purchase of a hotel in Austria. Business is fully established. Good hotel, good income. A lot of tourists, both transit and in…
Looking for a partner in Spain
2018-08-12 03:37 Archived announcement
In Spain for more than 20 years. I have my own locale in the city center (near the central market of the city). 5 minutes to the municipal square…
I propose a joint purchase of a hotel in Austria
2018-06-24 10:58 Archived announcement
I propose a joint purchase of a hotel in Austria. Business is fully established. Good hotel, good income. A lot of tourists, both transit and in…
Tourist property in the Italian Alps
2018-03-14 23:42 Archived announcement
I am looking for a partner to enter into a ready-made business of a developer - an Italian with extensive experience. To create an LLC on venture terms in Italy for...
Cafe on the French Riviera (Nice)
2018-04-04 12:39 Archived announcement
We are looking for a partner for an opening cafe in Nice (France). Room in the city center. Fully equipped and ready to go. Entity (…
I am investing in a joint venture for the production of alcohol
2017-09-27 17:35 Archived announcement
Dear Sirs. I am ready to invest in the production of strong alcohol using Bulgarian technology as part of a joint venture. Regions b…
Looking for a partner with experience in SEO
2017-09-01 13:06 Archived announcement
I'm looking for a partner with experience in SEO website promotion. If you have experience and time to develop in this direction, you are ready for productive work...
I am looking for partners to open a Casino on the border with Russia and Europe, the city of Narva, a 15th century mansion, 115 km from St. Petersburg
2016-12-29 14:33 Archived announcement
I am looking for partners to open a Casino in a unique historical place, in an old mansion of the 15-16th century, on the border of Europe and Russia, 115 km from S...
We are looking for investment for the production of alcohol Bulgarian rakia
2017-07-28 10:52 Archived announcement
A Bulgarian-Kazakh joint venture for the production of elite alcohol in Kazakhstan at an existing plant. Investment required...
Football club in Germany
2017-03-20 15:26 Archived announcement
Dear Colleagues! We offer you equity participation in the purchase of a football structure in Germany. The structure includes: 1.Modern football…
Looking for a serious partner in the auto business
2016-05-14 12:29 Archived announcement
In Germany I have an auto dismantling shop, specializing in trucks, construction equipment, selling auto parts for European trucks, cont...
Hotel business in Greece
2015-11-23 11:46 Archived announcement
Project financing is required: loans, equity participation, any other business. From a new ship hull (45x8, 4 decks) build in e...
I offer partnership
2015-08-08 10:22 Archived announcement
I am ready to invest funds to expand an existing business in St. Petersburg or create a new one with a partner. I currently live in Israel and am visiting...
All advertisements
Investing in securities abroad
Investing in securities has always been in demand around the world.
Their presence on the stock market deprives investors of problems with purchasing shares of large foreign corporations. To purchase securities of interest to an investor abroad, one cannot do without the services of a stock broker, an insurance company or a foreign bank licensed to engage in such activities. Depending on the country in which the investor plans to buy shares and other securities, brokerage services will cost him $20–200.
An alternative to directly purchasing shares is to purchase shares in a foreign investment fund. However, this method also does not exclude the participation of an intermediary, the cost of whose services, depending on the country and the amount of the transaction, will range from 30 to 150 dollars. It should be noted that participation in foreign investment funds is quite expensive. They form their assets from shares of thousands of companies, practice more stringent rules of participation and are distinguished by more conservative strategies. The minimum deposit for most of them is tens of thousands of dollars.
Read more about securities as an investment object.
What is FDI
FDI is foreign direct investment. An indicator characterizing long-term capital investments abroad in enterprises, real estate and other assets. Politics and economics always go hand in hand. That is why political sanctions have a direct impact not only on the financial and economic situation in the country, but also on investor sentiment.
The instability of the Russian economy forces us to look for not only profitable, but also stable investment options. Taking into account the current situation, the best solutions are investments in Western countries, which, despite their not very friendly attitude towards the Russian Federation, continue to actively accept Russian investments.
Investing in foreign business
One of the popular areas of investment for Russians is investing in a business opening abroad. According to experts, the most popular countries for such investments are Germany, Poland, Slovakia and the USA. You shouldn’t think that our people invest in foreign businesses because they are “unpatriotic.” Investing money in the development of small businesses in these countries is associated with an acceptable investment climate in them, the availability of benefits, etc. China is not among the countries popular for investment due to the high cost of formalizing a business. Official registration costs entrepreneurs $8,000.
Each country has its own benefits and specifics. For example, in Germany, Russians open a business in order to obtain a residence permit. All that is needed for this is an authorized capital of 25 thousand euros and the employment of five Germans. Investments in the USA are attractive due to the presence of demand for any product and services offered. Today, among our fellow citizens in America, it is popular to open enterprises that do not require large investments:
- pet care companies while owners are away;
- consultations at home - psychologist, massage therapist, lawyer;
- trade via the Internet;
- cleaning of territories;
- private kindergartens, etc.
Investing money in a Polish business promises the investor good profits, because it opens access to European loans and the European sales market. In addition, the Polish government encourages foreign investment as much as possible by creating special economic zones, tax incentives, and ease of registration and doing business. In addition, by registering your business as an LLC, the minimum authorized capital of which is only 1,200 euros, a foreigner can easily obtain a residence permit in Poland.
Read more about investing in business.
The concept of open and closed foreign funds
Based on your investment strategy, you can choose which fund to create - open or closed. For example, if a foreign fund begins to invest in illiquid assets, the buried type of structure is most often chosen. Investors usually cannot withdraw their investment in this case.
In some situations, private closed-end funds may not register with regulators, but then they run the risk of being subject to anti-money laundering laws. Registration details and legal conditions may vary depending on the country where the fund is located.
Funds that are invested in liquid assets are most often structured as open-ended funds. Investors can generally make additional contributions and withdrawals under applicable rules. Open-end funds must meet certain collective investment requirements and reporting requirements.
Investing abroad in precious metals
Of course, gold is considered the most attractive precious metal for investment among Russians. The most attractive countries for its purchase are the USA and the UAE. The popularity of buying gold and other precious metals in America is due to the fall in its price on local exchanges, due to the strengthening of the stock and securities market. Meanwhile, the price of gold in the United States is gradually returning to previous levels, so the popularity of buying the yellow metal in America is gradually falling.
In the UAE the situation is somewhat different. Russians specifically go to the Emirates to buy bars weighing 100 grams or more, since then the price per 1 gram will be lower. The popularity of the UAE in the gold market is due to the presence of a huge number of trading platforms, which, due to competition, offer precious metals at a price significantly lower than that presented on world exchanges.
Learn more about investing in precious metals.
European brokers
Advantages of investing through European brokers:
- Russian-language support;
- Providing access to global platforms;
- Investing through brokers with high country ratings (Denmark, Germany)
Minuses:
- Brokerage account insurance - “only” 20 thousand;
- High risk of investing through Malta (in the case of Exante);
- Additional tax reporting will be required when investing through Saxo Bank (letter of the Federal Tax Service of Russia dated October 12, 2016 No. OA-317/4712);
- Fewer selection of European ETFs. Traded with a larger spread and high commissions;
- Most do not pay dividends (reinvestment).
Saxo Bank
Popular European broker from Denmark. Provides access to exchanges in different countries.
Key Features:
- It is possible to top up your account using a bank card;
- high commissions per transaction - $15;
- additional costs in the form of depository fees;
- fee for inactivity - 100 CU (if there were no operations within six months);
- commission for currency conversion (0.5%) when carrying out transactions other than the account currency;
- There are no fees for replenishing, maintaining or withdrawing funds from the account.
- account insurance: 100 thousand for cash, 20 thousand for securities.
CapTrader
German broker operating under the wing of Interactive Brokers. There is account insurance for 500 thousand. The transaction fee is 2 bucks (for US securities). For European papers you will have to pay at least 4 euros. But there is no minimum monthly fee. Once a month you can withdraw money from your account for free.
Exante
The broker was founded by Russian traders in 2011. Registered... in Malta. The minimum amount to open an account is from 10,000. Gives access to several global exchanges.
The broker is distinguished by low commissions. Trade fee $0.025 for US shares. European securities - 0.05%. There is no mandatory monthly fee for inactivity.
There are fees for withdrawing funds from the account - 25 GBP/25 EUR/30 USD.
The main disadvantage of Exante is that there is no account insurance in case of broker bankruptcy. Registration in a not very reliable country (compared to Denmark and Germany).
Investing money in foreign savings accounts
The most popular type of investment among Europeans and our fellow citizens is savings accounts.
Of course, foreign banks will unpleasantly surprise Russians with their annual interest rates. Both in Europe and in the USA, you are unlikely to find a deposit program that provides payment of more than 5% per annum. Against this backdrop, long-term savings insurance accounts are becoming increasingly popular in Europe. In the event of an insured event, the investor is paid insurance. In the event of his death, the insurance amount is paid to family members. Upon expiration of the term without an insured event and insurance payments, the depositor is given the entire amount of his deposits. Of course, these accounts can last up to 40 years, making the investment meaningless, but they can be a great retirement gift.
When choosing an investment instrument abroad, you should not only take into account all the risks, but also calculate possible additional and indirect costs, as well as a lot of other nuances associated with investing money.
Russian investors in the international arena
Today there is total confusion in the international arena. And this is not surprising. Contradictions between the main players affect not only the political but also the economic situation of individual countries and the entire world community.
Even under these conditions, Russia continues to remain the leader in the list of largest investor countries. The international reserves of the Russian Federation exceed $400 billion. Only China, Japan, Switzerland and Saudi Arabia were ahead of Moscow. This allows Russian investors to conduct active investment activities abroad and make good money from it even in a crisis.
To some extent, the same Western sanctions have intensified the entry of investors into international markets and the outflow of capital from the country. They make it difficult to earn money within the country and push those who have capital to reduce their presence on the territory of the Russian Federation itself. Despite the fact that Russian politicians unanimously insist that the economy has been able to cope with sanctions, the main economic indicators indicate the opposite and encourage Russian investors to invest in other countries.
Invest within Russia or abroad?
The Russian economy is managed by professionals. Therefore, the Kremlin itself rarely invests money in projects within the federation. Investing money in the conventional “Crimean Bridge” or the next Skolkovo means losing your capital.
On the territory of the Russian Federation, money quickly ends up in the hands of officials thanks to well-established corruption schemes. All that remains in such a situation is to turn on the printing press and finish printing what is missing.
For this reason, the Kremlin is trying in every possible and impossible way to lift Western sanctions. And the point here is not even about imperial pride, but about the fact that it is sanctions that make the Russian economy unstable and the country unattractive from an investment point of view. Therefore, Russian investors have long chosen a different path for themselves and are increasingly investing their money in projects outside the Russian Federation.
There are only two reasons why Russians invest abroad:
- The need to preserve investments from the influence of inflation.
- The desire to increase capital.
Statistics show that only 10% of foreign investments are made for profit. In 90% of cases, investors pursue a different goal - to preserve capital.
