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Business in Cuba for a foreigner. New opportunities for starting a business in Cuba |
In March, we closely studied the business opportunities of Liberty Island. And at the same time, they found out whether Cuba is similar to Gorbachev’s USSR, how they treat garbage there, and which of the fraternal peoples are already working hard with the Castro brothers. Let's see what to expect from a “bad economy with a positive trend,” as the World Bank calls Cuba.
Where do they come from? investment projects? Anything can probably happen... But for sure, a bespectacled Hollywood wiseguy, butting a monitor with quotes in the night, rattling on the keys of a laptop like a hare and then clamoring for a billion prize money is a consolation for self-propelled computer applications that will die in slavery to their providers. Projects won’t be born that way! Projects, they are like mice, start up. Sometimes in dirty laundry, sometimes in old newspapers... Or they happen - like gumboil or a sprained ankle. Or something else. Our Cuban project did not start, did not appear, and did not even happen, it just coincided. It coincided with grief and joy, with despair and hope, with love and hatred... In short, it coincided with fundamental drunkenness and an inevitable hangover. Last December, a few good men, having suffered an extraordinary catastrophe of capital and beliefs and having become exactly twice as poor (in dollars), cashed out the deposit of indifference and found themselves on the shore of the Venetian lagoon to spend among the palazzos and swamps what was not subject to return anyway. Two days passed in attempts to eat and wash down the sorrows of business. Which didn't stick. I didn’t drink it... I didn’t even smoke strong Tuscan cigars. The grief constantly returned: either in a text message with a swollen Euro exchange rate, or in the idiotic Russian gondoliers. Grief was so clearly with us that even the local pigeons, greedy for garbage, flew around us... In the evening of the second day, losing their minds and potency in the hotel lobby bar, looking at the TV, where the American Secretary of State with a kind horse face was shaking his hand to a dark, very familiar short man in military uniform, one of us (maybe me) dropped it into a glass of strong wine: The Americans defrosted Cuba... We drank to Fidel while standing. Twice. And they fell like winter crops. In the morning the project was already with us. A portion of Libre Cuba is for health, a pigeon medal on the chest is a sign of good luck, and a friend’s official statement: “I’m tired of skiing, I hate winter, I’m flying to Havana” - as the first stage of an investment project. Market, damn it, research... What do we need Hecuba? I tell you the truth, as a consultant to the World Bank - any nonsense becomes a project if there is a demand for this nonsense and there are no competing crazy people! Therefore, when our explorer returned after the Russian Christmas in Cuba, covered in scraps of animal experiences, he brought back an amazing feeling of the beginning, which can be remembered by those who found the Union of the Year, like 1986. When the three-bearded bas-relief was everywhere, the party with the people was indispensable, the senior pioneers smoked cigarettes behind the school with junior Komsomol members, and duty to the Motherland lasted for 2-3 years on either side of the barbed wire. But the sweet smell of profit (a mixture of Turbo chewing gum and Wrangler jeans) has already poisoned youth and youth. Fartsovka ceased to be elite, but had not yet become a currency and the Terminator was already very close... The market-beaten volunteer researcher also said that apart from the high-margin premonitions of the local elite, there is nothing in Cuba. No trade (nothing and no money), no service (disgusting restaurants and hotels - and only in the capital), no transport, no infrastructure. Ports and marinas are almost all blown up because - No passaran! The roads are broken or did not exist, the power supply is represented by an old diesel station from the GOELRO era, where they get water from - it was not possible to find out, and the garbage is thrown wherever necessary. There is nothing, nothing at all. But there is sun, sea, palm trees, beaches and a view of Miami! These main assets of Cuba are the main areas of investment. There are no competitors yet, but absolutely for sure, within a month after the certificate that Fidel has officially..., well, joined his fellow soldiers, America will buy the island of Freedom, since the entire economy of this country easily fits into exotic investments in the portfolio of the average investment bank. In other words, it is written off as a loss at the time of purchase. But in two years, the United States will have 51 states, and tourist traffic from Miami to Cuba and back will again be regulated only by sharks. Not those that are capitalism, but those that are fish! What do we mean to Hecuba? (pre-feasibility report) And it doesn’t matter what we’re talking about: a rare ancient mobile phone that will be offered to you under the counter; a sad personal story - to beg for money or some things; local cigars that will be pushed at you on every corner... Or a piece of cardboard. Five years ago, private enterprise was allowed in Cuba. Since then, all my friends who have been there say the same thing: “It reminds me of the USSR in 1986 - it’s still socialism, but there’s an expectation in the air that some other civilization will soon begin. Business will start.” Therefore, in March 2015, we went to explore business opportunities there for our industry. Let’s have a quick comparison, is it true that “Cuba is like the USSR.” Let's start with a familiar one. Does the picture remind you of anything?
And God forbid, don’t throw anything away. Things here move from family to family: sometimes as a gift, sometimes (secretly) for money. Speculators. Equipment - only if you have someone abroad. “Branded” clothes obtained from those foreigners. Rare and expensive restaurants. Or, a more everyday thing - a simple plastic bag. Everything is familiar so far, right? Perhaps I'm idealizing, but we had - and still have - a more friendly attitude towards foreigners. Without the goal of “definitely getting something.” In Cuba, even if you are from former Union, the scenario is the same - start a conversation: “My friend, believe from me?”, and then ask for money. Try to cheat for money. Or sell something. Why is this so? A huge mass of the population simply does not really work. The rest live on an “engineer’s salary”: 30 dollars a month is normal. And when you can cut your monthly income from a foreigner in a day and you have to survive, then there is no time for old friendship. And in Cuba there is a completely different attitude towards garbage. Naturally, count how many houses and how many trash cans are in the picture: But it also happens like this:
In fact, there are two “garbage cultures” coexisting here. What can be handed over for money - waste paper, for example - is collected. Here is the line to hand over waste paper to a small entrepreneur: Another example is aluminum cans. I personally watched one guy collect them on the street, press them with a stone, and drag them somewhere further. They use something for the household: for example, they can make a muzzle for a dog from a plastic bottle. Well, the rest - that’s the difference! - flies out the window. From cleansing to condoms. Some areas even recommend not walking on sidewalks. It’s better in the middle of the street: otherwise you never know what will fly in from the open window. As a result, half of Havana is essentially one big landfill. And in the evenings, the garbage on the outskirts also burns. Also in Cuba, as you understood from the previous paragraph, there is sex :) Private entrepreneurship is also turning into sex for locals. Since business was allowed in Cuba, some have been scratching their heads about how to survive, if in many cases part of the proceeds must be given to the state almost every day. Others are “scratching their beard.” This is a sign that they have connections in Castro's circle. And things are going better for them. Since the collapse of the USSR, foreign investment in Cuba has been attracted to only one industry - tourism. Therefore, the service sector there accounts for almost 60% of GDP. But since the World Bank believes that “Cuba is a bad economy with a positive trend,” it is necessary to invest in other sectors. Of course, you can pick up trash after tourists. But this is a small matter. And truly cleaning up the coast is only relevant after hurricanes: It turned out that the Ukrainians were already repairing old trucks in Cuba that were supplied by the plant from Kremenchug. And the Belarusians are renovating the fleet of machine tools at their enterprises for the Cubans. With the coming to power of Raul Castro this became possible. This means we need to work for large enterprises. But first you need to come to an agreement with Raul. In our business - waste recycling, there is nowhere without dialogue with the authorities... Personal Jesus The spoken word is not always a lie, but sometimes it is a plan, sometimes it is a password! As soon as the word Raul was uttered, he, Raul, Fidel’s younger brother, the current regent and, indeed, successor, showed up in Moscow. Almost by accident, the fiery revolutionary flew to the Pope (the return of Cuba to the fold of the Catholic Church, this, I tell you, is an event more important than the signing of any papers with the United States), and even flew to the Victory Parade in self-isolated Moscow. He diluted the group of first secretaries of the cotton and potato republics on the podium of VIP guests, supported, so to speak, brothers in arms. To be honest, it was not possible to organize a meeting with Junior, but... But Jesus appeared in the retinue of a tall (not tall) guest! More precisely Don Jesus. Myself. Personally. Great conquistador and investor in Latin America, an elegant caballero in the obligatory gold Rolex and random gold cufflink saucers. In a suit, shirt and shoes, fashionable in the 70s of the last century, but tailor-made yesterday, banker, realtor and developer Don Jesus is included in the presidential offices of all South American countries, but only a few prime ministers of these countries are included in his Barcelona or Dubai offices. Don Jesus is terribly, impossible, mega-cool, and he is also Fidel’s godfather, Raul’s brother-in-law, and Castro’s sister (who lives comfortably in Miami) is his godfather. I won’t explain what this means in Cuba, because it’s the same as here! Our personal Jesus, speaking in an exquisite Castilian dialect, confirmed our hypothesis about the outstanding prospects for waste management on the Island of Freedom, staked out a share in the future concession, left his mobile number and took the Moscow-Rome flight (to catch up with a Cuban relative on the thorny path to the Holy See). But before the soles of his amazing boots left the Russian soil, the merciful Jesus entrusted us to the care of Señor Santiago, “the man who decides everything in Cuba.” Everything or not is not yet known, but after a call to our new Lord Protector, the Cuban government developed extraordinary activity - the Ministries of Tourism, Ecology and Energy, the Directorate of Free Economic Zones - reported that they were waiting for us a month ago with a ready-made project. That this project is definitely a priority among priorities. And that all calculations must be completed by August. Why? Because this is a gift (theirs and ours) to Fidel! We made it... Pasamos, camarada! (or briefly about the project) We have conditionally divided the entire territory of Cuba into 14 intermunicipal nodes - exactly according to the number of provinces. In each of the nodes we plan to place a modern landfill, a waste sorting plant, a network of waste transfer stations, and a base special equipment. And in populated areas, equip waste collection sites and, of course, recycling collection points. The plans are grandiose, so the project was divided into three stages. By the way, the planned “modern integrated system” is, read, full cycle collection and processing. According to the plan, this very profit will surely “drip” into the pockets of the concessionaires until 2043 - the end of the facilities’ service life. That's the plan. Right now, that's all there is to it. By the end of the year, a joint venture should emerge, and in the spring, the signatures of the Cuban authorities will appear on the final project, where the Government of the Republic of Cuba will be the grantor, and the native Eco-System will be the concessionaire. We will begin construction in June 2016. What else? And may Jesus help us! Cuba has a low standard of living and low wages. In recent years, the opportunity to open a business has appeared here, which has become the reason for migration to this distant country. In the ranking of world economic development in terms of GDP in 2017, Cuba did not take any place, since there are no reliable statistical data on the size of the gross product. The minimum wage in Cuba is $9 (576 rubles), the average is $30 (1,920 rubles). Unemployment among the population is 2.7%. Taxation is provided only for entrepreneurs and small business owners. There is little demand in the state for specialists from different countries, but you can find a job. It is worth remembering that the market is quite competitive. Pros of the job:
Disadvantages of work:
Professions in demand in 2019The most in-demand professions in Cuba:
Salary levelFor foreigners, Cuban employers offer the following monthly salaries:
How to find a job without intermediariesTo search for a job on Liberty Island on your own, you can go in several ways: find a vacancy online or use the services of specialized agencies. The main problem is that the Internet in Cuba is still poorly developed. Popular job search sitesTo search for vacancies there are the following sites:
Specialized agenciesThere are practically no recruitment agencies in Cuba, so it is better to turn to international firms:
Current vacancies in 2019Work in Cuba comes in several forms. Work without knowledge of the languageIt is not necessary to know the Cuban dialect of Spanish to get a job. The local population speaks not only English, but also Russian. Therefore, there are usually no language barriers. Accordingly, all available vacancies are open to Russians. Seasonal workYou can go to Cuba for seasonal work. But mostly it will be part-time work on sugar plantations and in ports. Temporary workFor temporary work Teachers have been needed in recent years English language. We also need general workers and administrators in hotels and hotels. Other optionsIn the Cuban state it is also possible rotation method work. These are mainly installers and front-end loader drivers. Contract labor is also provided. Official employment procedureIn Cuba, you need to get a job legally - for this you will need to obtain a permit and a work visa. Sequence of actionsIn order for a Russian or CIS citizen to work in Cuba, his future employer must obtain a work permit. Procedure:
Types of work permitsThere is only one work permit. It is issued for a period equal to the period of validity of the employment contract. In this case, the employee has the right to work only for one employer. Who doesn't need permissionA work permit is usually not required only for diplomats and a number of officials. In other cases, it is more profitable to register it so that there are no problems with migration services in the future. List of main documentsThe following documents are required:
Applying for a work visaWork visas for Russians are issued at the Cuban consulate. The registration fee is $30. To receive, you must provide all the necessary documents. Selection criteria for work visa candidatesThere are no serious requirements for candidates. Knowledge of English is desirable. In addition to the basic documents, you must provide a certified letter to the receiving company. Work visa extensionThe visa is issued for a period of 30 days, the renewal price for each month is $25. But if in employment contract If the work period is long, there is no need to renew the document. Business immigrationSmall and medium business in the Cuban state is a recent phenomenon. At the same time, there are many bureaucratic problems associated with it. A number of restrictions will apply to a foreigner.
A business visa is required. It costs the same as the working one - $30. Features of internship in the countryVolunteer programs are common in Cuba. Russians come as exchange volunteers or on their own. A person buys tickets and visas at his own expense, but is provided with free food and housing on the spot. Language internships are also common here. Consequences for attempting illegal employment in the countryPeople most often come to Cuba with tourist visas, after which some try to work illegally. For this they can be deported from the country. In addition, there are other reasons for deportation:
It is difficult to find a job in Cuba due to... high competition with the local population, and salaries are meager. However, many people are attracted to the island due to its maritime climate and mentality. local population. At the same time, for several years now there has been an opportunity to build your own business here. The guest of the Cigar Portal is entrepreneur Sergei Nyrkov, a member of the MSK, who has just returned from Cuba. - Sergey, you have dedicated the last ten years of your life to Cuba. Does Cuba reciprocate?
The first associations when mentioning the island of Cuba are Fidel Castro, sugar cane, from which chic rum, fiery dancing and cigars are obtained. But still, such a simple and attractive word should top this list - freedom. The republic is called that way – Freedom Island. This name was assigned to the country as a result of the military coup led by Castro, and after that it began to be used for advertising and tourism purposes. Living in Cuba has a number of advantages and disadvantages that are worth mentioning separately. Standard of livingThe advantages include good climatic conditions, low crime rates and warm hospitality from the Cubans. A migrant from post-Soviet territory will not have to radically change his habits and lifestyle - a large number of immigrants from the former USSR live here. A trip here is like traveling in a time machine; a lot of things here are reminiscent of Soviet times, since for a long period the government tried to build communism in Cuba. That is why education and medicine are truly free here. Even a foreigner who is not a citizen can receive qualified medical care. This area is quite well developed, thanks to government support measures. But education, despite its accessibility, leaves much to be desired. If your goal is to study, you should not choose Cuba for this. Again, this is a double impression - doctors, for example, receive a fairly good level of education. For this purpose, specialists from abroad are invited. Regarding economic development, then at the moment the country is in a state of waiting for better times. For a long time, there was a ban on the sale and purchase of mobile phones in the country. Private business developed very poorly. Only with the coming to power of Raul Castro the situation began to change.
In the meantime, the main profit for the state comes from the continuous flow of tourists. This industry is very well developed here. In addition to the tropical climate, travelers are attracted by the picturesque nature, luxurious beaches, year-round diving and snorkeling. Don’t forget about the opportunity to try real Cuban rum and cigars. Cuba is the largest island in the Caribbean Sea, which remains warm off the coast at any time of the year. It is also called the Caribbean Pearl. A big advantage for Russian tourists is the absence of a visa regime between countries. The standard of living can be characterized by the fact that a card system for purchasing groceries is still in effect in Cuba. Essential goods can be purchased in specialized stores at reasonable prices. And this is a big plus considering that incomes here are very low. The average wage is $12. Officials, for example, earn about $20. Therefore, only those Cubans who have help from relatives living in other countries can afford to purchase luxury goods. Cuban pricesThe average price level reflects the truly miserable existence of local residents, if compared with their earnings. One liter of milk here costs almost one and a half dollars, a loaf of bread costs about 50 cents. Eggs, white rice, a kilogram of oranges and a bottle of national beer cost about the same - about one dollar for each product. But for chicken, cheese or apples you will have to pay from three to five dollars. Taking into account the average salary level, after one trip to the store there may be no money left at all.
A new middle-class car here costs 100 thousand conventional units. Relative to the level of salaries, prices for clothing are very high. The cost of a summer dress or jeans starts from 30, a pair of shoes from 40, sneakers from 60 US dollars. Mobile communications and the Internet are not cheap. Before 2008, such benefits were not used here at all, so now this area is at the stage of development. Cuba does not have its own Internet line; it has to use the services of expensive satellites. Cost per minute mobile communications will cost one dollar, and the Internet is about 70 conventional units per month. A local resident has the right to purchase only one SIM card for his phone. Some products, such as beets, potatoes, carrots, may disappear from the shelves for some time due to their seasonality. And private trade in seafood is prohibited here. However, this does not prevent you from finding fish delicacies on the market, as they say, under the counter at very reasonable prices.
Real estateHousing prices in Cuba are not very expensive, although prices fluctuate within a very wide range. The difference is due to the location of the immovable objects. The distance from Havana plays a big role in the cost. Rent of a one-room apartment in the city center will cost 400-500 dollars per month. Similar housing outside the capital will cost 250-300 conventional units. On average the price for square meter when buying an apartment is 500 dollars. So, for 15 thousand dollars you can buy small-sized housing in the very center of Havana. A small house will cost five thousand. Prices for luxury apartments are also quite low - about one and a half thousand per square meter. Secondary housing can even be purchased for pennies. No resort in the Caribbean, except Cuba, can boast of such prices. But only a local citizen can buy real estate here.
Such contractors must work under a license issued by the Cuban authorities. Russians in Cuba are very interested in purchasing real estate, mainly because of its low cost. Tax paymentsSince we are talking about housing, it is immediately worth mentioning what taxes the buyer will have to pay. The tax is 8% of the value of the property, and both the seller and the buyer pay it. That is, in total the state receives 16% from such a transaction. In total, the country provides for eleven types of tax payments. The most expensive tax is levied on profits, its size is 35%. Taxes on income of individuals and legal entities bring significant income to the state. It is imposed on those who have income from trade, receive wages or pension, rents out the property. Transfers from relatives abroad are not subject to this tax. In addition, the Cuban tax system includes a transport tax, which is paid once a year, a property tax, a public services tax, and a sales tax. Pension provisionThe country has established a retirement age of 55 years for women and 60 years for men. Due to the latest indexations minimum size pension payments are 9.5 dollars per month. The average life expectancy of Cuban citizens reaches 77 years of age. Women live on average up to 80 years, men - up to 76. How do Cuban pensioners manage to live so long on such a small pension? Of course, climate and cleanliness play a big role. environment. In addition, a small amount of money does not allow buying extra food; Cubans eat only the most necessary and basic things, without frills. This means that proper nutrition prevails here. But the most important thing is free healthcare. Cuban elders can count on highly qualified, timely assistance. On average, there are about 170 local residents per doctor, which allows us to work conscientiously with everyone. MigrationLiving in Cuba legally is an almost unattainable goal. You can’t just get a residence permit, let alone a national passport. Of all the usual ways of moving - education, employment, investment, the most realistic is marriage to a Cuban. The remaining options are conditional; there are only a few who were able to move with their help. And interethnic marriages are not welcomed by society here. Especially if a foreigner marries a Cuban. Such a union is condemned much more often than the opposite.
Work in CubaFinding a high-paying position on the island is an almost unattainable task. Jobs in Cuba for Russians are characterized by low pay and seasonality. The only area that can be claimed is agriculture. But even here, the most popular job is harvesting sugar cane, for which they pay mere pennies. Similar moral principles, mentality, rich historical past and real freedom - despite the poverty of this republic, it is with all this that it attracts Russian citizens. Free education, medicine, social benefits and low cost of apartments make this Caribbean island an even more tasty morsel for migrants. Moreover, it is quite possible to live well here, you just need to know how to do it. |
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