Living and Working in Russia
Quick links: Accommodation / Bank Accounts / Healthcare / Pay & Bens / Tax / Visas / Travel
Accommodation
It is highly recommended that you go to a good real-estate agency and ask them to find you accommodation. Phone them, tell them what you need, leave your phone number and they will call you back two days later with a list of suitable options.
It takes about one month to find an apartment in Moscow so don't be afraid to explore your options. It may be a good idea to rent a short-term apartment for a few days or weeks to have a look around - accommodation in Russia is not as cheap as most people think; a decent western-style apartment in a good area of Moscow will cost about $1000 per month.
If you settle for something less central and less luxurious and you bargain hard, you may be able to find an apartment for $500 per month. The real-estate agent’s fee is usually 70%-100% of one month’s rent.
Bank Accounts
Although the Banking sector is now experiencing strong growth, it still remains relatively small, disjointed and poorly regulated. A large number of banks have only negligible assets; it’s not unheard of for people to have their salaries paid in cash in order to avoid using them.
There are some foreign banks with branches in Moscow and St Petersburg and foreign employees use these for their local banking needs. Expats who wish to open an account should bring a copy of their employment contract.
Healthcare
Besides local doctors, who provide a very high standard of care but often work in poor facilities, there are several Western-run medical centres in the major Russian cities. There is also an American Dental clinic in Moscow.
These all have different policies for payment; some take credit cards, some require cash up front, so make sure you know what you are paying for before you agree to any services. Typically, a single consultation costs around US$120. All foreign citizens who are living and working in Russia are required to have private medical insurance - this is a prerequisite of being issued a visa.
Expatriates requiring specialist medical treatment often fly to Helsinki or return to their home countries.
Pay & Benefits
Salaries in Russia are usually paid in Roubles twice a month. The advance payment is paid in the middle of the month and the rest at the end of the month.
Bonuses are rewarded quarterly or annually depending on the company. Benefits include medical insurance, meals, mobile phone and gym membership.
Tax
In general, taxes are lower in Russia than in the USA and Europe. Russia has a uniform rate of tax on the income of individuals. As of 2006, individual income tax was levied at the rate of 13%. Russian residents pay 9% on dividend income.
A foreign resident employed in Russia only pays tax on income earned in Russia. Almost all traditional expat benefits are liable for taxation in Russia.
Visas
The procedure for obtaining visas and work permits can be difficult and time-consuming, sometimes taking up to several months.
To recruit from overseas, Russian employers must be registered with the Ministry of Ethnic and Migration Policy. To obtain a visa they apply directly to a regional office, enclosing copies of the employee's passport and visa; HIV test certificate; employment contract; and the employer's tax registration certificate and statutory incorporation documents.
Some employees are exempt from obtaining a work permit. These include journalists, lecturers in institutes of higher learning and employees brought to Russia to install foreign equipment.
Travel
Traffic congestion in Moscow is high, driving standards are poor, traffic laws are not well enforced, accidents are common, parking is difficult to find and road signs are often in Cyrillic only. As a result most expats opt not to buy a car, though some choose to employ their own drivers.
The public transport is cheap and reliable, although very crowded in rush hour. In Moscow the main forms of public transport are the metro, tramway and trolleybus. The Metro stations are renowned for their elegant and grand decor and the service is frequent and efficient. Entrances are marked by a large 'M'.
The buses and trolleys tend to be much slower and are usually overcrowded. There are many official taxis and it is also common practice for people in Moscow to hail private drivers and negotiate a price for a lift.
