Romania joined the EU in 2007. Since then numerous investment opportunities in real estate and business have appeared. A lot of foreign investors invest in real estate in Romania...

General information

• Romania is situated in the Southeastern Europe, in the Northern part of Balkan Peninsula, inside and outside of the Carpathians Mountains, on the Danube lower course, bordering the Black Sea;

• Area: 238,391 km² (12th in Europe and 81st in the world);

• Population: 21,6 million inhabitants;

• Airports: Bucharest International Airport Henri Coanda (Otopeni,) Bucharest International Airport Aurel Vlaicu (Baneasa), Constanta, Timisoara, Bacau, Baia Mare, Caransebes, Cluj-Napoca, Craiova, Deva, Iasi, Oradea, Satu Mare, Targu Mures, Tulcea, Suceava, Arad, Sibiu.

Legislation

• Similar legal provisions as in EU (implementation of the Community Acquis);

• Romania’s general legal framework in the field of investment stimulation was adopted by means of Government Emergency no. 85/2008, subsequently amended and completed, regulating principles of investment stimulation, investment fields, types of support available, general eligibility conditions etc.

Taxation

• Competitive tax policy for companies (unique tax of 16%);

• The standard VAT rate is 24%. Reduced VAT rates of 9% and 5% apply for certain goods and services;

• No customs formalities are applied for goods with community status (goods produced in the EU or goods released for free circulation in the EU).

Reasons to invest

• Member state of the EU, NATO, World Trade Organization, etc;

• One of the largest markets in Central and Eastern Europe (ranking 7th in EU , with over 21 million inhabitants);

• Highly skilled labor force at competitive prices (solid knowledge in foreign languages, technology, IT, engineering, etc);

• Rich natural resources, including surface and underground waters, fertile agricultural land, oil and gas;

• Significant touristic potential (Carpathian Mountains, Black Sea, Danube Delta);

• Bilateral agreements between Romania and other countries on investments  promotion and protection;

• State aid schemes for encouraging investors to take upon Romania;

• Continuously improving infrastructure (Executive’s commitment to improve the highway infrastructure to EU standards);

• Highly developed industrial infrastructure, including oil and petrochemicals;

• Presence of branch offices and representatives of various well-known international banks;

• Extended facilities of maritime and fluvial navigation (The port of Constanta is the largest port at the Black Sea).

Facilities for the foreign investors

Romanian legislation in force specifically stipulates that all investors implementing and developing their investment projects in Romania enjoy the same rights and incur the same obligations, irrespectively of their being Romanian or foreign citizens, residents or non-residents.

Following its accession to the European Union (January 1st, 2007), Romania enjoys EU financial assistance under the form of structural and cohesion funds allocated for a five consecutive year period, i.e. 2007-2013.

According to provisions in Government Emergency Ordinance no 85/2008, incentives supporting investment in Romania are available under the form of grants awarded for tangible and/or intangible assets acquisition; financial support from the state budget for newly created job positions; interest bonifications for credit contracting, and other incentives regulated by special laws in force.

Source : Romania Trade & Invest