TOP 10 Benefits of investing in Romania
Why investing in Romania?
I am writing this blog to help investors and show the benefits of investing in Romania. I have more than 20 years of experience in Romania.
My core business is helping investors in Romania with my team of experts employed in my Romanian company since 2006.
Romania is a popular location for investors due to its strategic location in Europe. Investing in Romania has a lot of Benefits. The country offers a strong landscape for potential investment opportunities in Romania.
Romania has a positive business environment, ranking 55th globally on the Ease of Doing Business index. Romania offers investment incentives: tax breaks and grants to attract “investitori in Romania”. The country’s significant infrastructure investments enhance its attractiveness as a logistical hub, making it a strategic choice for foreign investors seeking growth and innovation in a stable democratic setting.
Get in touch with us and we will assist you in making your goals a reality. You can reach us at +32 478 331 799 and ask for Freddy Jacobs. Alternatively, you can connect with us on Linkedin.
An Overview of Investment Opportunities in Romania
The investment landscape of Romania is influenced by various important factors that make it a desirable location for foreign investors. One significant aspect is that non-residents are allowed to buy and sell apartments, while the purchase of land is limited to non-EU citizens, unless it is done through a Romanian companies.
This promotes a relatively open real estate market with a consistent increase in residential property prices. Furthermore, Romania’s strategic location in Europe, membership in the EU, and proximity to major markets such as Central Asia and the Near East add to its attractiveness. Additionally, the country offers abundant opportunities in IT, automotive, and energy industries, supported by a skilled and cost-efficient workforce.
Potential Investment Sectors and Opportunities in Romania
Romania is a hub for IT innovation and digital services. This is due to its competitive costs and abundant talent in the field of IT and telecommunications.
I would recommend to have a discussion around nearshoring some IT activities. I would advise to create your own company in one of our business centers in order to take full control over your nearshoring activities.
Romania is well-positioned for investments in both renewable and conventional energy.
Real Estate: Although there are limitations on the sale of land to individuals who are not citizens of the European Union, the expanding real estate industry, particularly in Bucharest, offers promising chances for investment.
Romania’s Government Policies and Economic Indicators
The government of Romania offers equal treatment to both domestic and foreign investors, without any discrimination based on their source of capital. This, along with a relatively low level of public debt and a favorable growth rate, establishes Romania as a secure and attractive location for investment.
The government’s emphasis on fostering a favorable climate for investment is apparent through its implementation of cautious financial strategies and dedication to digitalization.
Romania’s potential as an attractive destination for foreign investment is reinforced by a combination of factors, including its skilled labor force and vast reserves of natural resources.
Advantages of Investing in Romania
There are numerous advantages of investing in Romania that not only contribute to the growth of the investor, but also contribute to the economic development of the country as a whole. Some of the key benefits include:
1. Tax Incentives and Citizenship Route:
Entrepreneurs can take advantage of advantageous tax rates for small businesses and have the opportunity to obtain Romanian citizenship in four to eight years. With permanent residence permits, there is no need for annual renewals, and family members are also eligible for long-term residence permits.
2. Role of Foreign Investments in Economic Growth and Job Creation:
In Romania, foreign investments play a significant part in driving economic growth. This, in turn, leads to the creation of jobs, which helps to decrease unemployment rates and boost local economies.
3. Advancements in Technology and the Market:
The productivity within the Romanian market is boosted by the incorporation of advanced technology and progressive methods.
Romanian companies can expand their reach to global markets, resulting in a boost in sales and a larger market share.
The country’s efficiency and service delivery are strengthened by enhancements in infrastructure, including transportation systems and utilities.
4. The Competitive Market Environment:
The influx of foreign entities leads to heightened market competition, leading to improved product quality, reduced prices, and enhanced services for consumers.
Local employees are equipped with enhanced skills and knowledge through education and training opportunities offered by foreign investors.
Romania’s position as a desirable investment location is reinforced by a combination of factors, which provide clear advantages to international investors and also contribute to the country’s social and economic progress.
Difficulties and Factors to Consider for Investors in Romania
There are various challenges and factors to consider when making investments in Romania that investors should be mindful of.
Some examples of these are:
The economy and government of Romania have a close relationship, as the government has a notable presence in the economy through state-owned enterprises. This can have an impact on market dynamics. Furthermore, there have been challenges in effectively planning and investing due to the management instability in these enterprises since 2014.
Investors frequently face obstacles from government regulations and bureaucracy, including excessive paperwork, an unstable legislative system, and corruption, all of which can hinder business activities. Additionally, constant changes to legislation without input from the private sector only add to the uncertainty.
Businesses face challenges with infrastructure and workforce in Romania. The inadequate infrastructure can increase costs and hinder productivity, while the scarcity of labor, especially in the northern and western regions, makes it difficult to attract and retain employees. Environmental concerns, such as insufficient waste management methods and problems with air quality and preservation of natural areas, also create complexities for potential investments.
Conducting comprehensive due diligence and gaining a deep understanding of the local context are crucial factors for individuals considering investment opportunities in Romania.
How to Invest in Romania
To those foreign investors considering Romania as their next business location, it is crucial to comprehend the necessary actions to establish a presence. Below is a simplified guide:
1. Acquiring a Residency Permit
Individuals who are not permanent residents have the opportunity to obtain a residence permit that is valid for one year by making an investment in a company based in Romania. This investment will open doors for the possibility of conducting long-term business activities.
2. Investment Priorities in Romania
The General Inspectorate for Immigration has a tendency towards favoring investments in the real estate and technology industries, revealing promising and lucrative areas for international investors.
3. Extension of Stay Permit
The Romanian Agency for Foreign Investments assesses the effect of the investment in order to renew the residence permit and maintain the ongoing business operations.
4. Exceptions
Individuals from the United States, Canada, Japan, and Switzerland are granted exemptions from specific stipulations, including minimum investment requirements, quotas for job creation, and proof of financial stability, which facilitates a more seamless entry process.
5. Documentation
Important papers consist of evidence of company ownership or shares, proof of legal accommodation, documentation of financial stability, proof of social health insurance, a medical certificate, and a receipt for the residence permit fee.
The process of investing in Romania is made easier through this comprehensive guide, which also showcases the government’s favorable attitude towards foreign investments. This promotes a wide variety of global business opportunities.
Get in touch with us to make your goals a reality – we are here to assist you. Contact Freddy Jacobs at +32 478 331 799, or connect with us on Linkedin.
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