As part of the European Union, Romania stands for an incredible market opportunity in terms of size (the 9th in EU28) and population (the 7th in EU28), offering investors a high market potential as the second largest country in Central and Eastern Europe and the largest in SEE. Following the country’s EU accession in 2007, investors here find themselves within a single market of 500 million consumers, as one of the largest in the world, providing enormous advantages for companies seeking new markets for development and growth. Moreover, EU membership makes it also eligible for over EUR 40 bill in EU grant funding. Besides its belonging to the great European family, Romania enjoys yet another significant international affiliation- NATO membership – standing as a pillar of strength in maintaining stability and security in the region. 

Over the years Romania has been able to cash-in on its geo-strategic location, as positioned at the crossroads of three great markets: the European Union, the CIS states and the Middle East, being crossed by three important pan-European transportation corridors: no. 4 linking Europe from West to East, no. 9 from North to South and no. 7, facilitating inland water transportation on the Danube. Furthermore, while remaining a strategic partner for the U.S., as the Eastern frontier of the Euro-Atlantic structure and a major geopolitical actor on the Black Sea the country is part of the Belt and Road initiative and will play a key role  within this massive infrastructure development project and grand design. Romania owns 1/3 of the Danube River, also standing as the most significant gateway to the Black Sea through Constanta Port, the largest and deepest port at the Black Sea (with a 6 days time saving competitive advantage against the biggest European port, Rotterdam, as concerns Asian goods transportation by sea). The country is also rich in natural resources, some of its most important ones being the agricultural land and significant mineral deposits (e.g.: petroleum, natural gas, salt, coal, gold etc.). 

Romania has a cost – effective business environment enjoying the 4th lowest gas prices and the 6th lowest electricity prices in the EU and one of the fastest internet in the world, enjoying great broadband infrastructure. A significant network of 84 industrial parks spread across the country with both private and public ownership, brings to investor’s fingertips suitable locations with access to utilities & benefit packages according to their focus, for successful project implementation. Another “pro” for taking upon the country resides in its extensively creative potential of highly skilled workforce at competitive prices, (third lowest minimum wage in EU) enjoying reduced cultural and language barriers. Born at the crossroads of different cultures and civilizations, where East meets West, Romanians are multilingual, flexible, innovative and future oriented offering a multitude of qualities at outstanding prices, as investors can enjoy a skilled workforce at a fraction of its worth. 

The entrepreneurs that decide to take upon Romania are having at their fingertips an enormous reservoir of educated talent, winning kudos in the international professional arena. Over the years, this country has nurtured outstanding performances in terms of global recognition, profiling itself as an international talent exporter, feeding some of the world’s most prestigious players in all fields of activity. Thus, today Romania is a country of quality that in the past few years has succeeded in moving forward the value chain, as some of the investors that entered the market over ten years ago with basic manufacturing are now branching out into more technologically sophisticated projects. 

Fiscal Incentives  

GENERAL –  0% profit tax for the reinvested profit in new technological equipment used for business purposes 

IT&C – 0 % income tax for employees hired as software developers

 R&D –  0% income tax for employees hired in Research & Development companies  0% income tax for R&D companies for the first 10 years  Specific deduction in case of R&D eligible expenses:  Accelerated depreciation of R&D equipment  Additional deduction in value of 50% of R&D expenses can be deducted from the taxable income. If a loss is made this can be carried forward

INDUSTRIAL PARKS – Investors that set up manufacturing locations or offices in an industrial, scientific or technological park benefit from:  Exemption on land, building and urban planning tax  Exemption for taxes charged for changing land destination 

Sectors 

ICT – Technology is considered a primary growth driver for Romania. The IT&C services sector is forecasted to reach EUR 6.3bn. by 2020.  Global software companies such as Oracle, Amazon, IBM or Deutsche Bank already leverage the development potential of Romanian software developers at a fraction of the cost compared to Western Europe, while maintaining the product quality. They have also contributed to the initial development of the tech start-up environment that is developing today.  Today, Romania is one of the leading countries in the region not only for IT&C development, but also for SSC & BPO. Over the last 2 years, names like London Stock Exchange Group, Viavi, Huawei, Capgemini, Samsung, Amazon, Accenture have opened Centers in Romania, either for R&D, Business Services, Logistic or others.

Automotive  – The Romanian automotive market has been growing by 18% year-on-year average since 2009 and is forecasted to exceed EUR 20 bn by 2020. It is the 4th biggest automotive manufacturer in the CEE. In the last decade more than 600 OEMs for automotive supplies opened plants in Romania following the investments of 2 big automotive manufacturers at Craiova and Mioveni. 

Invest Romania

Email: office@investromania.gov.ro 

 investromania@investromania.gov.ro