FAQ

Last update: August, 2010

1. What markets can I have access to if investing in Romania?

Taking upon Romania means investors gaining access at the same time to the EU internal market and Romania’s significant domestic market opportunities, our country being strategically positioned at the cross roads of the traditional, commercial and energy routes connecting EU-27, Asia and the Balkans. Romania has the biggest internal market in South-Eastern Europe, the second largest in Central and South - Eastern Europe, ranking 7th in the EU, with a population of 21.6 million inhabitants.

2. What were the GDP growth and the levels of inflation and unemployment rates in 2008?

Considering the international economic framework characterized by the biggest economic crisis from the last 60 years, Romania was not the exception from the general rule regarding the economic growth rate decrease (-7.1% in 2009) and higher unemployment (7.8% in 2009). Inflation continued the descending trend registering 5.6% last year. An economic growth rate of 1.7- 1.9 % and inflation rate of 3.5% are foreseen for 2010

Source: NBR, NIS

3. What is the level of the corporate tax?

Romania has a 16% flat tax, one of the lowest levels employed by countries in CEE

4. What is the VAT level?

Romania has a 24% VAT standard rate and a 9% reduced rate applicable to the supplies of certain goods/services as provided by the Romanian Fiscal Code

5. What is the minimum gross monthly wage in Romania?

For 2010, the average gross wage per month in Romania is 1836 RON (approx. EUR 442), as according to Law No. 12/2010 regarding the state social insurance budget.

6. What is the average number of students in Romania?

There are approximately 717 thousand students in Romania, enrolled in 160 higher education institutions
Source: National Institute for Statistics

7. What was the FDI evolution for the past years and what is Romania’s position within the region?

Romania continues to be the first FDI recipient in South Eastern Europe, receiving high rates of FDI, as revealed by national banks reported figures. In a recent report of Merrill Lynch, Romania is seen in the next years as the most attractive country for foreign investors among European emerging states, Middle East and Africa, due to an average 4.4% economic growth in 2010-2019 and competitive production costs.

Source: National Bank of Romania
 

8. What is the sector attracting most inward FDI and why?

The sector attracting highest rates of FDI is industry, due to lower level of land price against other countries within the region, skilled labor force at competitive prices, as well as availability of the production capacities and tradition within the sector.

9. What incentives are provided for direct investments?

Romania currently provides: carrying forward fiscal losses, accelerated depreciation, local taxes incentives, subsidies on the unemployment insurance system and employment stimulation investment, incentives for economic growth support. Other financial incentives are provided by several state aid schemes.

10.   What are the main advantages an industrial park can offer?

The main advantages offered by an industrial park are: possibility to implement Greenfield and Brownfield projects; access to utilities; package of services offered by the park administration; exemption from paying land and building taxes.