10 reasons why to Set up a company in Romania
There are so many reasons for someone to set up a company in Romania! Ηere you can find 10 advantages among others that make Romania a destination that it is difficult to pass by:
1. One of the lowest taxations in Europe!
Romania uses two schemes to tax companies:
A. “Micro-companies” (with turnover up to 1.000.000 Euros, no matter what is their sector of activity) pay 1% or 3% on their income. (1% if they hire an employee, 3% if don’t hire)
B. Companies with turnover of over 1.000.000 Euros pay 16% on their profits.
C. Divident tax is 5%
Private persons pay 10% on their income, again a flat tax.
Nothing more, no advance payments, obligatory social security taxes etc.
2. Fiscal stability
- The tax on profit remains unchanged since 1st of January, 2005.
- The tax for microcompanies remains very low since 1st of January, 2009.
3. Flexibility on company owning
- You can have a company in Romania being the sole shareholder.
- Since July 2020, you can even have more than one companies while being the sole shareholder,
- You obviously don’t need to have a local citizen as partner.
- There are plenty of other measures that encourage business activity and offer flexibility to the business owners.
- You can receive dividends every 3 months.
- In case you wish NOT to receive dividends for a longer period or forever, this is also an option that you can take without any fiscal implications.
- There are plenty of other measures that encourage business activity and offer flexibility to the business owners.
4. Very solid banking sector
Romania is a country with a healthy banking sector. Its NPL rate is among the lowest in Europe, while the deposits of the citizens are significantly higher (almost +50%) than the loans being lended.
Having the oldest Governor of the Central Bank in the world, the excellent Mugur Isarescu, the country’s banking sector offers a solid business environment, without the risk of negative surprises.
5. The fastest internet in Europe + good urban infrastructure
Romania is usually mentioned as the country with the fastest internet speed in Europe, one of the top three countries in the world! At the same time, its cities have good urban infrastructure, parks and several other points of attraction.
Tens of thousands of expats living in the bigger cities of Romania can confirm to you this fact.
6. An interesting, vivid society, with open minded, multi-lingual and technology adept citizens in their majority
Not by coincidence, most successful tech applications find early success and adoption in Romania! 51% of Romania’s economy is controlled by foreigners, a clear sign that this is an open country, where almost anyone serious can have good chances of success.
The rise of a new social class, the middle – upper one, has brought to the spotlight a new generation of open minded, multi-lingual persons, whose majority excels in their goals.
7. Flexible urbanism
If you are interested in opening a production facility, or invest in Real Estate, you will soon realize that Romania is quite flexible when it comes to urbanism. If you have good consultants by your side, you will easily benefit from the various existing advantages for investors and, by respecting the law, you will be able to advance in your investment without being blocked for long periods of time.
8. Still a lot to be made
While in some sectors Romania is in the leading countries of Europe, there are plenty of other sectors where there is room for improvement. Its highways will be built during the following 20 years, the infrastructure for water supply, sewerage, irrigation and environment will also receive a major investment boost. The same stands for digitalization, public education and healthcare and more.
Romania will continue growing for the years to come.
9. Circa 80 billion Euros dedicated by the EU for the period 2020 – 2026
The EU grants for the period 2020 – 2026 plus the package agreed for Romania due to coronavirus pandemic total circa 80 billion Euros. This amount is expected to boost investments in almost every sector of the Romanian economy and help it increase new levels of productivity and efficiency.
10. A country with strong growth potential / increased disposable income
In the period of 2014 – 2019 Romania was one of the leading countries in Europe in terms of GDP growth. Before coronavirus, it was set to repeat in 2020. With strong industrial, Automotive, ITC, Agricultural and other sectors, Romania is going to be one of the countries with the earliest recovery in the years to come!
In the same time the citizens of Bucharest have disposable income which ranks them to the 160% of the European average (according to Eurostat). Romania as a country is still at the range of 72% in this subject. In the same time there are more Romanian cities which follow the example of the capital, having citizens with disposable income around 80 – 100% of the European average. Consumption is strong and it is getting stronger year after year (among the top countries in Europe in consumption increase during the last 6 years).
Romania is not a paradise, there are problems here like in every other country! But in the same time someone serious and hardworking, with the right guidance, can easily build in Romania his next success story!
Set up now your company in Romania and start your new success story!
