Romania has recently made significant changes to its foreign direct investment (FDI) regulations, with new legislation implemented in 2022.
This guide provides an overview of the updated FDI regulations in Romania and highlights the opportunities for foreign investors and tourists interested in exploring this Eastern European nation. When planning a trip to Romania, it's essential to be aware that obtaining a Romanian visa will be necessary for your journey.
In April 2022, Romania enacted new legislation aimed at implementing European Regulation 2019/452 regarding the screening of foreign direct investments into the European Union.
This legislation, represented by Government Emergency Ordinance no. 46/2022 (GEO 46/2022), introduces several important concepts and regulations related to foreign investment in Romania.
Foreign direct investment is defined in GEO 46/2022 as an investment that meets the following criteria:
The scope of FDI includes both direct and indirect changes of control in the ownership of the foreign investor.
Even changes in control occurring outside Romania, such as a change in the parent company of the foreign investor, fall under FDI review if the new parent company qualifies as a foreign investor.
GEO 46/2022 defines "new investments" as initial investments in tangible and intangible assets located within the same perimeter, related to:
To examine and approve FDIs, Romania has established the Commission for Examination of Foreign Direct Investments (CEISD), which replaces the previous process involving the Competition Council.
The principle is that foreign investors are responsible for filing FDI applications in Romania. In the case of mergers or other transactions, the merging parties or acquiring parties must file the application.
A foreign investor is defined as:
Please note that there is a draft law intended to expand the definition of foreign investors to include EU investors.
FDI filing is mandatory for investments that:
Fields relevant to national security include:
Portfolio investments are exempt from examination and approval.
As per GEO 46/2022, the FDI review process follows these timelines:
Foreign investors can protect themselves by:
Romania offers an enticing pathway for investors to call it home through its Residency by Investment Program. This program has been gaining prominence and provides numerous benefits for global entrepreneurs and investors.
Romania is not only known for its natural beauty but also for its rapid economic growth and untapped potential. With a skilled workforce and a strategic location bridging East and West, Romania offers a competitive edge in various sectors, including technology and manufacturing.
To obtain residency in Romania, there are two primary avenues:
Requirements for Company Directors include a guaranteed minimum monthly income of €500 and an initial €50,000 investment in real estate or technological assets of the company.
Requirements for Company Shareholders include an investment of €50,000 (limited liability) or €70,000 (joint-stock), job creation, and proof of sustenance.
Investors making substantial commitments in Romania can enjoy extended residency and even a pathway to permanent residence.
Upon obtaining permanent residence, individuals can pursue Romanian citizenship.
Applicants for Romanian residency must provide a comprehensive set of documents, including:
While Romania does not offer direct citizenship-by-investment, investors can gradually attain Romanian citizenship by participating in the residency by investment program.
Language proficiency in Romanian is pivotal for obtaining permanent residence.
Romania presents compelling opportunities for global investors and entrepreneurs. Its Residency by Investment Program offers multiple pathways to residency, and substantial investments can lead to extended stays and even Romanian citizenship.
With a transparent application process and a range of benefits, Romania encourages beneficial economic partnerships and long-term commitments.
Whether you are considering investing, conducting business, or exploring this European hub, understanding and fulfilling the Romanian residency criteria is your ticket to a promising venture.
Answer: The Romanian Residency by Investment program is a pathway for foreign nationals to obtain a residence permit in Romania by making a significant contribution or investment in the country's economy. This program can ultimately lead the investor towards Romanian citizenship.
Answer: Foreign nationals can apply based on their role in a company, either as shareholders or associates engaging in significant economic or commercial activities. These roles should align with the activities they will undertake in Romania for the year.
Answer: The program necessitates different minimum investments depending on your role. As a company director, €50,000 is the minimum investment, primarily in real estate or technologies. Shareholders in a limited liability company must invest €50,000, whereas for a joint-stock company, it's €70,000.
Answer: Yes, family members of the primary investor can also be included, and they too can journey towards becoming a Romanian citizen after fulfilling the required residency conditions.
Answer: After obtaining the residence permit, one has to stay as a temporary resident for five years, followed by three years as a permanent resident. Subsequently, they can apply for Romanian citizenship.
Answer: For a permanent residence permit, demonstrating a sufficient knowledge of the Romanian language is essential. It further strengthens the application when progressing towards becoming a Romanian citizen.
Answer: The program primarily focuses on residency and citizenship pathways. However, specific business-related benefits, including corporate tax exemption, depend on individual business cases and the region of investment.
Answer: These specific foreign nationals have some exemptions from the standard requirements for investment, job creation, and means of subsistence. However, they still need to become shareholders or associates in a Romanian company, ensure their accommodation, and undergo medical checks to have the residence permit obtained.
Answer: No, the initial residence permit lasts for one year, but it can be renewed annually, ensuring the continuation of the minimum investment and other requirements within the company.