Romanian Residency

Romania, a European Union (EU) member, offers an attractive path to EU residency and citizenship for investors and entrepreneurs. Its residency options come with numerous benefits, including favorable tax rates, potential for citizenship, and access to the Schengen Area. 

In this comprehensive guide, we will explore the Romanian residency programs, eligibility criteria, and the advantages of making Romania your European home.When planning a trip to Romania, it's crucial to understand that you will need a Romanian visa for your visit.

Why Choose Romania?

Romania is emerging as an enticing destination for investors and entrepreneurs seeking temporary residence in a European Union country. Several compelling factors make Romania an attractive choice:

1. Tax-Friendly Environment

Romania stands out for its business-friendly tax regime, particularly for micro-enterprises. 

These companies enjoy low corporate tax rates ranging from 1% to 3%, making it an appealing destination for businesses looking to optimize their tax liabilities within the EU.

2. High-Speed Internet

Surprisingly, Romania boasts some of the fastest internet speeds in Europe, outpacing more economically developed countries like Austria, Germany, and Switzerland. This robust digital infrastructure is a boon for businesses and remote workers.

Romanian Residency Programs

Romania offers two main pathways to obtain residency, each tailored to different investment levels and objectives.

1. Romania Residence Permit for Business Directors

Program Overview:

• Validity: One year, renewable.
• Initial Investment: €50,000.
• Minimum Monthly Income: €500.

Requirements:

• Invest €50,000 in company assets, such as real estate or technology.
• Maintain a minimum monthly income of €500.
• The General Inspectorate for Immigration favors investments in real estate and technology.

2. Romania Residence Permit for Business Shareholders

Program Overview:

• Validity: One year, renewable.

• Investment Options:

• €50,000 in a limited liability company.
• €70,000 in a joint-stock company.

Requirements:

• Maintain the initial investment.
• Create 10 full-time jobs for limited liability company shareholders or 15 full-time jobs for joint-stock company shareholders.
• Demonstrate means of subsistence (€500/month for limited liability company shareholders or €700/month for joint-stock company shareholders).

Exemptions for Certain Nationalities:

• Citizens of the US, Canada, Japan, or Switzerland are exempt from investment, job creation, and means of subsistence requirements. 
• However, they must still become shareholders in a Romanian company, provide proof of accommodation, and pass medical checks to obtain a temporary residence permit.

Benefits of Significant Investments

• Investments exceeding €500,000 or the creation of more than 50 full-time jobs extend the temporary residence permit to three years.
• An investment of €1,000,000 or the creation of a minimum of 100 full-time jobs qualifies for a permanent residence permit.

Required Documents for Romanian Residence Permits

When applying for a Romanian residence permit, ensure you have the following documents:

• Valid travel document (passport).
• Proof of company or share ownership.
• Legal proof of accommodation.
• Evidence of sufficient financial means.
• Proof of social health insurance.
• Medical certificate.
• Proof of payment for the residence permit fee.

The Advantages of Romanian Residency

Opting for Romanian residency comes with several compelling benefits:

1. Favorable Tax Rates

Microenterprises with up to €1,000,000 in annual turnover benefit from corporate tax rates as low as 1% (with one full-time employee) or 3% (with no employees), providing significant tax advantages for businesses.

2. Path to Citizenship

Holding a long-term residence permit allows you to pursue Romanian citizenship within four to eight years, depending on your circumstances. The standard period for citizenship eligibility is eight years.

3. Schengen Zone Prospects

While Romania is not yet part of the Schengen Area, there are expectations that it may join in the future. This development would further enhance your travel opportunities within Europe.

4. No Yearly Renewals

Permanent residence permits, issued for five years, eliminate the need for annual renewals, providing stability and peace of mind for residents.

5. Family Inclusion

The family members of the principal applicant are also eligible for long-term residence permits, allowing you to relocate your entire family to Romania.

Conclusion

Choosing Romanian residency offers an attractive opportunity to establish a foothold in the EU, benefit from favorable tax rates, and potentially obtain Romanian citizenship. 

With minimal physical presence requirements, it's a practical option for investors and entrepreneurs seeking to thrive in a business-friendly EU jurisdiction.

If you're considering Romanian residency and want personalized guidance tailored to your unique circumstances, consult experts specializing in offshore strategies for high-net-worth individuals and entrepreneurs. 

They can help you navigate the process and ensure you make the most of your Romanian residency journey.