The Foreign Investor's Guide to Setting Up in Romania

Romania has emerged as one of the most attractive destinations for foreign direct investment in Central and Eastern Europe. EU membership since 2007, a young and educated workforce, competitive costs, and a growing domestic market make it a compelling choice for investors from across Europe, the Middle East, and beyond.

But setting up in a new country is never without complexity. This guide covers what you genuinely need to know before you commit — and what to do once you have.

Before diving into process, it's worth understanding why Romania attracts the investors it does.

EU membership and market access. As a full EU member, Romania provides access to the European single market — free movement of goods, services, capital, and people. For businesses serving European customers or sourcing from European suppliers, this is a significant structural advantage.

Competitive tax environment. Romania's 16% flat corporate income tax rate is among the lowest in the EU. The microenterprise regime (1% of revenue for qualifying small companies) makes it even more attractive for early-stage businesses.

Labour costs and quality. Romania has a well-educated workforce, particularly in engineering, IT, and finance. Labour costs remain significantly below Western European levels, though they have risen steadily over the past decade.

Strategic location. Bucharest sits at the crossroads of Central, Eastern, and Southern Europe, with strong transport links to major EU markets and proximity to the Middle East and North Africa.

Growing domestic market. Romania's population of approximately 19 million and its expanding middle class represent a meaningful domestic consumer market, particularly in retail, food and beverage, healthcare, and technology.

Romania's legal framework is broadly open to foreign investment. There are no general restrictions on foreign ownership of Romanian companies — a foreign national or foreign company can own 100% of a Romanian SRL (limited liability company) or SA (joint-stock company).

Key legislation:

• Law 31/1990 — the Companies Law, governing company formation and operation
• Law 227/2015 — the Fiscal Code, governing taxation
• Law 53/2003 — the Labour Code, governing employment
• Government Ordinance 92/2021 — investment incentives and state aid framework

Romania is also party to over 80 bilateral investment treaties and double taxation agreements, providing legal protections and tax efficiency for investors from most major economies.

Romania offers several incentive schemes for qualifying investments:

State aid for large investments. Companies investing above certain thresholds (typically €1 million or more) in eligible sectors and regions may qualify for state aid grants covering a percentage of eligible costs. The scheme is administered by the Ministry of Economy.

R&D tax deductions. Companies conducting qualifying research and development activities can deduct 150% of eligible R&D expenses for corporate income tax purposes.

IT sector exemptions. Employees working in qualifying IT roles are exempt from income tax on their salaries — a significant incentive for technology companies.

Free trade zones. Romania has several free trade zones offering customs and tax advantages for manufacturing and logistics operations.

EU structural funds. As an EU member, Romania receives substantial structural and cohesion funds that can be accessed by qualifying businesses for investment, training, and innovation projects.

For investors and executives who want to be physically present in Romania, the residency and work permit framework is important to understand.

EU/EEA nationals can live and work in Romania without restriction. They must register their residence with local authorities if staying longer than three months.

Non-EU nationals require a work permit and residence permit. The process involves:

1. Obtaining a long-stay visa (type D) from a Romanian consulate in your home country
2. Applying for a work permit through the General Inspectorate for Immigration
3. Applying for a temporary residence permit once in Romania

For company directors and shareholders who are not employees, a different route — the "investor" or "business person" residence permit — may be available.

Processing times vary, but the full process typically takes 2–4 months. Starting early is essential.

Opening a business bank account in Romania is straightforward for most investors, though the process has become more rigorous due to anti-money-laundering requirements.

Most major Romanian banks (BCR, BRD, Raiffeisen, ING, UniCredit) offer business accounts with online banking and international transfer capabilities. Some have English-language services.

What you'll typically need:

• Company registration documents (CUI, constitutive act)
• Shareholder and administrator identity documents
• Proof of address
• Business plan or description of activities (for some banks)
• Source of funds documentation (for significant initial deposits)

Allow 2–4 weeks for account opening, and be prepared for detailed KYC (Know Your Customer) questions.

No market entry guide would be complete without an honest assessment of the challenges.

Language. Romanian is the official language, and most official documents, contracts, and regulatory filings are in Romanian. English proficiency is high among business professionals in Bucharest, but lower in regional cities and among government officials. Professional translation and local representation are essential.

Bureaucracy. Romania's administrative processes can be slow and paper-heavy. Timelines are often longer than officially stated. Building in buffer time and working with experienced local partners significantly reduces friction.

Regulatory changes. Romanian tax and business law changes frequently — sometimes with limited notice. Staying current requires active monitoring or a reliable local advisor.

Finding reliable local partners. Romania has a strong business community, but due diligence on local partners, suppliers, and employees is important. References, background checks, and properly drafted contracts are not optional.

Cultural differences. Business culture in Romania tends to be relationship-driven. Building trust takes time, and decisions often move more slowly than investors from more transactional cultures expect. Patience and personal engagement pay dividends.

If you're seriously considering Romania as your next market, here is a practical sequence:

1. Define your structure. What legal entity do you need? Will you have employees? Do you need a physical office?
2. Assess your tax position. How will your Romanian entity interact with your existing group structure? What are the transfer pricing implications?
3. Understand your residency requirements. Will you or your team need to be physically present? What permits are required?
4. Engage local expertise early. A good local consultancy will save you time, money, and frustration — and will flag issues you haven't thought of yet.
5. Plan your timeline realistically. From first decision to operational company typically takes 2–3 months for a straightforward setup. Complex structures take longer.

At Mariner Pro, we work with foreign investors at every stage of this journey — from initial feasibility through to ongoing operations. Our team combines deep local knowledge with the professional standards that international clients expect.

Considering Romania for your next investment? Book a free consultation with our team — we'll give you an honest assessment of what's involved.