Contact details

Bucuresti-Ploiesti Street, No. 15, 4th Floor, Sector 1, Bucharest, Romania

Email: ceo@lexbm.com
Phone: 021 311 31 01

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WHY ROMANIA?

According to national strategies, Romania encourages foreign investments and takes steps to encourage the presence of foreign investors in the country. Romania places the most attractive taxation systems through the national strategy for encouraging the business environment:

  • The corporate tax rate applicable to taxable profit is 16%
  • The share of health insurance contributions is 5.5% for the individual contribution and 5.2% for the contribution due by the employer.
  • Tax rates on micro-enterprise income are 1% for micro-enterprises with one or more employees and 3% for micro-enterprises without employees.
  • The Romanian labor force is specialized and qualified.
  • Employment costs are low compared to other countries in the European Union, Romania having the lowest labor costs in EU information technology: most programmers charge a fee of less than $ 20 / hour.
  • The number of English speakers is very high, and most people know two or three foreign languages.
  • Currently, some sectors prove to be more profitable for both foreign and local investors. Among these we can mention: industry, agriculture, education, information technology (IT), tourism.




The IT industry has seen a spectacular development in recent years in Romania. The number of subscribers to mobile telephony (which also includes Internet services) is very high in Romania, and age categories are diversified.

Romania's macroeconomic situation is one of the strongest in the EU in terms of GDP growth, fiscal deficit and public debt, inflationary pressures and current account balance, positive developments expected by some rating agencies. The output gap will close in the second half of 2017, amid a strong recovery in domestic demand, particularly in the private sector. The GDP growth rate was 4.9 in 2016, the highest in the EU28, with the prospect maintaining a positive outlook.





Current forecasts predict an increase of 5.2% in 2017, according to the National Prognosis Commission, as a result of pro-growth tax policy, including tax cuts and positive economic developments in recent years.

Business confidence in Romania is at the highest level in the last 4 years, due to the prospects of robust economic growth and recovery of investment and consumption.





According to the World Bank's Doing Business Report, Romania ranks 37th in the world on the ease of business index, climbing 13 positions in 2014. The country's overall payroll rating is improving and is the second best out of the regions of the country.

From a fiscal point of view, the number of payments / year needed to meet tax obligations fell dramatically from 113 in 2012 (historical maximum) to 14 in 2016. Coupled with a tax system that is one of the most friendly in the EU, accessibility is the next step for growth.

To help entrepreneurs, the Romanian government has also simplified the process of setting up a business, reducing the time needed from 29 days in 2004 to just over a week in 2016.

In 2017, due to the national strategy for the development of the business environment, companies' registration taxes have dropped considerably.





In the short, medium and long term, the government is committed to helping developing entrepreneurs. The pro-growth policy has additional implications for the Romanian business environment, the drop in the minimum paid capital by 2.3 percentage points since 2004, reaching a historical minimum value of 0.6% of the per capita income.

- A 16% income tax exemption is available in Romania for employees working in the IT field, such as: Degree in one of 14 technical specializations available Employee is employed as a software / Engineer / programmer / software the annual income per employee must be over $ 10,000.

A deduction of 50% of the asset's tax value can be applied during the first year of use, while the remaining amount can be depreciated linearly over the expected remaining time, and accelerated depreciation may also be used for equipment and / or For research and development If a company benefits from the income tax exemption for reinvestment, it will not benefit from accelerated depreciation.

Romania has been a member of the European Union since 2007 and a member of NATO, having a strategic position on the map of Europe both for European transport and circulation, as well as for import and export. Its opening to the Black Sea offers easy access to the Middle East and its south eastern position in Europe provides easy communication with the most important countries in the European Union. In the 2014-2020 financial year, Romania benefits from a budget of over € 31 billion for ESI-funded programs (Economic, Structural and Investment). Europe 2020 is the EU's strategy for employment and growth for a ten-year period. Launched in 2010, it should create the conditions for smart, sustainable and inclusive growth. The European Union has proposed that by the end of 2020, it will meet a number of objectives in five key areas: employment, research and development, energy / climate, education, social inclusion and poverty reduction. The European Fund for Strategic Investments is essentially a € 21 billion risk management instrument designed to help and facilitate investment in already existing capital funds in high-risk projects. Strategy developed by the European Commission together with the European Investment Bank. The primary goal is to mobilize at least EUR 315 billion in investment.

Support through EIAH and EIPP the investment plan for Europe aims to help project promoters develop the financing application through the European Investment Advisory Center. In addition, IPE has also built a European investment project portal. Improving environmental regulation, one of the Commission's current priorities seems to be to identify and eliminate regulatory bottlenecks that slow investment.

KEY SECTORS : Strategic Infrastructure including Digital, Transport and Energy Expanding Renewable Energy and Resource Efficiency, Environmental Projects, Urban and Social Development Education and Training, Research, Development and Innovation, Support for Small and Medium Enterprises), Real estate development.