Top 50 questions adressed to Foreign Investors from Romania

In the context of increasing interest among foreign investors in opportunities in Romania, the Romanian Agency for Investment and Foreign Trade (ARICE) through Moldova Invest provided answers to the 50 most frequently asked questions by foreign investors.

Romania is internationally known as a profitable business destination, ensuring competitive profit margins.

INVESTMENT CLIMATE

1. What is the political situation? Is there stability? Do governments change frequently? If so, how often and with what type of predictability or disruption? Do policies change along with changes in governments?

In Romania, there is currently political stability and economic predictability, vital factors for the development of medium and long-term investment projects. The current coalition and the prospects of the same governance formula in the future represent a guarantee of continuity in public policies and the maintenance of the predictability and stability demanded by both domestic and international business representatives.

2. What is the current administration’s attitude towards the following aspects: private enterprises and privatization/foreign investment/foreigners? Are foreigners treated differently from local investors?

In Romania, the current administration presents a favorable attitude towards private enterprises and foreign investments, recognizing their importance for the country’s economic development. A favorable business environment is promoted through tax incentives and reducing bureaucracy to attract foreign investors and stimulate economic growth.

The current Romanian legislation provides the same treatment to foreign and domestic investors, with Romania currently having a competitive, friendly business environment that supports the development of investment projects with high added value, significant both in terms of value and job creation.

3. Are there many foreign investments? Who has already invested in your country? Who else is considering investments?

In Romania, there is a significant level of foreign investment, covering a wide range of economic sectors such as industry, information technology, infrastructure, renewable energy, and the financial sector. Among the important foreign investors are companies from European Union member states, the United States of America, China, and other Asian countries.

Additionally, there is increased interest from global investors in technology and innovation, infrastructure, and energy sectors. Romania’s economic potential and its strategic position in Europe have attracted the attention of major international investors, and the prospects for growth and modernization continue to generate interest in attracting new foreign investments.

Romania is internationally known as a profitable business destination, ensuring competitive profit margins. The choice of Romania by some of the world’s most important investors who have turned opportunities into success stories and true landmarks for foreign investments in our country is solid evidence that Romania is undoubtedly a trusted partner for entrepreneurs worldwide.

Successful projects such as RTR Renault Technologie Roumanie, Saint Gobain, Daimler, Bosch, Continental, Yazaki, Calsonic Kansei, Makita, Procter&Gamble, Honeywell, Lufkin, IBM, Microsoft, Intel, SAP, Lafarge, Pirelli, Siemens, Michelin, Ford, or London Stock Exchange have been part of the Foreign Investment portfolio over time.

According to data provided by the National Bank of Romania, in recent years, foreign direct investments in the post-pandemic years have shown an upward trend: 2021 – 8.9 billion euros, 2022 – 10 billion euros, marking the highest FDI value recorded since the revolution (since 1990). In 2022, Romania ranked 6th in the EU in terms of FDI infl ows and 16th in terms of FDI stock.

Regarding potential investment projects in the ARICE portfolio, due to confidentiality reasons, we cannot disclose information about them.

4. How is the local private sector treated, and is it consulted by the government in shaping economic policy? Is it open to doing business with foreigners?

In Romania, the local private sector is considered and treated as an important player in the economy and is consulted by the government in shaping economic policy. The government aims to create a favorable business environment that encourages the development of local enterprises and stimulates foreign investment.

The private sector has significant involvement in the economy and is open to doing business with foreign investors, benefiting from tax incentives and other support measures. There is ongoing dialogue between the government and the private sector regarding the formulation of economic policies and the promotion of a healthy and competitive business climate.

5. Does your country have a double taxation avoidance treaty and an investment treaty with mine? Is there any special trade arrangement (automatic visas, preferential trade privileges)? Do our respective embassies, in your country and mine, provide support to business people?

Romania has double taxation avoidance treaties and investment treaties with several countries, including yours. These agreements facilitate trade and investment between the involved countries, providing clarity on taxes and investment protection.

Additionally, depending on bilateral relations, special trade arrangements such as automatic visas or preferential trade privileges may exist between the two countries. The embassies of Romania and, respectively, your country often provide support and assistance to business people to navigate the foreign business environment and facilitate commercial and investment ties between the two states.

6. How cordial are the relations between our governments? Are there any ongoing political or trade disputes? How large is my country’s community in your country and the general expatriate population?

The relations between the governments of Romania and your country are excellent, with sustained joint eff orts to promote cooperation in various areas, including economy, culture, and education. The community of your country’s citizens in Romania is diverse but significant in certain fields, such as education and business. Romania also hosts a diverse population of expatriates from around the world, contributing to the country’s social and economic diversity and dynamism.

RIGHTS AND OBLIGATIONS OF INVESTORS

7. What forms of corporate organization are possibile?

In Romania, there are several possible forms of corporate organization for businesses, including:

• joint-stock company (SA),
• limited liability company (SRL),
• sole proprietorship (II),
• family enterprise,
• general partnership (SNC),
• limited partnership (SCS).

Each form has advantages and disadvantages depending on the specific needs and objectives of the business, as well as legal and tax considerations. Generally, SRL and SA are the most popular forms of corporate organization among small and medium-sized businesses, due to their flexible structure and the degree of personal asset protection for owners.

8. Can I own land / real estate? If yes, how are my property rights protected?

Citizens of the EU and companies registered in our country can own land and real estate in Romania, with some specific restrictions, such as the areas where they can purchase properties and the maximum allowed surface. Property rights are protected by law and state institutions, and foreign investors enjoy the same rights and protections as Romanian citizens.

These protections include the right to private property, guaranteed by the Constitution of Romania, and access to the judicial system for resolving property-related disputes. However, it is recommended to seek legal assistance to properly understand all legal aspects and procedures involved in acquiring and holding properties in Romania.

9. Are there any limitations on foreign investment entry?

In Romania, there is generally a favorable environment for foreign investment, and the legislation allows their participation in various sectors of the economy. However, in some strategic areas such as national security, defense, and energy, there may be restrictions or specific conditions for foreign investors.

Additionally, certain authorization and approval requirements may be imposed on foreign investments in certain sectors, and compliance with these requirements is important to avoid delays or issues in the investment process.

10. Are there any special requirements/limitations regarding foreign capital ownership? Is it necessary to have a local partner?

There are no specific requirements or limitations regarding foreign capital ownership in businesses, and foreign investors have the right to own 100% of the shares or social parts of a company. Involving a local partner is not mandatory in a business, except in specific areas where the law may impose certain restrictions or requirements. However, in some cases, collaborating with local partners can be beneficial to gain local knowledge and navigate the business environment in Romania more easily.

11. Are there requirements for notification, registration, approval, or authorization of foreign investments? If yes, how complex are these? How long does it take from start to finish? Is there a single point of contact to help me comply with the procedures?

In Romania, foreign investments may be subject to notification, registration, or approval requirements under certain circumstances, especially in sensitive or strategic sectors. The procedures can vary in complexity depending on the nature and size of the investment but generally may involve submitting documents and requests to various relevant government authorities.

The duration of the entire process can vary, depending on the nature of the investment, compliance with all legal requirements, and the time taken to obtain the necessary approvals. In some cases, authorities may provide a single point of contact for assistance and guidance regarding the procedures.

Regarding investments in sensitive or strategic sectors, these are subject to review by the Commission for the Examination of Foreign Direct Investments. It evaluates operations involving the acquisition of control over companies or assets that pose risks to national security, as well as economic concentration operations notified to the Competition Council, which may be analyzed from the perspective of national security.

12. Does your country allow for the free conversion and repatriation of funds (capital, profits, royalties, and fees)? 

Yes, in Romania, there are various special incentives available for certain investments, which can vary depending on the economic sector and location. These incentives may include tax breaks, subsidies or grants, exemptions from fees and taxes, land at reduced prices, or other forms of financial or logistical support. Foreign investors have the right to transfer capital and repatriate profits from Romania without major restrictions.

This process is usually straightforward and does not involve special authorizations, provided that all taxes and fees are paid in accordance with Romanian law. However, it is advisable for investors to be aware of tax regulations and applicable banking procedures to ensure an efficient and legal process of fund conversion and repatriation.

13. Are there any special incentives available for certain investments?

Yes, in Romania, there are various special incentives available for certain investments, which can vary depending on the economic sector and location. These incentives may include:

• tax breaks,
• subsidies or grants,
• exemptions from fees and taxes,
• land at reduced prices,
• other forms of financial or logistical support.

The Romanian government may grant these incentives to promote economic development in specific regions or industries, as well as to attract investments in areas considered strategically important or of national significance. It is advisable for investors to reach out to local authorities or investment promotion agencies to learn more about available incentives and eligibility for them.

14. Can foreign investors access local credit and financing? 

Yes, foreign investors can access local credit and financing in Romania, both from local financial institutions and from international financial institutions operating in the country. There is a wide range of financing products available, including bank loans, lines of credit, leasing, factoring, and other financial instruments, which can be used to support investments and business development.

The procedures for obtaining credit and eligibility criteria may vary depending on the financial institution and the nature of the investment, but generally, foreign investors have access to the same services and financial products as locals. It is advisable to consult with local banks or financial advisors to identify the most suitable financing solution for the specific needs of the investment.

15. Are there any other specific operational requirements – technology formation and transfer, for example? 

In Romania, there are no specific operational requirements regarding technology formation and transfer for foreign investors. However, in some cases, technology transfer may be part of a contractual agreement between parties and may be regulated by the respective terms and conditions.

Generally, foreign investors are encouraged to bring new technologies and knowledge into the country, and the government may provide support and facilities for these purposes. However, it is advisable to consult with specialized lawyers or business consultants to ensure that all legal and contractual aspects regarding technology transfer are respected.

16. Is there a collection of laws applicable to foreign investors, in the main languages of international business?

The legislation governing foreign investments in Romania is primarily available in the Romanian language. However, there are resources and services available that off er translations or summaries of relevant legislation for foreign investors.

The Romanian Agency for Foreign Investments and External Trade (ARICE), as well as specialized law firms and consultancy firms, can provide assistance and information about the legal framework applicable to foreign investments in Romania, including translations of relevant legislation into internationally recognized languages such as English, French, or German.

OPERATIONAL CONDITIONS

17. How is your commercial regime? Are there conditions, restrictions, or requirements regarding import and/or export?

In Romania, the commercial regime is generally open, with relatively few restrictions or requirements regarding import and export. However, there are customs rules and duties that apply depending on the nature of the goods and the country of origin or destination.

Additionally, there are specific norms and regulations in certain areas, such as food, health, and safety, that must be adhered to in order to import or export certain products.

18. Does your country have a regime for the protection of industrial and intellectual property rights (e.g., patents, trademarks)?

Certainly, there is a regime for the protection of industrial and intellectual property rights. This regime includes the protection of patents, trademarks, copyrights, and other intellectual properties. Competent authorities, such as the State Office for Inventions and Trademarks or the Romanian Copyright Office, manage the registration and protection of these rights.

19. Are there conditions, restrictions, or requirements (e.g., for work permits) regarding the use of foreign personnel?

The use of foreign personnel in Romania is subject to specific requirements and restrictions. To work in Romania, foreign citizens must obtain work and residence permits in accordance with Romanian immigration and labor laws.

20. Do you have a minimum wage policy or restrictive labor regulations? Are labor disputes or strikes common? What is the power of the trade union movement?

In Romania, there is a minimum wage policy set by the government and periodically revised based on infl ation and other economic factors (the minimum gross national monthly salary guaranteed in payment was increased to 3300 lei in October 2023 – approximately 664 euros). Romania has the second lowest minimum wage in the EU.

From the perspective of foreign direct investment, labor union movements have not thus far aff ected the investment process of major international companies that have chosen Romania.

21. What is the average hourly wage rate?

The average hourly wage rate in Romania varies depending on the sector and region where it is applied. Generally, the minimum hourly wage is set by the government and may diff er based on the industry.

According to Eurostat, in 2023, the average gross hourly wage in Romania was 11 euros, the second lowest after Bulgaria (9.3 euros), and 2.9 times lower than the EU 27 average (31.8 euros).

22. Is there any special sectoral policy for the sector I am interested in?

There are some special sectoral policies, which may include tax incentives, subsidies, or other incentives for certain industries or regions, aimed at promoting economic development and job creation.

The government has approved State aid scheme no.300/2024 aiming at regional development through stimulating investments with significant impact on the economy, ensuring the balance of Romania’s trade in certain sectors including:

• wood processing,
• manufacturing of wood and cork products; manufacture of paper and paper products;
• manufacture of chemicals and chemical products;
• manufacture of basic pharmaceutical products and pharmaceutical preparations;
• manufacture of metal structures and products, except machinery,
• equipment and installations;
• manufacture of computers and electronic and optical products;
• manufacture of electrical equipment;
• manufacture of motor vehicles for road transport, trailers and semi-trailers;
• manufacture of furniture;
• waste collection, treatment, and disposal;
• activities of recovery of recyclable materials.

The maximum budget of the scheme is 2,249,985 million lei, approximately equivalent to 449,997 million euros. The average annual budget of the scheme is 749,995 million lei, approximately equivalent to 149,999 million euros. The total estimated number of companies expected to benefit from state aid under the scheme is up to 150.

Investments made by companies under the scheme must meet cumulatively several eligibility criteria, including:

1. having a total value of eligible costs, excluding VAT, of at least 50 million lei, approximately equivalent to 10 million euros, and up to 500 million lei;
2. demonstrating economic efficiency and viability during the implementation of the investment and for 5 years after its completion, according to the business plan;
3. generating a quantifiable multiplier eff ect on the economy by attracting other related investments and developing local suppliers of products and services, etc

Additionally, some benefits have been established for employees in the IT, construction, agriculture, and food industry sectors. For example, IT employees engaged in computer program creation activities are exempt from tax for gross monthly incomes up to 10,000 lei inclusive

According to data provided by the Employers’ Association of the Software Industry (ANIS), more than 104,000 IT employees are exempt from income tax in Romania, but they contribute approximately twice as much to the state budget compared to the national average.

Moreover, employees in the construction sector, as well as those engaged in activities in the agriculture and food industry sectors (according to the Fiscal Code), also benefit from tax exemption for gross monthly incomes up to 10,000 lei inclusive. The part of the gross monthly income exceeding 10,000 lei does not benefit from tax incentives.

In Romania, there are international quality standards and quality control procedures applicable in various industries

23. Does your country have specific limitations regarding the environment in industrial production (waste disposal, pollution controls, etc.)?

Romania has specific regulations regarding environmental protection in industrial production. These regulations include norms for waste disposal, pollution controls, and other measures aimed at reducing the impact on the environment.

24. Are international quality standards and quality control procedures applicable in your country (e.g., ISO 9000)?

In Romania, there are international quality standards and quality control procedures applicable in various industries. The Romanian Standards Association (ASRO) implements and monitors these standards, including ISO 9000 standards, to ensure compliance and the quality of products and services provided in the country.

GOVERNMENT ADMINISTRATION, THE JUDICIAL SYSTEM, AND THE GENERAL LEGAL FRAMEWORK

25. How efficient is bureaucracy? Is  there corruption?

Currently, Romania has made significant progress in digitization and, consequently, in reducing bureaucracy (e.g., the “file with rails” law, which introduced a series of obligations for public authorities aimed at simplifying procedures in interactions with the state).

26. How does the judicial system and the courts work? Is it efficient and independent? Do they tolerate foreigners?

The judicial system and courts in Romania operate in accordance with the principles of the rule of law, and the courts are independent. Romania, as an EU member state, has transposed EU legislation into its own laws, and judges benefit from the principle of independence and immovability as a guarantee of a fair, transparent, and accessible judicial system for citizens. Everyone has the right to have their case heard fairly, publicly, and within a reasonable time by an independent and impartial court established by law.

In Romania, Romanian and foreign citizens have the right to address Romanian courts, which must provide fair and impartial treatment to all parties involved.

27. Does your country allow recourse to international arbitration?

Yes, Romania allows recourse to international arbitration for the resolution of commercial and investment disputes. Parties can agree to settle their disputes through arbitration, whether it is national or international arbitration, according to Romanian law and relevant international conventions to which Romania is a party.

28. Does the legal system provide for the recognition and enforcement of foreign arbitration awards?

Yes, the legal system in Romania provides for the recognition and enforcement of foreign arbitration awards in accordance with national legislation and relevant international conventions. Arbitral awards can be recognized and enforced by Romanian courts in accordance with the Code of Civil Procedure and the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.

29. Does your country guarantee foreign investors against nationalization and expropriation?

Romania generally guarantees foreign investors against unjustified nationalization and expropriation. The Constitution of Romania and legislation concerning foreign investment protect private property and establish that expropriation can only occur in exceptional cases, for the public utility, with adequate compensation, and according to established legal procedures.

30. Which internationally recognized regulatory agencies operate in your country?

There are several internationally recognized regulatory agencies operating in Romania in various fields, such as:

1. National Consumer Protection Authority (ANPC), which deals with consumer and competition protection,
2. National Environmental Protection Agency (ANPM), which monitors compliance with environmental legislation
3. National Trade Register Office (ONRC), which handles the registration and monitoring of enterprises. Additionally, the Competition Council operates on two main components: a preventive one, monitoring markets and supervising the actors on these markets, and a corrective one, aimed at restoring and ensuring the development of a normal competitive environment.
   

   

KEY BUSINESS SUPPORT SERVICES AND INFRASTRUCTURE

31. What international banks do you have?

There are several international banks operating in Romania, including branches of major international banks such as

• Raiffeisen Bank,
• UniCredit Bank,
• OTP Bank, BCR Bank,
• Alpha Bank, First Bank,
• BRD Group Societe Generale,
• Intesa SanPaolo Bank,
• ING Bank,
• Credit Europe Bank,
• Garanti Bank,
• Vista Bank,
• Procredit Bank, and others.

These banks off er a wide range of financial services for individuals and businesses, including current accounts, loans, investments, and corporate banking services.

32. What international accounting firms do you have?

Several international accounting and auditing firms operate in Romania, including the largest and most well-known accounting and consulting firms such as Deloitte, PricewaterhouseCoopers (PwC), Ernst&Young (EY) and KPMG. These companies provide audit, tax consultancy, and accounting services to clients across the country.

33. What international insurance companies do you have?

Numerous international insurance companies operate in Romania, off ering a wide range of insurance products and services for individuals and businesses. Among these companies are Allianz, Generali, Groupama, Grawe, NN, providing insurance for various domains such as life insurance, health insurance, property insurance, and auto insurance.

34. How extensive is the local supplier base (availability of raw materials, design and engineering services, machine maintenance and repair, printing, marketing, advertising, etc.) and the local supplier system?

The local supplier base in Romania is extensive, with a varied range of suppliers of raw materials, design and engineering services, machine maintenance and repair, printing, marketing, advertising, and other related business services. There is a solid network of local suppliers that can meet the diverse requirements of both local and foreign enterprises. For example, in the automotive sector, there are over 630 supplier companies.

35. Do you have a stock exchange/capital market?

Romania has a stock exchange, known as the Bucharest Stock Exchange (BVB), which is the primary trading venue for stocks and other financial instruments listed in the country. The BVB facilitates transactions with stocks, bonds, and other financial instruments, contributing to the development of Romania’s capital market.

36. Do you have a seaport? If yes, does it handle container cargo? Do you have an Export Processing Zone?

Romania has three seaports – Constanta, Mangalia, and Midia. The most important of these is the Port of Constanta, located on the Black Sea, which handles maritime cargo, including container cargo, and hosts an Export Processing Zone (EPZ) where special facilities are provided for producers and exporters operating in the area.

37. What airlines do you have and what international airlines fly to your country?

Romania has developed air connections, holding several major international airports, such as Henri Coandă International Airport in Bucharest and Cluj-Napoca International Airport. Several international airlines fl y to Romania, including Lufthansa, Air France, British Airways, Turkish Airlines, and others, off ering connections to destinations worldwide.

38. How are the telecommunications services? Are they reliable? How long does it take to install a phone line?

Telecommunications services in Romania are generally reliable, with modern infrastructure and extensive coverage of communication networks. Installing a phone line usually takes a few days or weeks, depending on the service provider and specific location.

Romania is known for a well-developed internet infrastructure, with high browsing speeds and stable connection. According to the Speedtest Global Index data for February 2024, Romania ranks 13th out of 181 countries globally and 4th among EU member states for fixed broadband internet speed, with a speed of 212.53 Mbps for download and 134.24 Mbps for upload. Regarding mobile connection, Romania ranks 44th out of 143, with a speed of 60.74 Mbps for download and 15.87 Mbps for upload.

39. Do you have a stable and adequate supply of energy and water? How many power outages have there been in the last six months? What are the plans for their modernization and that of other utilities?

Romania benefits from a stable and adequate supply of energy and water, with robust infrastructure in place. Authorities are considering modernizing the infrastructure and other utilities to improve efficiency and reliability of services.

40. Do you have a developed road network and land transportation facilities? If so, are they safe?

Romania has a developed and varied road network, including highways, national, and local roads. Highways are being extended and modernized, and Romania’s land transportation infrastructure is considered safe, with high standards of road construction and maintenance. Romanian authorities are making continuous eff orts to improve transportation infrastructure and road safety throughout the country.

Romania is committed to continuing massive investments in infrastructure, and the main driver of Romania’s economic modernization in the coming years will be the funding of all types of infrastructure. By the end of this year, another 250 kilometers of highway and express roads will be built, and in the next five to seven years, another 1,000 kilometers will be constructed

41. What are the basic prices of public utilities?

Prices for public utilities in Romania can vary depending on the region, provider, and individual consumption. Generally, prices for utilities such as electricity, natural gas, water, and sewage are regulated by authorities and can be aff ordable for the majority of the population. For example, the price of potable water produced, transported, and distributed ranges between 3-9 lei per cubic meter, while the tariff for sewage/sewage treatment ranges between 1-7 lei per cubic meter.

According to the latest data provided by Eurostat, in S1 2023, the price of energy for non-household consumers was 0.3139 euros per kWh, and the price for natural gas was 0.1431 euros per kWh. It is important to note that these prices are approximate and may vary depending on the region and the utility service provider.

ECONOMIC CONDITIONS

42. What is the exchange rate? Is it fixed or pegged to the dollar or other major currencies? Has it been stable in the last 12 months? Is foreign exchange easily accessible? If so, at what rate? What is the debt service rate?

The exchange rate in Romania is determined by the market and fl uctuates depending on supply and demand. The Romanian leu (RON) is not pegged to the dollar or other major currencies and can fl uctuate against them. In the last 12 months, the exchange rate has been relatively stable, with small variations depending on domestic and external economic and political conditions.

Foreign exchange is easily accessible, with currency exchange offices and banks available throughout the country, and exchange rates can be obtained from these financial institutions. The debt service rate is determined by the banks and financial institutions that provide the loans and may vary depending on contractual and market conditions. For example, the exchange rate (BNR) on April 10, 2023, is as follows: 1 EURO = 4.9692 Lei and 1 USD = 4.5748 Lei.

43. What is nivelul și structura impozitării?

The level and structure of taxation in Romania are regulated by national tax legislation. These include taxes on personal and corporate income, VAT, excise duties, social contributions, and others. The taxation structure may vary depending on the type of income or economic activity. For example, the income tax for employees is 10%, the standard corporate income tax rate for companies is 16%, the tax for investments in assets used in production and processing activities, as well as in assets representing retooling, is 0%, the tax for profit reinvested in new technological equipment is 0%, the tax on dividends is 8%, and the standard VAT rate is 19%.

44. What is the inflation rate?

The infl ation rate in Romania is monitored and published by the National Institute of Statistics (INS). In the last year, the infl ation rate has experienced fl uctuations, but overall it has remained at a moderate level.
Depending on internal and external economic conditions, as well as the monetary and fiscal policies implemented by authorities, the infl ation rate can experience variations.

The annual infl ation rate in January 2024 compared to January 2023 was 7.4% (according to the INS press release from 14.02.2024).

The annual infl ation rate in December 2023 compared to December 2022, calculated based on the HICP, was 7.0% (HICP – Harmonized Index of Consumer Prices = an indicator for determining infl ation at the level of EU member states) (according to the INS press release from 12.01.2024).

45. How productive is the workforce? What education and basic skills does it have?

The workforce in Romania is considered relatively productive, given the level of education and basic skills of the population. Romania has a well-developed education system that off ers a wide range of educational and vocational programs, from primary to university and technical levels. The skills of the workforce vary depending on the field of activity and the level of education, but overall, there is an observed increase in the level of education and skills among the active population.

Romania boasts an important talent pool with a high creative potential and highly skilled workforce; 97% of Romanian high school students learn at least two foreign languages, 90% of graduates are English speakers. Additionally, a good portion of them also speak German, French, Spanish, or Italian – which indicates a good capacity to overcome cultural and linguistic barriers.

49,0% of individuals aged 18-69 know at least one foreign language (INS/08.12.2023).

The number of IT engineers per capita is higher in Romania than in India, the United States, Russia, or China.

Dual education has been introduced at the secondary level – in this regard, the Authority for Vocational Training in the Dual System was established, and partnerships with major universities in the country were created.

46. What is the real growth rate? How is the economy: depressed, stagnant, or expanding? What is the level of unemployment? What has been the migration rate? Where do you see this economy in 10 years?

Currently, the economy is in a process of resuming its upward trend, and although the unemployment rate is declining, it remains at a significant level. Population migration can also infl uence the dynamics of the labor and economic markets. In the long term, Romania’s economy is expected to continue developing, with a focus on innovation, infrastructure, and sustainable growth.

According to Eurostat, Romania ranked 2nd among EU27 countries in GDP growth in Q2 2023 compared to Q2 2022. Additionally, Romania ranks 3rd among EU27 countries in GDP growth in Q3 2023 compared to Q3 2022, with a 2.9% increase in GDP, and 4th in GDP growth in Q3 2023 compared to Q2 2023 (0.9%).

According to INS data, in Q3 2023, GDP recorded a 0.9% increase compared to Q2 2023, and compared to Q3 2022, GDP increased by 1.1% on the gross series and 2.9% on the seasonally adjusted series. In Q4 2023, real GDP was 0.5% lower compared to Q3 2023, and compared to Q4 2022, GDP recorded a 3.0% increase on the gross series and 1.1% on the seasonally adjusted series.

According to the economic forecasts from the fall of 2023 by the National Commission for Strategy and Forecast, the estimates for economic growth are: 3.4% in 2024, 4.2% in 2025, 4.6% in 2026, and 4.1% in 2027.

Regarding the unemployment rate, according to the latest INS data, the unemployment rate in February 2024, on the seasonally adjusted series, was 5.6%. The estimated number of unemployed individuals (aged 15-74) for February 2024 was 466.4 thousand people.

47. What is the population size and what is the GDP per capita figure for last year?

Romania’s population is approximately 19 million inhabitants, and the GDP per capita for the year 2023 was 10,250 euros, according to the latest estimates from Eurostat for Romania.

Romania is in continuous development and aims to improve the standard of living and the welfare of the population by stimulating economic growth and investing in infrastructure and human capital.

QUALITY OF LIFE

48. What are the living conditions for expatriates? How are the hotels? Are there international schools? Do expatriateshave easy access to housing? Can foreigners travel freely in your country?

Living conditions for expatriates in Romania are good, and the tourist and hotel infrastructure is developed, off ering a variety of accommodation options, from luxury hotels to traditional guesthouses. There are also numerous international schools in major cities, providing high-quality education in various foreign languages.

Access to housing for expatriates is easy, with various options available depending on preferences and budget. Foreigners have the right to travel freely in the country and establish residence or work in accordance with applicable laws and procedures.

49. How modern are your health and hospital services? Is the water drinkable? Is the climate tolerable? What about recreational facilities?

Health and hospital services in Romania are continuously being modernized and improved, with a wide range of facilities and state-of-the-art medical equipment available in major hospitals and clinics.

Water is drinkable in most urban areas.

The climate in Romania is temperate continental, with hot summers and cold winters, and the climatic conditions are generally tolerable for most people.

As for recreational facilities, Romania off ers a variety of options, including protected natural areas, spa resorts, winter sports, and other tourist attractions.

50. What is the crime rate?

Romania is considered a country with a “very low” terrorism threat level, as confirmed by the value of 0.682 on the Global Terrorism Index (GTI) for our country, according to the annual report “Global Terrorism Index” published by the Institute for Economics and Peace (IEP) in 2023.

Local authorities take measures to ensure the safety and security of citizens and visitors.

• Rareș Burlacu, a PhD candidate and assistant at the École nationale d’administration publique in Montreal, emigrated to Canada in the mid-2000s. He returned to Romania in 2023 to lead the Romanian Agency for Investment and Foreign Trade.
• Since February 2022, Rareș Burlacu has also been a professor at the Bucharest University of Economic Studies.
• The Agency initiates, coordinates, and oversees policies and programs related to foreign trade and foreign investments, in collaboration with other governmental institutions. It promotes relevant legislation and supervises its implementation. Moreover, it is responsible for promoting foreign investments in Romania, as well as Romanian exports, and supporting the internationalization of domestic companies. The Agency collaborates with other entities and institutions, including the Ministry of Foreign Affairs, to support Romania’s commercial and investment interests, while also monitoring Romanian investments abroad.