Kiri
| Dokumendiregister | Majandus- ja Kommunikatsiooniministeerium |
| Viit | 10-1/2365-1 |
| Registreeritud | 19.09.2024 |
| Sünkroonitud | 20.09.2024 |
| Liik | Sissetulev kiri |
| Funktsioon | 10 Ettevõtlus ja innovatsioon |
| Sari | 10-1 Ettevõtluskeskkonna poliitika kavandamise ning korraldamise kirjavahetus |
| Toimik | 10-1/2024 |
| Juurdepääsupiirang | Avalik |
| Juurdepääsupiirang | |
| Adressaat | Helsinki Economic |
| Saabumis/saatmisviis | Helsinki Economic |
| Vastutaja | Sandra Särav (Majandus- ja Kommunikatsiooniministeerium, Kantsleri valdkond, Majanduse ja innovatsiooni valdkond) |
| Originaal | Ava uues aknas |
Failid
August 2024
Romania
A Strategic Choice
GOVERNMENT OF ROMANIA Romanian Agency for Investment
and Foreign Trade
1
Area: 238,391 km2 Capital: Bucharest
Currency: Romanian leu (RON) Exchange rates RON/EUR: 4.9465 RON/USD: 4.5743 (averages 2023)
Population: 19 M (1st Jan. 2023)
Bucharest Metropolitan Area: ~ 3 M
2023 GDP: €324.6 Bn GDP growth: 2.1%
Memberships 2004 – NATO
At the crossroad of tree large markets: EU, CIS and Middle East. Bridge between East and West for 450 M consumers market. Located in the GMT+2 time zone.
FDI flows: €6.6 Bn FDI stock: €113.6 Bn
Romania - Country overview
2007 - EU
2
3
4
Romania at a glance
FDI flows: €6.6 Bn in 2023
FDI stock: €115.7 Bn (Mar. 2024) 2.1% GDP growth in 2023
16% standard corporate income tax
19% standard VAT
10% standard personal income tax
8% dividend tax
0% tax on reinvested profit in new technological equipment
0% tax on reinvested profit in supporting vocational-dual education
0% income tax for employees in R&D
0% *income tax for employees who work in the IT&C, construction
field, agriculture and food industry
(Source: National Institute of Statistics)
(Source: National Bank of Romania - interactive database)
*Note: Exemption on the income for the employees involved in IT sector (software creation), construction, agriculture and food industry
that do not exceed a monthly gross income of 10,000 lei inclusive. The exemption applies where the basic function is located, based on an
individual employment contract. The part of the monthly gross income that exceeds 10,000 lei does not benefit from tax benefits.
4.1
3.2 2.9
8.2
6.0
3.9
-3.7
5.8 4.7
2.1 3.3
4.3
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024* 2025*
Macroeconomic forecasts GDP growth (%)
(Source: European Commission)
* European Commission, Spring Forecast 2024
Inflation & Unemployment
Inflation rate (HICP) (%)
1.4
-0.4 -1.1 1.1
4.1 3.9
2.3
4.1
12.0
9.7
5.9
4.0
2014 2017 2018 2019 2020 2021 2022 2023 2024* 2025*
Unemployment rate (%)
8.6 8.4 7.2
6.1 5.3 4.9 6.1 5.6 5.6 5.6 5.5 5.5
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024* 2025*
(Source: European Commission)
* European Commission, Spring Forecast 2024
2015 2016
Minimum wage in EU
(Note: These provisions do not apply in the construction sector, agricultural and the food industry in Romania.
All values are rounded. Denmark, Italy, Cyprus, Austria, Finland and Sweden - no national minimum wage.)
Gross Minimum Wage in EU (€/month)
July 2024
(Source: Eurostat, July 2024)
477
675 700 743 750 755 820 840
924 925 957 968 998 1000
1254 1323
1767
2054 2070 2134 2146
2571
FDI Flows & Stock
(Source: UNCTAD - World Investment Report 2023)
(Bn €)
10.0 15.0 21.9 34.5 42.8 48.8 48.8 51.4 53.7 57.9 60.0 60.2 64.4 70.1 75.9 81.1 88.3 90.8 100.3107.9113.6
1.9
5.2 5.2
9.1
7.3
9.5
3.4
2.3 1.7
2.5 2.7 2.4
3.5
4.5 4.8 5.3 5.2
3.0
8.9
10.0
6.6
0.0
2.0
4.0
6.0
8.0
10.0
12.0
0.0
20.0
40.0
60.0
80.0
100.0
120.0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023*
FDI stock FDI flows
In 2022, Romania ranked 6th by inflow FDI and 16th by FDI stock, among EU counties. By the number of on the pipe greenfield FDI projects, Romania ranked 15th in EU, with 69 projects.
(Source: National Bank of Romania)
*NBR, provisional data
FDI Stock by Sector €107,944 million
at December 31st, 2022
32,577 / 30.2 Manufacturing
Construction and real estate transactions
Trade
mill. € / % of total FDI
19,139 / 17.7
18,588 / 17.2
Financial intermediation and insurance
14,285 / 13.2
5,651 / 5.2
4,356 / 4.0
Electricity, gas and water supply
IT&C
Manufacturing sector - largest recipients:
22.1% transport equipment
21.1% oil processing, chemical, rubber & plastic products
12.2% food, beverages and tobacco
(Note: National Bank of Romania, Report: ”Foreign Direct Investment in Romania in 2022”, published in September 2023)
Talent Pool
(Source: National Institute of Statistics)
Students in 2022 Enrolled 538,720
Graduates 125,580
Arad
Bacau
Baia Mare
Botosani
Braila Brasov
Bucharest
Buzau
Cluj-Napoca
Constanta
Craiova
Drobeta-Turnu Severin
Focsani Galati
Oradea
Piatra Neamt
Pitesti
PloiestiRamnicu Valcea
Satu Mare
Sibiu
Suceava
Targu Mures
Timisoara
Alba Iulia
Birlad
Bistrita
Calarasi
Deva
Giurgiu
Hunedoara
Medias Onesti
Resita
Roman
Sfantul Gheorghe
Slatina
Slobozia TargovisteTargu Jiu
Tulcea
Turda
VasluiZalau
Iasi
Cluj-Napoca - 9 Universities 68,918 enrolled students
14,916 graduates
Bucharest - 30 Universities 169,493 enrolled students
41,883 graduates
Iasi - 7 Universities 54,672 enrolled students
11,422 graduates
Timisoara - 7 Universities 43,423 enrolled students
9,033 graduates
Constanta - 5 Universities 21,135 enrolled students
4,809 graduates
= City 50,000 – 100,000 inhabitants
= City > 100,000 inhabitants
Largest University Centers in Romania
Talent Pool
Professional education
29953
1100
27915
2110
132
0 5000 10000 15000 20000 25000 30000 35000
Vocational schools - 2nd cycle
Special vocational schools - 2nd cycle
Post-secondary schools
Foremen schools
Special post-secondary schools
Graduates in the vocational, post high school and foremen education in 2022 (number of persons)
(Source: National Institute of Statistics)
Communication skills
Languages studied by Romanian students
(Source: ANIS, NIS, Eurostat)
97% • 97% of Romanian high school students study two or more foreign languages
• Predominant languages: English, French, German and Spanish, yet initiatives as regards Japanese, Nordic languages or the entire Latin language family
University students in Romania are proficient in (% of total):
90% 26% 17% 8% 5%
Centers of Excellence
BOSCH Cluj-Napoca SIEMENS Cluj-Napoca
DAIMLER Sebes
ELI – NP Magurele
PORSCHE Engineering Romania / Cluj-Napoca
HELLA Technical Center Craiova
SONACA Turda
One of the most competitive labor force in
the EU (€11)
Hourly labor costs 2023
(Source: Eurostat, April 2024)
# 13/181 212.53 Mbps for download
134.24 Mbps for upload
Fixed Broadband
(Source: Speedtest Global Index, February 2024)
2
S1 2023* EU27 ranking
#20 0.1074€/KWh
Natural gas prices
(Source: Eurostat dataset, Apr. 2024)
*Excluding VAT and other recoverable taxes and levies
Harvard University economic complexity ranking (133 countries)
(Source: Harvard, The Atlas of Complexity 2021)
19
Romania, competitive market
Ahead of Belgium (20), Denmark (24), Poland (25), Estonia (27), Netherlands (26), Lithuania (30), Croatia (31) and Spain (34)
BUCHAREST BERLIN LONDON
Consumer Prices* €100 €156 €191
Rent Prices €100 €263 €436
Restaurant Prices €100 €132 €189
Groceries Prices €100 €157 €171
Standard of living equivalency net salary
€2615 €4702 €6993
Numbeo is the world’s largest cost of living database. Numbeo is also a crowd-sourced global database of quality of life information including housing indicators, perceived crime rates and quality of healthcare, among many other statistics.
Value for money
*without rent
(Source: Numbeo, avril 2024)
Numbeo is the world’s largest cost of living database. Numbeo is also a crowd-sourced global database of quality of life information including housing indicators, perceived crime rates and quality of healthcare, among many other statistics.
Value for money
*without rent
BUCHAREST PARIS BRUSSELS
Consumer Prices* €100 €180 €162
Rent Prices €100 €215 €226
Restaurant Prices €100 €166 €160
Groceries Prices €100 €210 €170
Standard of living equivalency net salary
€2615 €5490 €4608
(Source: Numbeo, April 2024)
Tax system
Social Security
Employer Employee
Reinvested Profit Tax
Social Security
16%
0%
8%
2.25% 19%
10%
35%
Income TaxStandard Corporate Income Tax
Dividend Tax Rate
Standard VAT
0% income tax for employers and employees that exclusively perform R&D and innovation activities or related activities, 0% profit tax for the first 10 years of activity Specific deduction for R&D eligible expenses:
- accelerated depreciation of R&D equipment - additional corporate tax deduction of 50% of the eligible expenditure for these activities
0% income tax for employees involved in: IT&C (software creation), construction, agriculture & food industry. The exemption applies for the monthly gross income that does not exceed 10,000 lei inclusive, in compliance to the law in force.
Comparative tax in EU 2023
(Source: Tax Foundation)
9 10 12.5 12.5 15 16 18 19 19 19 20 20 20 20.6 21 22 22 23 24.9 25 25 25.8 25.8 27.8 29.9 31.5 35
HU BG CY IE LT RO HR CZ PL SI EE FI LV SE SK DK EL AT LU BE ES FR NL IT DE PT MT
Corporate income tax rates (%)
17 18 19 19 19 20 20 20 20 21 21 21 21 21 21 22 22 22 23 23 23 24 24 25 25 25 27
LU MT RO CY DE AT BG FR SK BE CZ LV LT NL ES EE IT SI IE PL PT FI EL HR DK SE HU
Standard VAT rate (%)
5 5 7 8 12 15 15 17 19 21 23 26 26 27 28 28 28 28 29 30 30 34
42 51
BG EL SK RO HR HU LT CY PL LU CZ IT DE NL AT SI PT ES FI BE SE FR DK IE
Dividends (%)
Investment support
Eligible expenses: any type of new constructions technical installations, new machines and equipment depreciable assets associated with the initial investment such as patents,
licenses, know-how or other intellectual property rights
STATE AID - GD 300 / 2024
The beneficiary must secure a financial contribution of at least 25% of the eligible costs, either through his own resources or through external financing, in a form that is not subject to any other public aid.
The investment must be maintained for at least 5 years after its completion.
Annual Budget: ~ € 150 Mill.
2024-2026 Total Budget: ~ € 450 Mill.
Financial support aimed at regional development through investment stimulation
Managed by: The Ministry of Finance
Minimum € 10 Mill. in eligible costs
(Source: The Official Monitor, April 4th, 2023)
SV
BT
VS
IS
GL
TL
CT
BR
CL
IL
Bucharest
NT
BC
VN
BZ PH
GR
DB AG
BV CV
HR MS
SBHD
CS VL GJ
MH
DJ OT
TR
BH
AB AR
TM
BN
MMSM
SJ
CJ
IF
30%
40%
50%
60%
Ineligible
30%-40%
70%
Intensity Map
STATE AID - GD 300 / 2024
Investment support
Eligible expenses: investment in tangible assets (buildings, land, technical installations, machinery and equipment) and intangible assets (patents, licenses, know-how or other intellectual property rights) related to the establishment of a new unit, expanding the capacity of an existing one or diversification of a production unit.
Maximum amount: € 50,000,000 depending on the county where the investment is located.
STATE AID - GEO 68 / 2023 ConstructPlus
Financial support of investments for the establishment and/or development of production capacities for construction products and materials
The investment must be maintained in the beneficiary region for a minimum of 5 years after its completion or, at least 3 years for SMEs.
2024 Budget: ~ € 149 Mill.
2023-2026 Total Budget: ~ € 596 Mill.
Managed by: The Ministry of Economy, Entrepreneurship and Tourism
(Source: The Official Monitor, July 7th, 2023)
SV
BT
VS
IS
GL
TL
CT
BR
CL
IL Bucharest
NT
BC
VN
BZ PH
GR
DB AG
BV CV
HR MS
SBHD
CS VL GJ
MH
DJ OT
TR
BH
AB AR
TM
BN
MMSM
SJ
CJ
IF
30%
40%
50%
60%
Ineligible
35%-45%
70%
Intensity Map
GEO 68 / 2023 ConstructPlus
Investment support STATE AID - GD 959 / 2022
2022-2027 Total Budget: € 300 Mill. Annual Budget: € 150 Mill.
Eligible expenses: Starting a new unit / new activity Expanding the capacity of an existing unit (except for large enterprises from Ilfov) Diversifying the production through products that were not previously manufactured in the unit Fundamental change of the general production process of an existing unit (except for large
enterprises from Ilfov) Acquisition of the assets from a closed unit or from a unit that would have been closed in case an
independent investor had not been acquired the assets Creating new jobs
Minimum € 3 Mill. investment value
Financial support for investments in the manufacturing industry, in the forms of grants for Greenfields or for projects favoring a new economic activity
Managed by: The Ministry of Economy, Entrepreneurship and Tourism
The investment must be maintained in the beneficiary region for a minimum of 5 years after its completion or, at least 3 years for SMEs.
(Source: The Official Monitor, August 4th, 2022)
SV
BT
VS
IS
GL
TL
CT
BR
CL
IL Bucharest
NT
BC
VN
BZ PH
GR
DB AG
BV CV
HR MS
SBHD
CS VL GJ
MH
DJ OT
TR
BH
AB AR
TM
BN
MMSM
SJ
CJ
IF
30%
40%
50%
60%
Ineligible
35%-45%
70%
Intensity Map
STATE AID - GD 959 / 2022
The Public-Private Partnership (PPP)
The mechanism of PPP
cooperation between the public and the private partner, in order to implement a public project
the duration of contractual relationships exceeding 5 years, to allow the private partner the recovery of
the investment and the achievement of a reasonable profit
financing the project, mainly from private funds and, as the case may be, by merging private and public
funds
achievement of the public and the private partner’s goal
risks-sharing between the public and the private partner, depending on each party’s ability to assess,
manage and control a particular risk
The Public-Private Partnership (PPP)
The forms of PPP
The contractual public-private partnership, concluded between the public partner and the private
one, with the contract being implemented through a project company owned entirely by the private
partner
The institutional public-private partnership, concluded between the public partner and the private
one, whereby a new company is set-up by both, to act as a project company that, after its registration at
the Companies Register, becomes a party itself to the public-private partnership contract in question
As regards both contractual and institutional public-private partnership, if another public entity intends to
support the implementation of the project by assuming payment obligations or guarantees towards the
private partner, for the benefit of the public one, it can only do so if the payment obligation or guarantee
has been provided for specifically, in both the substantiation study and the tender documentation, with
clear indication of the conditions that must be met for its fulfillment.
The Public-Private Partnership (PPP)
Financing investments within the PPP framework:
in full, from financial resources provided by the private partner from its own sources or acquired from
various financiers
from financial resources provided together by the private and public partner
from financial resources provided by sovereign development and investment funds, privately managed
pension funds, as well as investment funds and investment companies
by corporate bonds issued by the project company for implementing the PPP project
The PPP contract is concluded in accordance with the Romanian law,
regardless of the private partner’s nationality.
Satu Mare
Oradea
Suceava
Timisoara
Craiova
Sibiu
Targu Mures Cluj-Napoca Bacau
Iasi
Bucharest, Otopeni
Drobeta Turnu-Severin
Giurgiu
Mangalia
Constanta
Sulina
TulceaBraila
Galati
Baia Mare
Arad
Brasov
M.Kogalniceanu
Connectivity
(Source: National Institute of Statistics)
Romania owns 1/3 of the Danube River, also standing as the most significant gateway to the Black Sea through Constanta Port, the largest and deepest one (25 meters) at the Black Sea (with a 6 days time saving competitive advantage against the biggest European port, Rotterdam, as concerns Asian goods transportation by sea).
17 International Airports with more than 100 direct flights worldwide.
Bucharest, Aurel Vlaicu
International Fligths
Ports
112 modern industrial parks spread across Romania, with both private and public ownership, totaling 3,466.76 ha
Access to utilities & benefits packages according to their focus
Exemption on land, building and urban planning taxes
(Source: Ministry for the Public Works, Development and Administration, April 2024)
24
14
8 27
5
9
18
7
Industrial parks
Investment opportunities
Digitalization of the agriculture sector Irrigation infrastructure, drainage and
soil erosion Mechanization and the extensive use
of modern technology Collecting, storage systems and
processing of agriculture products The Organic Farming segment
Romania is the country with the highest number of farmers in the EU, amounting to almost 3.5 million.
Romania is one of the biggest producers of cereals in the EU and the largest producer of sunflower seeds, honey and plums
The area in Romania used for agriculture constitutes almost 13.5 million ha
23% of the Romanian labour force are employed in agriculture, which is the highest percentage of people employed in agriculture in the EU
(Source: Eurostat)
16.8 15.5 15.4
17.2 18.6 19.0
16.8
21.1 22.2
23.8
11.0 9.8 10.1
11.6 13.2 13.3
10.9
15.0 14.6 14.7
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Market size evolution (Bn €)
Total Crop output
Agriculture
Energy
Romania will include in its national system for energy production the small modular reactors (SMR) by 2028, thus strengthening the partnership with the USA in the civil nuclear field.
Future projects with Government Support
Offshore wind parks of 300 MW Power Plants Combined Cycle Gas
Turbine Smart grids and digitalization of
electrical transport network Photovoltaics parks of 700 MW
Romanian renewable energy market
Bioenergy Solar energy Wind
Hydropower Hydrogen Nuclear
Large companies for new investments (clients/suppliers)
Largest IT&C companies in Romania
INDUSTRY SIZE KEY PLAYERS NEW KEY PROJECTS
Key facts for top tech oriented industries in 2022
Premium Aerotec €100 M investment Sonaca €100 M investment Airbus Helicopters €15 M investment UAC Europe €100 M investment
€678.9 M
AEROSPACE
€15.8 Bn
Amazon €120 M new corporate office to develop innovations across areas like product safety, compliance, cloud computing, machine learning, and information security (2023)
Siemens has opened a regional service hub in the field of energy, IT and cyber security (2022)
Siemens software developers worked on the Mars Rover Microsoft opened a Technology Development Center in
Iasi (2020)
IT&C
AUTOMOTIVE
€31 Bn
Dacia €60 M project for the manufacture of a new model Ford Otosan €490 M project to produce electric cars Nokian Tyres €650 M new passenger car tire factory Daimler (Star Assembly) €135 M e-vehicle engine factory
(starting 2024) Continental €180 M investment in 2022 (R&D extension
center & megafactory in Timisoara)
InvestRomania in a nutshell
“one-stop-shop” for foreign investors, assisting and advising international companies for
project implementation in the country
Promoting and facilitating foreign investment in Romania
Main interface between foreign companies and central / local authorities
Assisting worldwide entrepreneurs in project implementation
Tailored and individually custom-made solutions for
developing new or current units
Consultancy and guidance during all stages of the decisional process
(state aid & fiscal incentives)
InvestRomania hosts the Romanian National Contact Point for Responsible Business Conduct (NCP) responsible with encouraging the observance of the OECD Guidelines for Multinational Enterprises and related information dissemination within the business communities and others interested parties.
National Contact Point
National Contact Point for Responsible Business Conduct for the OECD Guidelines for Multinational Enterprises https://mneguidelines.oecd.org/ncps/
The National Contact Point for Responsible Business Conduct (NCP) for the implementation of the recommendations made by the Organization for Economic Cooperation and Development (OECD) in the Guidelines for Multinational Enterprises was established by Government Decision no. 420 of May 12, 2005. The mandate of the National Contact Point for Responsible Business Conduct, presented in the Guidelines for Multinational Enterprises of the Organization for Economic Cooperation and Development (OECD) is two fold: Promote and increase awareness on the OECD Guidelines for Multinational Enterprises and handle enquiries by organizing and
participating in events related to RBC to raise awareness of the Guidelines and to address questions about the Guidelines Provide a grievance mechanism to resolve cases (known as “specific instances”) relating to non observance of the recommendations
of the Guidelines
The National Contact Point for Responsible Business Conduct provides a discussion forum and supports the business community, the employer’s organizations and other interested parties in reviewing the subject matter in an effective and timely manner and in accordance with the legislation in force. Contact National Contact Point for Responsible Business Conduct E-mail: pnc@investromania.gov.ro
The OECD Guidelines for Multinational Enterprises on Responsible Business Conduct
The OECD Guidelines for Multinational Enterprises on Responsible Business Conduct contains a series of recommendations for national governments of multinational enterprises, voluntary principles and standards for responsible business conduct in a global level, in accordance with the existing legislation.
The Guidelines aim to ensure that the operations of these enterprises are in harmony with government policies, to strengthen the basis of mutual confidence between enterprises and the societies in which they operate, to help improve the foreign investment climate and to enhance the contribution to sustainable development made by multinational enterprises. The OECD Guidelines for Multinational Enterprises on Responsible Business Conduct cover fields such as: Employment and Industrial Relations Environment Human Rights Combating Bribery, Bribe Solicitation and Extortion Consumers Interests Science and technology Competition Taxation
“OECD GUIDELINES FOR MULTINATIONAL ENTERPRISES ON RESPONSIBLE BUSINESS CONDUCT” can be downloaded at: https://read.oecd-ilibrary.org/finance-and-investment/oecd-guidelines-for-multinational-enterprises-on-responsible- business-conduct_81f92357-en#page1
GOVERNMENT OF ROMANIA Romanian Agency for Investment
and Foreign Trade
9-11 Promoroaca Street, District 1 Bucharest, Romania
E-mail: investromania.gov.ro
office@investromania.gov.ro
Tähelepanu! Tegemist on välisvõrgust saabunud kirjaga. |
Good afternoon,
Please find attached a material (Invest Romania - Key points) that presents the main competitive advantages Romania offers to potential foreign investors.
Romania is interested to attract Estonian investors and would like to ask for your assistance by sharing the information attached among members, stakeholders and authorities that might be interested in future investments and foreign trade with Romania.
For further information, please contact InvestRomania, part of The Romanian Agency for Investment and Foreign Trade. InvestRomania is the government body dedicated to providing professional support and advice to foreign investors in Romania. Its main goal is to attract and facilitate inward FDI into the country.
InvestRomania is also the “one-stop-shop” for foreign investors, assisting and advising international companies for project implementation in the country.
Foreign Investment Directorate contact details are:
Website: http://investromania.gov.ro/web/
Address: 9-11 Promoroaca Street, 1st District, Bucharest, Romania
Emails:
Best regards!
Olivia PETRE
Minister-counsellor for Economic Affairs
Embassy of Romania to the Republic of Finland
Stenbäckinkatu, 24
Helsinki 00250, Finland
Tel.: +358 (9) 241 44 14
Mobile: +358 45 186 61 28
Web:
www.helsinki.mae.ro
E-mail: helsinki.economic@mae.ro
|
This message is confidential and is property of the Romanian Ministry of Foreign Affairs. It is exclusively destined to the person mentioned as addressee, as well
as to any other
person authorized to receive it. In case you are not the intended addressee, we hereby inform you that the disclosure, copying or distribution of the present i nformation, or the initiation
of any action based on it are strictly forbidden and determine legal responsibility. If you have received it by mistake, please notify the sender and delete it from your system.
Thank you.
August 2024
Romania
A Strategic Choice
GOVERNMENT OF ROMANIA Romanian Agency for Investment
and Foreign Trade
1
Area: 238,391 km2 Capital: Bucharest
Currency: Romanian leu (RON) Exchange rates RON/EUR: 4.9465 RON/USD: 4.5743 (averages 2023)
Population: 19 M (1st Jan. 2023)
Bucharest Metropolitan Area: ~ 3 M
2023 GDP: €324.6 Bn GDP growth: 2.1%
Memberships 2004 – NATO
At the crossroad of tree large markets: EU, CIS and Middle East. Bridge between East and West for 450 M consumers market. Located in the GMT+2 time zone.
FDI flows: €6.6 Bn FDI stock: €113.6 Bn
Romania - Country overview
2007 - EU
2
3
4
Romania at a glance
FDI flows: €6.6 Bn in 2023
FDI stock: €115.7 Bn (Mar. 2024) 2.1% GDP growth in 2023
16% standard corporate income tax
19% standard VAT
10% standard personal income tax
8% dividend tax
0% tax on reinvested profit in new technological equipment
0% tax on reinvested profit in supporting vocational-dual education
0% income tax for employees in R&D
0% *income tax for employees who work in the IT&C, construction
field, agriculture and food industry
(Source: National Institute of Statistics)
(Source: National Bank of Romania - interactive database)
*Note: Exemption on the income for the employees involved in IT sector (software creation), construction, agriculture and food industry
that do not exceed a monthly gross income of 10,000 lei inclusive. The exemption applies where the basic function is located, based on an
individual employment contract. The part of the monthly gross income that exceeds 10,000 lei does not benefit from tax benefits.
4.1
3.2 2.9
8.2
6.0
3.9
-3.7
5.8 4.7
2.1 3.3
4.3
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024* 2025*
Macroeconomic forecasts GDP growth (%)
(Source: European Commission)
* European Commission, Spring Forecast 2024
Inflation & Unemployment
Inflation rate (HICP) (%)
1.4
-0.4 -1.1 1.1
4.1 3.9
2.3
4.1
12.0
9.7
5.9
4.0
2014 2017 2018 2019 2020 2021 2022 2023 2024* 2025*
Unemployment rate (%)
8.6 8.4 7.2
6.1 5.3 4.9 6.1 5.6 5.6 5.6 5.5 5.5
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024* 2025*
(Source: European Commission)
* European Commission, Spring Forecast 2024
2015 2016
Minimum wage in EU
(Note: These provisions do not apply in the construction sector, agricultural and the food industry in Romania.
All values are rounded. Denmark, Italy, Cyprus, Austria, Finland and Sweden - no national minimum wage.)
Gross Minimum Wage in EU (€/month)
July 2024
(Source: Eurostat, July 2024)
477
675 700 743 750 755 820 840
924 925 957 968 998 1000
1254 1323
1767
2054 2070 2134 2146
2571
FDI Flows & Stock
(Source: UNCTAD - World Investment Report 2023)
(Bn €)
10.0 15.0 21.9 34.5 42.8 48.8 48.8 51.4 53.7 57.9 60.0 60.2 64.4 70.1 75.9 81.1 88.3 90.8 100.3107.9113.6
1.9
5.2 5.2
9.1
7.3
9.5
3.4
2.3 1.7
2.5 2.7 2.4
3.5
4.5 4.8 5.3 5.2
3.0
8.9
10.0
6.6
0.0
2.0
4.0
6.0
8.0
10.0
12.0
0.0
20.0
40.0
60.0
80.0
100.0
120.0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023*
FDI stock FDI flows
In 2022, Romania ranked 6th by inflow FDI and 16th by FDI stock, among EU counties. By the number of on the pipe greenfield FDI projects, Romania ranked 15th in EU, with 69 projects.
(Source: National Bank of Romania)
*NBR, provisional data
FDI Stock by Sector €107,944 million
at December 31st, 2022
32,577 / 30.2 Manufacturing
Construction and real estate transactions
Trade
mill. € / % of total FDI
19,139 / 17.7
18,588 / 17.2
Financial intermediation and insurance
14,285 / 13.2
5,651 / 5.2
4,356 / 4.0
Electricity, gas and water supply
IT&C
Manufacturing sector - largest recipients:
22.1% transport equipment
21.1% oil processing, chemical, rubber & plastic products
12.2% food, beverages and tobacco
(Note: National Bank of Romania, Report: ”Foreign Direct Investment in Romania in 2022”, published in September 2023)
Talent Pool
(Source: National Institute of Statistics)
Students in 2022 Enrolled 538,720
Graduates 125,580
Arad
Bacau
Baia Mare
Botosani
Braila Brasov
Bucharest
Buzau
Cluj-Napoca
Constanta
Craiova
Drobeta-Turnu Severin
Focsani Galati
Oradea
Piatra Neamt
Pitesti
PloiestiRamnicu Valcea
Satu Mare
Sibiu
Suceava
Targu Mures
Timisoara
Alba Iulia
Birlad
Bistrita
Calarasi
Deva
Giurgiu
Hunedoara
Medias Onesti
Resita
Roman
Sfantul Gheorghe
Slatina
Slobozia TargovisteTargu Jiu
Tulcea
Turda
VasluiZalau
Iasi
Cluj-Napoca - 9 Universities 68,918 enrolled students
14,916 graduates
Bucharest - 30 Universities 169,493 enrolled students
41,883 graduates
Iasi - 7 Universities 54,672 enrolled students
11,422 graduates
Timisoara - 7 Universities 43,423 enrolled students
9,033 graduates
Constanta - 5 Universities 21,135 enrolled students
4,809 graduates
= City 50,000 – 100,000 inhabitants
= City > 100,000 inhabitants
Largest University Centers in Romania
Talent Pool
Professional education
29953
1100
27915
2110
132
0 5000 10000 15000 20000 25000 30000 35000
Vocational schools - 2nd cycle
Special vocational schools - 2nd cycle
Post-secondary schools
Foremen schools
Special post-secondary schools
Graduates in the vocational, post high school and foremen education in 2022 (number of persons)
(Source: National Institute of Statistics)
Communication skills
Languages studied by Romanian students
(Source: ANIS, NIS, Eurostat)
97% • 97% of Romanian high school students study two or more foreign languages
• Predominant languages: English, French, German and Spanish, yet initiatives as regards Japanese, Nordic languages or the entire Latin language family
University students in Romania are proficient in (% of total):
90% 26% 17% 8% 5%
Centers of Excellence
BOSCH Cluj-Napoca SIEMENS Cluj-Napoca
DAIMLER Sebes
ELI – NP Magurele
PORSCHE Engineering Romania / Cluj-Napoca
HELLA Technical Center Craiova
SONACA Turda
One of the most competitive labor force in
the EU (€11)
Hourly labor costs 2023
(Source: Eurostat, April 2024)
# 13/181 212.53 Mbps for download
134.24 Mbps for upload
Fixed Broadband
(Source: Speedtest Global Index, February 2024)
2
S1 2023* EU27 ranking
#20 0.1074€/KWh
Natural gas prices
(Source: Eurostat dataset, Apr. 2024)
*Excluding VAT and other recoverable taxes and levies
Harvard University economic complexity ranking (133 countries)
(Source: Harvard, The Atlas of Complexity 2021)
19
Romania, competitive market
Ahead of Belgium (20), Denmark (24), Poland (25), Estonia (27), Netherlands (26), Lithuania (30), Croatia (31) and Spain (34)
BUCHAREST BERLIN LONDON
Consumer Prices* €100 €156 €191
Rent Prices €100 €263 €436
Restaurant Prices €100 €132 €189
Groceries Prices €100 €157 €171
Standard of living equivalency net salary
€2615 €4702 €6993
Numbeo is the world’s largest cost of living database. Numbeo is also a crowd-sourced global database of quality of life information including housing indicators, perceived crime rates and quality of healthcare, among many other statistics.
Value for money
*without rent
(Source: Numbeo, avril 2024)
Numbeo is the world’s largest cost of living database. Numbeo is also a crowd-sourced global database of quality of life information including housing indicators, perceived crime rates and quality of healthcare, among many other statistics.
Value for money
*without rent
BUCHAREST PARIS BRUSSELS
Consumer Prices* €100 €180 €162
Rent Prices €100 €215 €226
Restaurant Prices €100 €166 €160
Groceries Prices €100 €210 €170
Standard of living equivalency net salary
€2615 €5490 €4608
(Source: Numbeo, April 2024)
Tax system
Social Security
Employer Employee
Reinvested Profit Tax
Social Security
16%
0%
8%
2.25% 19%
10%
35%
Income TaxStandard Corporate Income Tax
Dividend Tax Rate
Standard VAT
0% income tax for employers and employees that exclusively perform R&D and innovation activities or related activities, 0% profit tax for the first 10 years of activity Specific deduction for R&D eligible expenses:
- accelerated depreciation of R&D equipment - additional corporate tax deduction of 50% of the eligible expenditure for these activities
0% income tax for employees involved in: IT&C (software creation), construction, agriculture & food industry. The exemption applies for the monthly gross income that does not exceed 10,000 lei inclusive, in compliance to the law in force.
Comparative tax in EU 2023
(Source: Tax Foundation)
9 10 12.5 12.5 15 16 18 19 19 19 20 20 20 20.6 21 22 22 23 24.9 25 25 25.8 25.8 27.8 29.9 31.5 35
HU BG CY IE LT RO HR CZ PL SI EE FI LV SE SK DK EL AT LU BE ES FR NL IT DE PT MT
Corporate income tax rates (%)
17 18 19 19 19 20 20 20 20 21 21 21 21 21 21 22 22 22 23 23 23 24 24 25 25 25 27
LU MT RO CY DE AT BG FR SK BE CZ LV LT NL ES EE IT SI IE PL PT FI EL HR DK SE HU
Standard VAT rate (%)
5 5 7 8 12 15 15 17 19 21 23 26 26 27 28 28 28 28 29 30 30 34
42 51
BG EL SK RO HR HU LT CY PL LU CZ IT DE NL AT SI PT ES FI BE SE FR DK IE
Dividends (%)
Investment support
Eligible expenses: any type of new constructions technical installations, new machines and equipment depreciable assets associated with the initial investment such as patents,
licenses, know-how or other intellectual property rights
STATE AID - GD 300 / 2024
The beneficiary must secure a financial contribution of at least 25% of the eligible costs, either through his own resources or through external financing, in a form that is not subject to any other public aid.
The investment must be maintained for at least 5 years after its completion.
Annual Budget: ~ € 150 Mill.
2024-2026 Total Budget: ~ € 450 Mill.
Financial support aimed at regional development through investment stimulation
Managed by: The Ministry of Finance
Minimum € 10 Mill. in eligible costs
(Source: The Official Monitor, April 4th, 2023)
SV
BT
VS
IS
GL
TL
CT
BR
CL
IL
Bucharest
NT
BC
VN
BZ PH
GR
DB AG
BV CV
HR MS
SBHD
CS VL GJ
MH
DJ OT
TR
BH
AB AR
TM
BN
MMSM
SJ
CJ
IF
30%
40%
50%
60%
Ineligible
30%-40%
70%
Intensity Map
STATE AID - GD 300 / 2024
Investment support
Eligible expenses: investment in tangible assets (buildings, land, technical installations, machinery and equipment) and intangible assets (patents, licenses, know-how or other intellectual property rights) related to the establishment of a new unit, expanding the capacity of an existing one or diversification of a production unit.
Maximum amount: € 50,000,000 depending on the county where the investment is located.
STATE AID - GEO 68 / 2023 ConstructPlus
Financial support of investments for the establishment and/or development of production capacities for construction products and materials
The investment must be maintained in the beneficiary region for a minimum of 5 years after its completion or, at least 3 years for SMEs.
2024 Budget: ~ € 149 Mill.
2023-2026 Total Budget: ~ € 596 Mill.
Managed by: The Ministry of Economy, Entrepreneurship and Tourism
(Source: The Official Monitor, July 7th, 2023)
SV
BT
VS
IS
GL
TL
CT
BR
CL
IL Bucharest
NT
BC
VN
BZ PH
GR
DB AG
BV CV
HR MS
SBHD
CS VL GJ
MH
DJ OT
TR
BH
AB AR
TM
BN
MMSM
SJ
CJ
IF
30%
40%
50%
60%
Ineligible
35%-45%
70%
Intensity Map
GEO 68 / 2023 ConstructPlus
Investment support STATE AID - GD 959 / 2022
2022-2027 Total Budget: € 300 Mill. Annual Budget: € 150 Mill.
Eligible expenses: Starting a new unit / new activity Expanding the capacity of an existing unit (except for large enterprises from Ilfov) Diversifying the production through products that were not previously manufactured in the unit Fundamental change of the general production process of an existing unit (except for large
enterprises from Ilfov) Acquisition of the assets from a closed unit or from a unit that would have been closed in case an
independent investor had not been acquired the assets Creating new jobs
Minimum € 3 Mill. investment value
Financial support for investments in the manufacturing industry, in the forms of grants for Greenfields or for projects favoring a new economic activity
Managed by: The Ministry of Economy, Entrepreneurship and Tourism
The investment must be maintained in the beneficiary region for a minimum of 5 years after its completion or, at least 3 years for SMEs.
(Source: The Official Monitor, August 4th, 2022)
SV
BT
VS
IS
GL
TL
CT
BR
CL
IL Bucharest
NT
BC
VN
BZ PH
GR
DB AG
BV CV
HR MS
SBHD
CS VL GJ
MH
DJ OT
TR
BH
AB AR
TM
BN
MMSM
SJ
CJ
IF
30%
40%
50%
60%
Ineligible
35%-45%
70%
Intensity Map
STATE AID - GD 959 / 2022
The Public-Private Partnership (PPP)
The mechanism of PPP
cooperation between the public and the private partner, in order to implement a public project
the duration of contractual relationships exceeding 5 years, to allow the private partner the recovery of
the investment and the achievement of a reasonable profit
financing the project, mainly from private funds and, as the case may be, by merging private and public
funds
achievement of the public and the private partner’s goal
risks-sharing between the public and the private partner, depending on each party’s ability to assess,
manage and control a particular risk
The Public-Private Partnership (PPP)
The forms of PPP
The contractual public-private partnership, concluded between the public partner and the private
one, with the contract being implemented through a project company owned entirely by the private
partner
The institutional public-private partnership, concluded between the public partner and the private
one, whereby a new company is set-up by both, to act as a project company that, after its registration at
the Companies Register, becomes a party itself to the public-private partnership contract in question
As regards both contractual and institutional public-private partnership, if another public entity intends to
support the implementation of the project by assuming payment obligations or guarantees towards the
private partner, for the benefit of the public one, it can only do so if the payment obligation or guarantee
has been provided for specifically, in both the substantiation study and the tender documentation, with
clear indication of the conditions that must be met for its fulfillment.
The Public-Private Partnership (PPP)
Financing investments within the PPP framework:
in full, from financial resources provided by the private partner from its own sources or acquired from
various financiers
from financial resources provided together by the private and public partner
from financial resources provided by sovereign development and investment funds, privately managed
pension funds, as well as investment funds and investment companies
by corporate bonds issued by the project company for implementing the PPP project
The PPP contract is concluded in accordance with the Romanian law,
regardless of the private partner’s nationality.
Satu Mare
Oradea
Suceava
Timisoara
Craiova
Sibiu
Targu Mures Cluj-Napoca Bacau
Iasi
Bucharest, Otopeni
Drobeta Turnu-Severin
Giurgiu
Mangalia
Constanta
Sulina
TulceaBraila
Galati
Baia Mare
Arad
Brasov
M.Kogalniceanu
Connectivity
(Source: National Institute of Statistics)
Romania owns 1/3 of the Danube River, also standing as the most significant gateway to the Black Sea through Constanta Port, the largest and deepest one (25 meters) at the Black Sea (with a 6 days time saving competitive advantage against the biggest European port, Rotterdam, as concerns Asian goods transportation by sea).
17 International Airports with more than 100 direct flights worldwide.
Bucharest, Aurel Vlaicu
International Fligths
Ports
112 modern industrial parks spread across Romania, with both private and public ownership, totaling 3,466.76 ha
Access to utilities & benefits packages according to their focus
Exemption on land, building and urban planning taxes
(Source: Ministry for the Public Works, Development and Administration, April 2024)
24
14
8 27
5
9
18
7
Industrial parks
Investment opportunities
Digitalization of the agriculture sector Irrigation infrastructure, drainage and
soil erosion Mechanization and the extensive use
of modern technology Collecting, storage systems and
processing of agriculture products The Organic Farming segment
Romania is the country with the highest number of farmers in the EU, amounting to almost 3.5 million.
Romania is one of the biggest producers of cereals in the EU and the largest producer of sunflower seeds, honey and plums
The area in Romania used for agriculture constitutes almost 13.5 million ha
23% of the Romanian labour force are employed in agriculture, which is the highest percentage of people employed in agriculture in the EU
(Source: Eurostat)
16.8 15.5 15.4
17.2 18.6 19.0
16.8
21.1 22.2
23.8
11.0 9.8 10.1
11.6 13.2 13.3
10.9
15.0 14.6 14.7
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Market size evolution (Bn €)
Total Crop output
Agriculture
Energy
Romania will include in its national system for energy production the small modular reactors (SMR) by 2028, thus strengthening the partnership with the USA in the civil nuclear field.
Future projects with Government Support
Offshore wind parks of 300 MW Power Plants Combined Cycle Gas
Turbine Smart grids and digitalization of
electrical transport network Photovoltaics parks of 700 MW
Romanian renewable energy market
Bioenergy Solar energy Wind
Hydropower Hydrogen Nuclear
Large companies for new investments (clients/suppliers)
Largest IT&C companies in Romania
INDUSTRY SIZE KEY PLAYERS NEW KEY PROJECTS
Key facts for top tech oriented industries in 2022
Premium Aerotec €100 M investment Sonaca €100 M investment Airbus Helicopters €15 M investment UAC Europe €100 M investment
€678.9 M
AEROSPACE
€15.8 Bn
Amazon €120 M new corporate office to develop innovations across areas like product safety, compliance, cloud computing, machine learning, and information security (2023)
Siemens has opened a regional service hub in the field of energy, IT and cyber security (2022)
Siemens software developers worked on the Mars Rover Microsoft opened a Technology Development Center in
Iasi (2020)
IT&C
AUTOMOTIVE
€31 Bn
Dacia €60 M project for the manufacture of a new model Ford Otosan €490 M project to produce electric cars Nokian Tyres €650 M new passenger car tire factory Daimler (Star Assembly) €135 M e-vehicle engine factory
(starting 2024) Continental €180 M investment in 2022 (R&D extension
center & megafactory in Timisoara)
InvestRomania in a nutshell
“one-stop-shop” for foreign investors, assisting and advising international companies for
project implementation in the country
Promoting and facilitating foreign investment in Romania
Main interface between foreign companies and central / local authorities
Assisting worldwide entrepreneurs in project implementation
Tailored and individually custom-made solutions for
developing new or current units
Consultancy and guidance during all stages of the decisional process
(state aid & fiscal incentives)
InvestRomania hosts the Romanian National Contact Point for Responsible Business Conduct (NCP) responsible with encouraging the observance of the OECD Guidelines for Multinational Enterprises and related information dissemination within the business communities and others interested parties.
National Contact Point
National Contact Point for Responsible Business Conduct for the OECD Guidelines for Multinational Enterprises https://mneguidelines.oecd.org/ncps/
The National Contact Point for Responsible Business Conduct (NCP) for the implementation of the recommendations made by the Organization for Economic Cooperation and Development (OECD) in the Guidelines for Multinational Enterprises was established by Government Decision no. 420 of May 12, 2005. The mandate of the National Contact Point for Responsible Business Conduct, presented in the Guidelines for Multinational Enterprises of the Organization for Economic Cooperation and Development (OECD) is two fold: Promote and increase awareness on the OECD Guidelines for Multinational Enterprises and handle enquiries by organizing and
participating in events related to RBC to raise awareness of the Guidelines and to address questions about the Guidelines Provide a grievance mechanism to resolve cases (known as “specific instances”) relating to non observance of the recommendations
of the Guidelines
The National Contact Point for Responsible Business Conduct provides a discussion forum and supports the business community, the employer’s organizations and other interested parties in reviewing the subject matter in an effective and timely manner and in accordance with the legislation in force. Contact National Contact Point for Responsible Business Conduct E-mail: pnc@investromania.gov.ro
The OECD Guidelines for Multinational Enterprises on Responsible Business Conduct
The OECD Guidelines for Multinational Enterprises on Responsible Business Conduct contains a series of recommendations for national governments of multinational enterprises, voluntary principles and standards for responsible business conduct in a global level, in accordance with the existing legislation.
The Guidelines aim to ensure that the operations of these enterprises are in harmony with government policies, to strengthen the basis of mutual confidence between enterprises and the societies in which they operate, to help improve the foreign investment climate and to enhance the contribution to sustainable development made by multinational enterprises. The OECD Guidelines for Multinational Enterprises on Responsible Business Conduct cover fields such as: Employment and Industrial Relations Environment Human Rights Combating Bribery, Bribe Solicitation and Extortion Consumers Interests Science and technology Competition Taxation
“OECD GUIDELINES FOR MULTINATIONAL ENTERPRISES ON RESPONSIBLE BUSINESS CONDUCT” can be downloaded at: https://read.oecd-ilibrary.org/finance-and-investment/oecd-guidelines-for-multinational-enterprises-on-responsible- business-conduct_81f92357-en#page1
GOVERNMENT OF ROMANIA Romanian Agency for Investment
and Foreign Trade
9-11 Promoroaca Street, District 1 Bucharest, Romania
E-mail: investromania.gov.ro
office@investromania.gov.ro
THE ROMANIAN AGENCY FOR INVESTMENT AND FOREIGN TRADE
* INS / NIS (Institutul Național de Statistică / The National Institute of Statistics)
** BNR / NBR (Banca Națională a României / The National Bank of Romania)
***ABSL - Asociația Business Service Leaders în Romania / Association of Business Service Leaders in Romania
KEYPOINTS
Investors are looking for competitive profit margins and a favorable business climate for the development of
medium and long-term projects.
Romania is an attractive business destination, that can offer a competitive Return On Investment. That is why it
is most vital to promote and capitalize on the competitive advantages of our country that can place us ahead of
our regional peers in attracting foreign investment.
Economy on the rise:
GDP
Following a contraction to -3.7% in 2020, the Romanian economy has returned to a positive trend starting
with 2021, an economic growth of 5.8% compared to 2020 (according to the *NIS, December 21, 2022).
In 2022 the GDP went up by 4.7%, compared to 2021 (according to the *NIS, April 7, 2023).
Romania ranks 12th in the EU27 in terms of GDP growth in 2022 compared to 2021, up by 3 positions
compared to the previous year when it ranked 15th (according to Eurostat dataset, September 20, 2023).
In Q2 2024, the GDP registered an increase by 0.1% compared to Q1 2024. In Q2 2024 vs. Q2 2023 the
GDP increased by 0.8% for both unadjusted and seasonally adjusted series (according to the *NIS, August
14, 2024).
In Q1 2024 compared to Q1 2023, Romania’s GDP had increased by 1.8%, ranking 7th in the EU27. In
Q1 2024 compared to Q4 2023, Romania’s GDP had increased by 0.5%, ranking the 8th position in the
EU27 (according to Eurostat dataset, June 5, 2024).
In S1 2024, as compared to S1 2023, the GDP increased by 0.7% for the unadjusted series and by 1.5 %
for the seasonally adjusted series (according to the *NIS, August 14, 2024).
In 2023, the estimated Gross Domestic Product was, in real terms, higher by 2,1%, as compared to 2022
(according to the *NIS, April 9, 2024).
According to the Spring Economic Forecast 2024 of the National Strategy and Forecast Commission , an
economic advance of 3.4% is expected for 2024. On medium term, the forecast is: 4.0% in 2025, 4.4%
in 2026 and 4.1% in 2027 (The medium-term forecast 2024-2027, spring version 2024).
The Gross Domestic Product at market prices in 2023: EUR 324.6 billion (Eurostat dataset July 10, 2024).
THE ROMANIAN AGENCY FOR INVESTMENT AND FOREIGN TRADE
* INS / NIS (Institutul Național de Statistică / The National Institute of Statistics)
** BNR / NBR (Banca Națională a României / The National Bank of Romania)
***ABSL - Asociația Business Service Leaders în Romania / Association of Business Service Leaders in Romania
FDI
In 2020 the COVID-19 pandemic highly impacted the domestic economy, but in 2021 Romania's foreign
direct investment began to soar together with the economic recovery. Thus, in 2021, the inward FDI
registered 8,940 million euros, which is approximately three times higher as against 2020 (197.5%)
(according to **NBR Report - ”Foreign Direct Investment in Romania in 2021”).
FDI stock at December 31st 2021 was EUR 100.3 millions.
In 2022, FDI amounted EUR 10,039 million, up by 12.3% compared to 2021 (according to **NBR Report
”Foreign Direct Investment in Romania in 2022”, published in September 2023). This value exceeds the
record level of 2008 (EUR 9,210 million).
FDI stock at December 31, 2022 was EUR 107.9 billion.
In January-June 2024, FDI amounted EUR 3,219 million (compared with EUR 2,801 million in January
– June 2023) (according to the **NBR’s press release „Balance of payments and external debt - June
2024”, August 13, 2024”). (increased by 14,92%).
FDI stock at June 30, 2024 was EUR 116,939.94 millions. (**NBR - Interactive database, August 15,
2024).
Non-residents’ direct investmente in Romania in 2023 totalled EUR 6594 million, of which equity
(including the provisional net reinvestment of earnings) recorded net values of EUR 1065 million. (NBR
- Monthly report, March 2024)
Inflation
The annual inflation rate in July 2024 compared to July 2023 was 5.4% (according to the *NIS, August
12, 2024).
The annual inflation rate in July 2024 compared to July 2023 measured by the HICP was 5.8% (HICP -
The Harmonised Index of Consumer Prices = indicator for determining inflation across the EU)
(according to the *NIS, August 12, 2024).
Unemployment rate
In June 2024, the unemployment rate was 5.5% on the seasonally adjusted series. The number of
unemployed (aged 15-74 years) estimated for June 2024 was of 447.1 thousand persons (according to the
*NIS, August 1, 2024).
Unemployment rate in Q1 2024 was 5.3%, decreasing as against the one recorded in the fourth quarter of
2023 by 0.5 percentage points (according to the *NIS, June 14, 2024).
THE ROMANIAN AGENCY FOR INVESTMENT AND FOREIGN TRADE
* INS / NIS (Institutul Național de Statistică / The National Institute of Statistics)
** BNR / NBR (Banca Națională a României / The National Bank of Romania)
***ABSL - Asociația Business Service Leaders în Romania / Association of Business Service Leaders in Romania
Others
Romania owns 114 titled industrial parks - with both private and public ownership, 26 greenfield, 14
under construction and 76 operational, with the surface totalling of 3,497.67 ha (M.D.L.P.A. - Ministry
of Regional Development and Public Administration, July 2, 2024).
In the Speedtest Global Index ranking (July 2024), Romania holds the 13th position worldwide out of
162 countries and the 4th in EU in terms of internet speed at fixed connection (a speed of 203.54 Mbps
for download and 136.62 Mbps for upload data) (Speedtest Global Index ranking, July 2024).
As for the mobile connection, Romania ranks 41th out of 111, with a speed of 62.50 Mbps for download
and 14.22 Mbps for upload data (Speedtest Global Index ranking, July 2024).
Romania enjoys one of the largest domestic markets in Central and Southeast Europe, being strategically
positioned at the cross-roads of the traditional commercial and energy routes between the EU27, Asia
and the CIS countries (Commonwealth of Independent States). Romania holds 1/3 of the Danube river,
200 km sea shore, as well as the largest and deepest port at the Black Sea – Constanta. Our country ranks
8th in terms of size and 6th in terms of population in the EU27, with almost 19 million inhabitants.
Romania offers those aiming development and growth expansion access to one of the largest single
markets in the world. The entrepreneurs who consider our country for investment development can
benefit from all the advantages deriving from the European investment status.
Romania is acknowledged a safe country, a fact confirmed by the 0.000 impact of terrorism value of the
global index of terrorism ("no impact" category) - according to the annual report "Global Terrorism Index
2024", published by the Institute for Economy and Peace (IEP).
Romania has joined the group of countries that offer digital nomad visas to remote workers.
State Aid
State aid scheme GD no. 300/2024 with the objective of regional development by stimulating the
realization of investments
2024-2026 Total Budget: ~ € 450 Mill.
Annual Budget: ~ € 150 Mill.
Minimum EUR 10 M investment in eligible costs
Managed by: The Ministry of Finance
Eligible expenses:
any type of new constructions,
technical installations, new machines and equipment
depreciable assets associated with the initial investment such as patents, licenses, know-
how or other intellectual property rights
THE ROMANIAN AGENCY FOR INVESTMENT AND FOREIGN TRADE
* INS / NIS (Institutul Național de Statistică / The National Institute of Statistics)
** BNR / NBR (Banca Națională a României / The National Bank of Romania)
***ABSL - Asociația Business Service Leaders în Romania / Association of Business Service Leaders in Romania
The beneficiary must secure a financial contribution of at least 25% of the eligible costs, either
through his own resources or through external financing, in a form that is not subject to any other
public aid.
The investment must be maintained for at least 5 years after its completion.
State aid scheme GEO no. 68/2023 ConstructPlus - Financial support of investments for the
establishment and/or development of production capacities for construction products and materials
2023-2026 Total Budget: ~ € 596 Mill.
2024 Budget: ~ € 149 Mill
Managed by: The Ministry of Economy, Entrepreneurship and Tourism
Eligible expenses: investment in tangible assets (buildings, land, technical installations, machinery
and equipment) and intangible assets (patents, licenses, know-how or other intellectual property
rights) related to the establishment of a new unit, expanding the capacity of an existing one or
diversification of a production unit.
Maximum amount: € 50,000,000 depending on the county where the investment is located.
The investment must be maintained in the beneficiary region for a minimum of 5 years after its
completion or, at least 3 years for SMEs.
State aid scheme GD no.959/2022 for investments in the manufacturing industry acting in support of
Romanian companies to enhance the production potential for materials/products/ equipment and
services by ensuring the financing and production capabilities
Minimum 3M € investment - Eligible costs include: starting a new unit, expanding the capacity of
an existing unit, diversifying the production of a unit through products that were not previously
manufactured in the unit, fundamental change of the general production process of an existing unit,
creating new jobs
Taxation:
16% standard corporate tax
0% tax for the profit reinvested in new technological equipment
0% - corporate tax relief on reinvested profit has been extended to cover investments made in assets used
in production and processing activity and in assets representing reinvested profit
0% - corporate tax relief on expenses incurred in relation to theoretical/practical training of students in
vocational and technical education, as well as dual (practical and academic) pre-university and university
education, including depreciation of fixed assets or investments used for this purpose
8% dividend rate
19% - standard VAT rate
THE ROMANIAN AGENCY FOR INVESTMENT AND FOREIGN TRADE
* INS / NIS (Institutul Național de Statistică / The National Institute of Statistics)
** BNR / NBR (Banca Națională a României / The National Bank of Romania)
***ABSL - Asociația Business Service Leaders în Romania / Association of Business Service Leaders in Romania
5% VAT – will apply to:
- Supply of housing below the 450,000 lei threshold, if, before 1 January 2023, parties signed
contracts mentioning the payment in advance for such properties
- Supply of housing between 600,000 lei and 700,000 lei, if, before 1 January 2023, parties
signed contracts mentioning the payment in advance for such properties
9% VAT rate for: food delivery, water supply for irrigation in agriculture, delivery of fertilizers and
pesticides used in agriculture, seeds and other agricultural products intended for sowing or planting, as
well as supply of services of the specific type used in the agricultural sector, water supply and sewerage
services;
19% TVA - excise duties for alcoholic beverages and cigarettes
10% income tax for the employee
Social contributions for the employee: 35% (25% CAS - pension, 10% CASS - health)
Employer contributions: 2.25% work insurance contribution
Basis for calculating CASS (social health insurance contribution):
- The social health insurance contribution is calculated based on the obtained net income
- The calculation basis of CASS cannot be lower than minimum 6 salaries nor higher than 60 salaries
Tax exemption on land, construction and urban planning for investments implemented in industrial,
science or technology parks
Starting 2024
VAT
The VAT rate increases from 9% to 19% for:
- foods with added sugar (more than 10g/100g product), except cookies and biscuits
- delivery of alcohol-free beer
The VAT rate increases from 5% to 9% for:
- the delivery of housing with usable surface area of a maximum of 120 sqm, that does not exceed
600,000 lei (exclusive of VAT)
- delivery and installation of photovoltaic panels, solar thermal panels, heat pumps and other high-
efficiency, low-emission heating systems, including installation kits, as well as all necessary
components purchased separately for housing/central public administration buildings or local
administration buildings with the exception of commercial companies;
- the delivery and installation of components for the repair and/or expansion of systems as a
component part of construction deliveries, or as extra options when delivering a construction;
- access to fairs, exhibitions, cinemas and cultural events, other than tax-exempt ones
- delivery of high-quality food, i.e. mountain, eco, or traditional products
THE ROMANIAN AGENCY FOR INVESTMENT AND FOREIGN TRADE
* INS / NIS (Institutul Național de Statistică / The National Institute of Statistics)
** BNR / NBR (Banca Națională a României / The National Bank of Romania)
***ABSL - Asociația Business Service Leaders în Romania / Association of Business Service Leaders in Romania
CASS (Health Contribution)
Starting with the income related to January 2024, holiday vouchers and meal vouchers are subject to
CASS and thus, in addition to the 10% tax, they will also be subject to the 10% health contribution.
Profit tax
A Minimum tax on turnover has been introduced starting with the fiscal year/amended fiscal year 2024,
for commercial companies paying profit tax (so not for other legal entities such as foundations,
associations, private schools/universities/tenant associations etc.), if the turnover exceeds EUR 50 million
in the previous year of calculation (for example, in 2023 for tax assessment in 2024). Companies in this
category, if in the calculation year they determine a profit tax lower than the minimum turnover tax, are
required to pay profit tax at the level of the minimum turnover tax. Businesses that exclusively carry out
activities involving distribution/supply/transport of electricity and natural gas and that are
regulated/licensed by the National Energy Regulatory Authority are exempt from this tax regime.
Additional tax on turnover for credit institutions - Romanian legal entities and Romanian branches of
foreign legal entities
(1) Credit institutions, in addition to the profit tax, must pay a turnover tax calculated by applying a
rate of 2% (in 2024 and 2025), and 1% (from 2026) on the turnover.
(2) The turnover subject to tax includes:
interest income;
income from dividends;
revenues from taxes and commissions;
gains (losses) from the derecognition of financial assets and liabilities that are not valued at fair
value through profit or loss, net;
gains or losses related to financial assets and liabilities held for trading, net;
gains or losses related to financial assets not intended for trading, necessarily valued at fair
value through profit or loss, net;
gains or losses related to financial assets and liabilities designated as being valued at fair value
through profit or loss, net;
gains or losses from hedge accounting, net;
exchange rate differences (gain or loss), net;
gains or losses from the derecognition of non-financial assets, net;
other operating income.
Thus, credit institutions will have to pay the two taxes (profit tax and additional turnover tax)
simultaneously, so they will pay the sum of the profit tax and the turnover tax with the rate of 1%, not
just one of these obligations. In addition, in the case of these institutions, it does not matter if the turnover
is lower or higher than EUR 50 million. The turnover tax will be payable on the 25th of the month
following a quarter, and for the last quarter up to and including March 25th of the following year. The
turnover tax expense is not deductible when calculating the taxable profit.
Specific tax for the oil and natural gas sector
- Legal entities with activities in the oil and natural gas sectors, which in the previous year register a
turnover of over EUR 50,000,000 will pay a specific turnover tax in addition to the profit tax, at a rate
of 0.5% of turnover. The calculation base is established identically to the calculation base of the
minimum turnover tax detailed above.
THE ROMANIAN AGENCY FOR INVESTMENT AND FOREIGN TRADE
* INS / NIS (Institutul Național de Statistică / The National Institute of Statistics)
** BNR / NBR (Banca Națională a României / The National Bank of Romania)
***ABSL - Asociația Business Service Leaders în Romania / Association of Business Service Leaders in Romania
- The specific turnover tax is a non-deductible expense when determining the fiscal result of these
companies.
Microenterprise income tax The tax rates on the income of micro-enterprises:
- 1%, for micro-enterprises that earn income that does not exceed 60,000 euros and that do not carry
out the activities for which the 3% rate is due
- 3%, for micro-enterprises that:
1. earn income of over 60.000 de euro;
or
2. carry out activities corresponding to CAEN codes: 5821 - Computer games publishing activities,
5829 - Other software product publishing activities, 6201 - Custom software development
activities (customer oriented software), 6209 - Other service activities on information
technology, 5510 - Hotels and other similar accommodation facilities, 5520 - Holiday and short-
term accommodation facilities, 5530 - Caravan parks, campsites and camps, 5590 - Other
accommodation services, 5610 - Restaurants, 5621 - Food activities (catering) for events, 5629
- Other food services n.e.c., 5630 - Bars and other beverage serving activities, 6910 - Legal
activities - only for companies with legal status that are not fiscally transparent entities,
constituted by lawyers according to legislation, 8621 - General medical assistance activities,
8622 - Specialized medical assistance activities, 8623 - Dental assistance activities, 8690 - Other
activities related to human health.
Income tax from wages (IT, Construction, Agriculture, Food Industry)
Exemptions for IT, construction, agriculture and food industry activities have been eliminated or reduced.
IT Sector – for software creation activities
- Exemption on the income for the employees involved in software creation that do not exceed a
monthly gross income of 10,000 lei inclusive. The exemption applies where the basic function is
located, based on an individual employment contract. The part of the monthly gross income that
exceeds 10,000 lei does not benefit from tax benefits.
- Also, for the exempted income, they will be exempted from paying the contribution to Pillar II for
pensions (3.75% for 2023 and 4.75% starting 2024), but they will be able to opt for paying the entire
contribution (25%), based on a written option to the employer.
Construction
- Exemption on the income for the employees involved in construction activities that do not exceed a
monthly gross income of 10,000 lei inclusive. The exemption applies where the basic function is
located, based on an individual employment contract. The part of the monthly gross income that
exceeds 10,000 lei does not benefit from tax benefits.
- 10% health contribution (CASS).
- 20.25% social insurance contribution (individual pension contributions-CAS) - reduced by 4.75%
compared to the standard rate of 25%
Agriculture and food industry
- Exemption on the income for the employees involved in agriculture and food industry activities that
do not exceed a monthly gross income of 10,000 lei inclusive. The exemption applies where the basic
THE ROMANIAN AGENCY FOR INVESTMENT AND FOREIGN TRADE
* INS / NIS (Institutul Național de Statistică / The National Institute of Statistics)
** BNR / NBR (Banca Națională a României / The National Bank of Romania)
***ABSL - Asociația Business Service Leaders în Romania / Association of Business Service Leaders in Romania
function is located, based on an individual employment contract. The part of the monthly gross income
that exceeds 10,000 lei does not benefit from tax benefits.
- 10% health contribution (CASS).
- 20.25% social insurance contribution (individual pension contributions-CAS) - reduced by 4.75%
compared to the standard rate of 25%
The facilities specific to all these industries are valid until 31 December 2028, including those for employees
in the IT sector.
Human resource:
Skilled labour force at competitive prices:
Starting July 1st 2024, the gross national guaranteed minimum wage is 3.700 lei/month established as
income, without including allowances, increments and other additions. These provisions do not apply in
the construction sector, agriculture and the food industry.
The projects we are aiming at attracting are no longer labor intensive as we are shifting towards high
value-added investment projects.
In the construction field, the guaranteed minimum gross basic salary is 4,582 lei per month, without
including other bonuses, for a regular work schedule, amounting 27.714 lei/hour
In the agriculture sector and food industry, the guaranteed minimum gross basic salary is 3,436 lei
per month, without including other bonuses, for a regular work schedule, amounting 20.782 lei/hour.
In June 2024, the gross average income was 8,480 lei, with 125 lei higher against May 2024 (+1,5%)
(according to the *NIS/August 12, 2024).
The highest values of the average net earnings were recorded in publishing activities (11614 lei), while
the lowest in manufacture of wearing apparel (2798 lei) (according to the *NIS/August 12, 2024).
In Q1 2024 compared to Q4 2023, the adjusted hourly labour cost (working days adjusted) registered an
increase rate of 1.85%. In Q1 2024 compared to Q1 2023, the adjusted hourly labour cost (working days
adjusted) registered an increase rate of 16.45% (according to the *NIS/June 4, 2024).
The hourly labour cost in 2023 was 11 euros, the second lowest after Bulgaria (9.3 euro), and 2.9 times
lower than the EU27 average (EUR 31.8). The hourly labour costs by main activities: construction (8.9
euros), industry (10.2 euros), business economy (10.8 euros), services (11.6 euros), mainly non-business
(11.8 euros) (according to Eurostat - March 2024).
Introduction of the dual education at secondary school level - in this sense the Vocational Training
Authority in Dual System was established and partnerships were created with the major universities in
the country.
THE ROMANIAN AGENCY FOR INVESTMENT AND FOREIGN TRADE
* INS / NIS (Institutul Național de Statistică / The National Institute of Statistics)
** BNR / NBR (Banca Națională a României / The National Bank of Romania)
***ABSL - Asociația Business Service Leaders în Romania / Association of Business Service Leaders in Romania
Romania has a significant pool of educated talent, enjoying a great creative potential and a highly skilled
workforce; 97% of Romanian high school students learn at least two foreign languages, 90% of graduates
are English speakers. Many of them also speak German, French, Spanish or Italian - which indicates a
good ability to cross the cultural and linguistic barriers.
49.0% of persons aged 18-69 years know at least one foreign language (according to *NIS/December 8,
2023).
The number of IT engineers per capita is higher in Romania than in India, the United States, Russia or
China.
Sectors:
Automotive
Key sector, enjoying a long tradition in Romania
With a contribution of aprox. 12% to the GDP, the turnover registered by the automotive sector was EUR
31 billion in 2022
In 2021, the value of exports from the automotive sector was 21.8 billion Euros, representing 29.8% of
the national exports. In 2022, the automotive sector contributed to 29% of total national exports.
2022 came as a record year for car production in Romania, with 509,915 units (DACIA 314,678 units
and FORD 195,237 units). According to ACEA - State of the EU auto industry, full-year 2022, Romania's
car production increased by 20.6% in 2022, Romania ranking 6th of EU vehicle manufacturers top.
In 2023, 513,050 units were assembled (DACIA 322,086 units and FORD OTOSAN 190,964 units)
(ACAROM), a new record for the Romanian automotive industry: production in 2023 was 0.7% higher
against 2022, 22% higher against 2021 and 17% higher against 2020. Even compared to 2019 - an
unaffected by the pandemic and the semiconductor crisis year - an increase of 4.7% was registered.
It is expected that 2024 will be a new record year for Romania's car production, given the fact that new
products will enter the assembly lines at both plants, Dacia and Ford Otosan - the third generation of
Dacia Duster and the facelift version of Ford’s Puma SUV, in addition to the new Transit and Tourneo
Courier whose assembly began at the end of 2023.
More than 630 supplying companies, with more than 230.000 direct employees
The regions with significant supplier network: Argeș (Dacia), Oltenia (Ford), West, Center, North-West
(export Germany)
The R&D in the domestic automotive sector continues to grow by new investments and relocations of
high tech activities (Continental, Renault, Bosch, Porsche, Delphi, Siemens, Schaeffler)
Top 3 exporting companies: DACIA, FORD, DAIMLER (Star Assembly)
Two of the world's largest car manufacturers are present on the domestic market: Dacia Renault and Ford;
Romania is profiling itself as one of the regional hubs in automotive
The highest quality level in terms of auto parts manufacturing in Eastern Europe
The Romanian Automotive Industry - suppliers: Robert Bosch, Continental AG, Magna International,
Faurecia, Adient, Delphi, Valeo, TRW, Lear Co., Yazaki Corp, Sumitomo, Calsonic Kansei, Autoliv
THE ROMANIAN AGENCY FOR INVESTMENT AND FOREIGN TRADE
* INS / NIS (Institutul Național de Statistică / The National Institute of Statistics)
** BNR / NBR (Banca Națională a României / The National Bank of Romania)
***ABSL - Asociația Business Service Leaders în Romania / Association of Business Service Leaders in Romania
Source: ACAROM (Association of Automotive Manufacturers of Romania)
Services sector - SSC, BPO, ITO, R&D (Shared Services Center, Business Process Outsourcing,
Information Technology Outsourcing, Research and Development)
Growth driver and an important contributor to Romania's GDP (2-2.5% of GDP and 5.4% of GDP in
2021) (***ABSL)
Romania is one of the most appealing near-shore locations, capitalizing on a sound educational system,
with a strong focus on IT, finance and accounting, thus providing a steady and competitive flow of skilled
resources to meet the growing demand of SSC/BPO entities
Some of the most preeminent international companies in the field, including global players like IBM,
HP, Oracle, Microsoft, Adobe, Endava etc.
131,000 employees in BSS in 2020 (1.5% of the total employees in the Romanian economy), reaching
aprox.180,000 employees in 2021.
280 companies in BSS;
1st position in mature outsourcing markets
More than 64,000 university graduates form the talent pool of the sector (Source ***ABSL)
Cultural compatibility and wide range of foreign language skills, covering English, French, Spanish,
Italian, German, Portuguese, Hungarian, Czech, Slovak, Bulgarian and Russian, provide a competitive
edge to the Romanian work force (Source ***ABSL);
€4.5 Bn industry size in 2020 and €9 Bn in 2021 (***ABSL, June 2022);
Wages offered at the entry level in the business services industry are 30% higher compared to the
minimum wage, for employees with higher education. (Source ***ABSL)
About 45% of the companies in the industry are SSCs (Shared Service Centers – companies which
clusters certain activities, such as IT, accounting, purchasing, etc. in an entity specialized in shared
services). 44% are active companies in the BPO industry (Business Process Outsourcing – specializes in
providing services to external customers), the remaining 11% of companies are hybrid. Most companies
operating on the local market come from France, Germany, Romania and USA. (Source ***ABSL -
January 2020);
Estimated number of jobs in the next 5 years: 220,000.
IT&C
Significant contributor to Romania's GDP in 2022 (1.3% of GDP growth)
IT&C - 7.1% to the GDP formation in 2023 (estimated data, according to the *NIS, April 9, 2024)
IT&C - Q1 2023: 8.0% contribution to the GDP formation and 0.5% to the GDP growth (according to
the *NIS, July 7, 2023)
THE ROMANIAN AGENCY FOR INVESTMENT AND FOREIGN TRADE
* INS / NIS (Institutul Național de Statistică / The National Institute of Statistics)
** BNR / NBR (Banca Națională a României / The National Bank of Romania)
***ABSL - Asociația Business Service Leaders în Romania / Association of Business Service Leaders in Romania
IT&C - Q2 2023: 7.0% contribution to the GDP formation and 0.4% to the GDP growth (according to
the *NIS, October 12, 2023)
IT&C - S1 2023: 7.5% contribution to the GDP formation and 0.4% to the GDP growth (according to the
*NIS, September 7, 2023)
In recent years, software development outsourcing has been increasingly popular in Romania. Romania’s
IT market value reached EUR 6 billion in 2022 (Rinf.tech, ”A Complete Guide to IT Outsourcing in
2023”)
Technology is considered a primary growth driver for Romania, enjoying a EUR 20 million investment
yearly growth, according to ANIS (Employers’ Association of the Software and Services Industry)
The IT&C services sector fostered a 9% yearly growth rate of the large companies’ revenue, 73% of the
revenue being generated by companies with foreign capital, according to the ***ABSL
Romania has all the prerequisites to remain a center of excellence in IT. The largest national and foreign
IT&C companies have their headquarters in Bucharest
64% of Romania’s IT firms are financed by outside investors, demonstrating the country’s appeal to
overseas investors. (Rinf.tech, ”A Complete Guide to IT Outsourcing in 2023”)
Lots of innovation labs and tech hubs are in the main cities in Romania: Bucharest, Cluj-Napoca, Iasi,
Brasov, Timisoara and Sibiu
Romania has the sixth highest number of certified IT specialists per capita in the world, ahead of countries
like the USA, India or China (Source – microsoft.com, 2022)
The IT specialists represent a significant category in Romania's economic ecosystem, bringing their
value-added contribution to the development of other sectors as well through a horizontal implementation
of the concept of "Industry 4.0";
The development of the IT sector has made it a enabler for the automotive sector, the aerospace industry,
the chemical industry, agriculture and many others. By creating new partnerships or consolidating the
existing ones between universities and the business environment, we become part of the Industry 4.0
revolution. Thus, Romania is increasingly positioning itself as a regional hub in the IT field.
Romania ranks 3rd in the Digital Nomad Index by CircleLoop’s with one of the fastest-growing
information technology markets in Central and Eastern Europe, enjoying some of the cheapest average
monthly costs of fixed-line broadband packages ($8.15) and a cheap and reliable internet access.
University graduates are perfect candidates for IT outsourcing. Some of the most used technologies in
Romania: JavaScript, Java, Python, C#, .NET, C++, C, SQL, PHP and cybersecurity. (Rinf.tech, ”A
Complete Guide to IT Outsourcing in 2023”)
THE ROMANIAN AGENCY FOR INVESTMENT AND FOREIGN TRADE
* INS / NIS (Institutul Național de Statistică / The National Institute of Statistics)
** BNR / NBR (Banca Națională a României / The National Bank of Romania)
***ABSL - Asociația Business Service Leaders în Romania / Association of Business Service Leaders in Romania
R&D
Pillar of strength in putting Romania on the map of innovation
0% income tax for employees in R&D and innovation, in compliance with the Romanian current
legislation, for all persons included in a research-development and innovation project team
In the near future, Romania will turn into a regional R&D center, capitalizing on its enormous capacity
to innovate, the latest generation ELI laser being produced here.
Numerous international companies, including Google, Amazon, Samsung, Huawei and Accenture have
established R&D facilities in Romania.
Construction:
8.0% to the GDP formation in 2023 (estimated data, according to the *NIS, April 9, 2024)
Until December 31st, 2028 the tax regime for income in construction sector is:
o minimum gross wage for construction: lei 4,582/per month (without including additional
performance bonuses)
o the income from the salaries are exempted from the payment of the income tax, within the 10,000
lei from the gross salary. The exemption applies where the basic function is located, based on an
individual employment contract. The part of the monthly gross income that exceeds 10,000 lei
does not benefit from tax benefits.
o 10% health contribution (CASS)
o 2.25% work insurance contribution (CAM)
o 20.25% social insurance contribution (individual pension contributions-CAS) - reduced by 4.75%
compared to the standard rate of 25%
THE ROMANIAN AGENCY FOR INVESTMENT AND FOREIGN TRADE
* INS / NIS (Institutul Național de Statistică / The National Institute of Statistics)
** BNR / NBR (Banca Națională a României / The National Bank of Romania)
***ABSL - Asociația Business Service Leaders în Romania / Association of Business Service Leaders in Romania
KEYPOINTS
Investors are looking for competitive profit margins and a favorable business climate for the development of
medium and long-term projects.
Romania is an attractive business destination, that can offer a competitive Return On Investment. That is why it
is most vital to promote and capitalize on the competitive advantages of our country that can place us ahead of
our regional peers in attracting foreign investment.
Economy on the rise:
GDP
Following a contraction to -3.7% in 2020, the Romanian economy has returned to a positive trend starting
with 2021, an economic growth of 5.8% compared to 2020 (according to the *NIS, December 21, 2022).
In 2022 the GDP went up by 4.7%, compared to 2021 (according to the *NIS, April 7, 2023).
Romania ranks 12th in the EU27 in terms of GDP growth in 2022 compared to 2021, up by 3 positions
compared to the previous year when it ranked 15th (according to Eurostat dataset, September 20, 2023).
In Q2 2024, the GDP registered an increase by 0.1% compared to Q1 2024. In Q2 2024 vs. Q2 2023 the
GDP increased by 0.8% for both unadjusted and seasonally adjusted series (according to the *NIS, August
14, 2024).
In Q1 2024 compared to Q1 2023, Romania’s GDP had increased by 1.8%, ranking 7th in the EU27. In
Q1 2024 compared to Q4 2023, Romania’s GDP had increased by 0.5%, ranking the 8th position in the
EU27 (according to Eurostat dataset, June 5, 2024).
In S1 2024, as compared to S1 2023, the GDP increased by 0.7% for the unadjusted series and by 1.5 %
for the seasonally adjusted series (according to the *NIS, August 14, 2024).
In 2023, the estimated Gross Domestic Product was, in real terms, higher by 2,1%, as compared to 2022
(according to the *NIS, April 9, 2024).
According to the Spring Economic Forecast 2024 of the National Strategy and Forecast Commission , an
economic advance of 3.4% is expected for 2024. On medium term, the forecast is: 4.0% in 2025, 4.4%
in 2026 and 4.1% in 2027 (The medium-term forecast 2024-2027, spring version 2024).
The Gross Domestic Product at market prices in 2023: EUR 324.6 billion (Eurostat dataset July 10, 2024).
THE ROMANIAN AGENCY FOR INVESTMENT AND FOREIGN TRADE
* INS / NIS (Institutul Național de Statistică / The National Institute of Statistics)
** BNR / NBR (Banca Națională a României / The National Bank of Romania)
***ABSL - Asociația Business Service Leaders în Romania / Association of Business Service Leaders in Romania
FDI
In 2020 the COVID-19 pandemic highly impacted the domestic economy, but in 2021 Romania's foreign
direct investment began to soar together with the economic recovery. Thus, in 2021, the inward FDI
registered 8,940 million euros, which is approximately three times higher as against 2020 (197.5%)
(according to **NBR Report - ”Foreign Direct Investment in Romania in 2021”).
FDI stock at December 31st 2021 was EUR 100.3 millions.
In 2022, FDI amounted EUR 10,039 million, up by 12.3% compared to 2021 (according to **NBR Report
”Foreign Direct Investment in Romania in 2022”, published in September 2023). This value exceeds the
record level of 2008 (EUR 9,210 million).
FDI stock at December 31, 2022 was EUR 107.9 billion.
In January-June 2024, FDI amounted EUR 3,219 million (compared with EUR 2,801 million in January
– June 2023) (according to the **NBR’s press release „Balance of payments and external debt - June
2024”, August 13, 2024”). (increased by 14,92%).
FDI stock at June 30, 2024 was EUR 116,939.94 millions. (**NBR - Interactive database, August 15,
2024).
Non-residents’ direct investmente in Romania in 2023 totalled EUR 6594 million, of which equity
(including the provisional net reinvestment of earnings) recorded net values of EUR 1065 million. (NBR
- Monthly report, March 2024)
Inflation
The annual inflation rate in July 2024 compared to July 2023 was 5.4% (according to the *NIS, August
12, 2024).
The annual inflation rate in July 2024 compared to July 2023 measured by the HICP was 5.8% (HICP -
The Harmonised Index of Consumer Prices = indicator for determining inflation across the EU)
(according to the *NIS, August 12, 2024).
Unemployment rate
In June 2024, the unemployment rate was 5.5% on the seasonally adjusted series. The number of
unemployed (aged 15-74 years) estimated for June 2024 was of 447.1 thousand persons (according to the
*NIS, August 1, 2024).
Unemployment rate in Q1 2024 was 5.3%, decreasing as against the one recorded in the fourth quarter of
2023 by 0.5 percentage points (according to the *NIS, June 14, 2024).
THE ROMANIAN AGENCY FOR INVESTMENT AND FOREIGN TRADE
* INS / NIS (Institutul Național de Statistică / The National Institute of Statistics)
** BNR / NBR (Banca Națională a României / The National Bank of Romania)
***ABSL - Asociația Business Service Leaders în Romania / Association of Business Service Leaders in Romania
Others
Romania owns 114 titled industrial parks - with both private and public ownership, 26 greenfield, 14
under construction and 76 operational, with the surface totalling of 3,497.67 ha (M.D.L.P.A. - Ministry
of Regional Development and Public Administration, July 2, 2024).
In the Speedtest Global Index ranking (July 2024), Romania holds the 13th position worldwide out of
162 countries and the 4th in EU in terms of internet speed at fixed connection (a speed of 203.54 Mbps
for download and 136.62 Mbps for upload data) (Speedtest Global Index ranking, July 2024).
As for the mobile connection, Romania ranks 41th out of 111, with a speed of 62.50 Mbps for download
and 14.22 Mbps for upload data (Speedtest Global Index ranking, July 2024).
Romania enjoys one of the largest domestic markets in Central and Southeast Europe, being strategically
positioned at the cross-roads of the traditional commercial and energy routes between the EU27, Asia
and the CIS countries (Commonwealth of Independent States). Romania holds 1/3 of the Danube river,
200 km sea shore, as well as the largest and deepest port at the Black Sea – Constanta. Our country ranks
8th in terms of size and 6th in terms of population in the EU27, with almost 19 million inhabitants.
Romania offers those aiming development and growth expansion access to one of the largest single
markets in the world. The entrepreneurs who consider our country for investment development can
benefit from all the advantages deriving from the European investment status.
Romania is acknowledged a safe country, a fact confirmed by the 0.000 impact of terrorism value of the
global index of terrorism ("no impact" category) - according to the annual report "Global Terrorism Index
2024", published by the Institute for Economy and Peace (IEP).
Romania has joined the group of countries that offer digital nomad visas to remote workers.
State Aid
State aid scheme GD no. 300/2024 with the objective of regional development by stimulating the
realization of investments
2024-2026 Total Budget: ~ € 450 Mill.
Annual Budget: ~ € 150 Mill.
Minimum EUR 10 M investment in eligible costs
Managed by: The Ministry of Finance
Eligible expenses:
any type of new constructions,
technical installations, new machines and equipment
depreciable assets associated with the initial investment such as patents, licenses, know-
how or other intellectual property rights
THE ROMANIAN AGENCY FOR INVESTMENT AND FOREIGN TRADE
* INS / NIS (Institutul Național de Statistică / The National Institute of Statistics)
** BNR / NBR (Banca Națională a României / The National Bank of Romania)
***ABSL - Asociația Business Service Leaders în Romania / Association of Business Service Leaders in Romania
The beneficiary must secure a financial contribution of at least 25% of the eligible costs, either
through his own resources or through external financing, in a form that is not subject to any other
public aid.
The investment must be maintained for at least 5 years after its completion.
State aid scheme GEO no. 68/2023 ConstructPlus - Financial support of investments for the
establishment and/or development of production capacities for construction products and materials
2023-2026 Total Budget: ~ € 596 Mill.
2024 Budget: ~ € 149 Mill
Managed by: The Ministry of Economy, Entrepreneurship and Tourism
Eligible expenses: investment in tangible assets (buildings, land, technical installations, machinery
and equipment) and intangible assets (patents, licenses, know-how or other intellectual property
rights) related to the establishment of a new unit, expanding the capacity of an existing one or
diversification of a production unit.
Maximum amount: € 50,000,000 depending on the county where the investment is located.
The investment must be maintained in the beneficiary region for a minimum of 5 years after its
completion or, at least 3 years for SMEs.
State aid scheme GD no.959/2022 for investments in the manufacturing industry acting in support of
Romanian companies to enhance the production potential for materials/products/ equipment and
services by ensuring the financing and production capabilities
Minimum 3M € investment - Eligible costs include: starting a new unit, expanding the capacity of
an existing unit, diversifying the production of a unit through products that were not previously
manufactured in the unit, fundamental change of the general production process of an existing unit,
creating new jobs
Taxation:
16% standard corporate tax
0% tax for the profit reinvested in new technological equipment
0% - corporate tax relief on reinvested profit has been extended to cover investments made in assets used
in production and processing activity and in assets representing reinvested profit
0% - corporate tax relief on expenses incurred in relation to theoretical/practical training of students in
vocational and technical education, as well as dual (practical and academic) pre-university and university
education, including depreciation of fixed assets or investments used for this purpose
8% dividend rate
19% - standard VAT rate
THE ROMANIAN AGENCY FOR INVESTMENT AND FOREIGN TRADE
* INS / NIS (Institutul Național de Statistică / The National Institute of Statistics)
** BNR / NBR (Banca Națională a României / The National Bank of Romania)
***ABSL - Asociația Business Service Leaders în Romania / Association of Business Service Leaders in Romania
5% VAT – will apply to:
- Supply of housing below the 450,000 lei threshold, if, before 1 January 2023, parties signed
contracts mentioning the payment in advance for such properties
- Supply of housing between 600,000 lei and 700,000 lei, if, before 1 January 2023, parties
signed contracts mentioning the payment in advance for such properties
9% VAT rate for: food delivery, water supply for irrigation in agriculture, delivery of fertilizers and
pesticides used in agriculture, seeds and other agricultural products intended for sowing or planting, as
well as supply of services of the specific type used in the agricultural sector, water supply and sewerage
services;
19% TVA - excise duties for alcoholic beverages and cigarettes
10% income tax for the employee
Social contributions for the employee: 35% (25% CAS - pension, 10% CASS - health)
Employer contributions: 2.25% work insurance contribution
Basis for calculating CASS (social health insurance contribution):
- The social health insurance contribution is calculated based on the obtained net income
- The calculation basis of CASS cannot be lower than minimum 6 salaries nor higher than 60 salaries
Tax exemption on land, construction and urban planning for investments implemented in industrial,
science or technology parks
Starting 2024
VAT
The VAT rate increases from 9% to 19% for:
- foods with added sugar (more than 10g/100g product), except cookies and biscuits
- delivery of alcohol-free beer
The VAT rate increases from 5% to 9% for:
- the delivery of housing with usable surface area of a maximum of 120 sqm, that does not exceed
600,000 lei (exclusive of VAT)
- delivery and installation of photovoltaic panels, solar thermal panels, heat pumps and other high-
efficiency, low-emission heating systems, including installation kits, as well as all necessary
components purchased separately for housing/central public administration buildings or local
administration buildings with the exception of commercial companies;
- the delivery and installation of components for the repair and/or expansion of systems as a
component part of construction deliveries, or as extra options when delivering a construction;
- access to fairs, exhibitions, cinemas and cultural events, other than tax-exempt ones
- delivery of high-quality food, i.e. mountain, eco, or traditional products
THE ROMANIAN AGENCY FOR INVESTMENT AND FOREIGN TRADE
* INS / NIS (Institutul Național de Statistică / The National Institute of Statistics)
** BNR / NBR (Banca Națională a României / The National Bank of Romania)
***ABSL - Asociația Business Service Leaders în Romania / Association of Business Service Leaders in Romania
CASS (Health Contribution)
Starting with the income related to January 2024, holiday vouchers and meal vouchers are subject to
CASS and thus, in addition to the 10% tax, they will also be subject to the 10% health contribution.
Profit tax
A Minimum tax on turnover has been introduced starting with the fiscal year/amended fiscal year 2024,
for commercial companies paying profit tax (so not for other legal entities such as foundations,
associations, private schools/universities/tenant associations etc.), if the turnover exceeds EUR 50 million
in the previous year of calculation (for example, in 2023 for tax assessment in 2024). Companies in this
category, if in the calculation year they determine a profit tax lower than the minimum turnover tax, are
required to pay profit tax at the level of the minimum turnover tax. Businesses that exclusively carry out
activities involving distribution/supply/transport of electricity and natural gas and that are
regulated/licensed by the National Energy Regulatory Authority are exempt from this tax regime.
Additional tax on turnover for credit institutions - Romanian legal entities and Romanian branches of
foreign legal entities
(1) Credit institutions, in addition to the profit tax, must pay a turnover tax calculated by applying a
rate of 2% (in 2024 and 2025), and 1% (from 2026) on the turnover.
(2) The turnover subject to tax includes:
interest income;
income from dividends;
revenues from taxes and commissions;
gains (losses) from the derecognition of financial assets and liabilities that are not valued at fair
value through profit or loss, net;
gains or losses related to financial assets and liabilities held for trading, net;
gains or losses related to financial assets not intended for trading, necessarily valued at fair
value through profit or loss, net;
gains or losses related to financial assets and liabilities designated as being valued at fair value
through profit or loss, net;
gains or losses from hedge accounting, net;
exchange rate differences (gain or loss), net;
gains or losses from the derecognition of non-financial assets, net;
other operating income.
Thus, credit institutions will have to pay the two taxes (profit tax and additional turnover tax)
simultaneously, so they will pay the sum of the profit tax and the turnover tax with the rate of 1%, not
just one of these obligations. In addition, in the case of these institutions, it does not matter if the turnover
is lower or higher than EUR 50 million. The turnover tax will be payable on the 25th of the month
following a quarter, and for the last quarter up to and including March 25th of the following year. The
turnover tax expense is not deductible when calculating the taxable profit.
Specific tax for the oil and natural gas sector
- Legal entities with activities in the oil and natural gas sectors, which in the previous year register a
turnover of over EUR 50,000,000 will pay a specific turnover tax in addition to the profit tax, at a rate
of 0.5% of turnover. The calculation base is established identically to the calculation base of the
minimum turnover tax detailed above.
THE ROMANIAN AGENCY FOR INVESTMENT AND FOREIGN TRADE
* INS / NIS (Institutul Național de Statistică / The National Institute of Statistics)
** BNR / NBR (Banca Națională a României / The National Bank of Romania)
***ABSL - Asociația Business Service Leaders în Romania / Association of Business Service Leaders in Romania
- The specific turnover tax is a non-deductible expense when determining the fiscal result of these
companies.
Microenterprise income tax The tax rates on the income of micro-enterprises:
- 1%, for micro-enterprises that earn income that does not exceed 60,000 euros and that do not carry
out the activities for which the 3% rate is due
- 3%, for micro-enterprises that:
1. earn income of over 60.000 de euro;
or
2. carry out activities corresponding to CAEN codes: 5821 - Computer games publishing activities,
5829 - Other software product publishing activities, 6201 - Custom software development
activities (customer oriented software), 6209 - Other service activities on information
technology, 5510 - Hotels and other similar accommodation facilities, 5520 - Holiday and short-
term accommodation facilities, 5530 - Caravan parks, campsites and camps, 5590 - Other
accommodation services, 5610 - Restaurants, 5621 - Food activities (catering) for events, 5629
- Other food services n.e.c., 5630 - Bars and other beverage serving activities, 6910 - Legal
activities - only for companies with legal status that are not fiscally transparent entities,
constituted by lawyers according to legislation, 8621 - General medical assistance activities,
8622 - Specialized medical assistance activities, 8623 - Dental assistance activities, 8690 - Other
activities related to human health.
Income tax from wages (IT, Construction, Agriculture, Food Industry)
Exemptions for IT, construction, agriculture and food industry activities have been eliminated or reduced.
IT Sector – for software creation activities
- Exemption on the income for the employees involved in software creation that do not exceed a
monthly gross income of 10,000 lei inclusive. The exemption applies where the basic function is
located, based on an individual employment contract. The part of the monthly gross income that
exceeds 10,000 lei does not benefit from tax benefits.
- Also, for the exempted income, they will be exempted from paying the contribution to Pillar II for
pensions (3.75% for 2023 and 4.75% starting 2024), but they will be able to opt for paying the entire
contribution (25%), based on a written option to the employer.
Construction
- Exemption on the income for the employees involved in construction activities that do not exceed a
monthly gross income of 10,000 lei inclusive. The exemption applies where the basic function is
located, based on an individual employment contract. The part of the monthly gross income that
exceeds 10,000 lei does not benefit from tax benefits.
- 10% health contribution (CASS).
- 20.25% social insurance contribution (individual pension contributions-CAS) - reduced by 4.75%
compared to the standard rate of 25%
Agriculture and food industry
- Exemption on the income for the employees involved in agriculture and food industry activities that
do not exceed a monthly gross income of 10,000 lei inclusive. The exemption applies where the basic
THE ROMANIAN AGENCY FOR INVESTMENT AND FOREIGN TRADE
* INS / NIS (Institutul Național de Statistică / The National Institute of Statistics)
** BNR / NBR (Banca Națională a României / The National Bank of Romania)
***ABSL - Asociația Business Service Leaders în Romania / Association of Business Service Leaders in Romania
function is located, based on an individual employment contract. The part of the monthly gross income
that exceeds 10,000 lei does not benefit from tax benefits.
- 10% health contribution (CASS).
- 20.25% social insurance contribution (individual pension contributions-CAS) - reduced by 4.75%
compared to the standard rate of 25%
The facilities specific to all these industries are valid until 31 December 2028, including those for employees
in the IT sector.
Human resource:
Skilled labour force at competitive prices:
Starting July 1st 2024, the gross national guaranteed minimum wage is 3.700 lei/month established as
income, without including allowances, increments and other additions. These provisions do not apply in
the construction sector, agriculture and the food industry.
The projects we are aiming at attracting are no longer labor intensive as we are shifting towards high
value-added investment projects.
In the construction field, the guaranteed minimum gross basic salary is 4,582 lei per month, without
including other bonuses, for a regular work schedule, amounting 27.714 lei/hour
In the agriculture sector and food industry, the guaranteed minimum gross basic salary is 3,436 lei
per month, without including other bonuses, for a regular work schedule, amounting 20.782 lei/hour.
In June 2024, the gross average income was 8,480 lei, with 125 lei higher against May 2024 (+1,5%)
(according to the *NIS/August 12, 2024).
The highest values of the average net earnings were recorded in publishing activities (11614 lei), while
the lowest in manufacture of wearing apparel (2798 lei) (according to the *NIS/August 12, 2024).
In Q1 2024 compared to Q4 2023, the adjusted hourly labour cost (working days adjusted) registered an
increase rate of 1.85%. In Q1 2024 compared to Q1 2023, the adjusted hourly labour cost (working days
adjusted) registered an increase rate of 16.45% (according to the *NIS/June 4, 2024).
The hourly labour cost in 2023 was 11 euros, the second lowest after Bulgaria (9.3 euro), and 2.9 times
lower than the EU27 average (EUR 31.8). The hourly labour costs by main activities: construction (8.9
euros), industry (10.2 euros), business economy (10.8 euros), services (11.6 euros), mainly non-business
(11.8 euros) (according to Eurostat - March 2024).
Introduction of the dual education at secondary school level - in this sense the Vocational Training
Authority in Dual System was established and partnerships were created with the major universities in
the country.
THE ROMANIAN AGENCY FOR INVESTMENT AND FOREIGN TRADE
* INS / NIS (Institutul Național de Statistică / The National Institute of Statistics)
** BNR / NBR (Banca Națională a României / The National Bank of Romania)
***ABSL - Asociația Business Service Leaders în Romania / Association of Business Service Leaders in Romania
Romania has a significant pool of educated talent, enjoying a great creative potential and a highly skilled
workforce; 97% of Romanian high school students learn at least two foreign languages, 90% of graduates
are English speakers. Many of them also speak German, French, Spanish or Italian - which indicates a
good ability to cross the cultural and linguistic barriers.
49.0% of persons aged 18-69 years know at least one foreign language (according to *NIS/December 8,
2023).
The number of IT engineers per capita is higher in Romania than in India, the United States, Russia or
China.
Sectors:
Automotive
Key sector, enjoying a long tradition in Romania
With a contribution of aprox. 12% to the GDP, the turnover registered by the automotive sector was EUR
31 billion in 2022
In 2021, the value of exports from the automotive sector was 21.8 billion Euros, representing 29.8% of
the national exports. In 2022, the automotive sector contributed to 29% of total national exports.
2022 came as a record year for car production in Romania, with 509,915 units (DACIA 314,678 units
and FORD 195,237 units). According to ACEA - State of the EU auto industry, full-year 2022, Romania's
car production increased by 20.6% in 2022, Romania ranking 6th of EU vehicle manufacturers top.
In 2023, 513,050 units were assembled (DACIA 322,086 units and FORD OTOSAN 190,964 units)
(ACAROM), a new record for the Romanian automotive industry: production in 2023 was 0.7% higher
against 2022, 22% higher against 2021 and 17% higher against 2020. Even compared to 2019 - an
unaffected by the pandemic and the semiconductor crisis year - an increase of 4.7% was registered.
It is expected that 2024 will be a new record year for Romania's car production, given the fact that new
products will enter the assembly lines at both plants, Dacia and Ford Otosan - the third generation of
Dacia Duster and the facelift version of Ford’s Puma SUV, in addition to the new Transit and Tourneo
Courier whose assembly began at the end of 2023.
More than 630 supplying companies, with more than 230.000 direct employees
The regions with significant supplier network: Argeș (Dacia), Oltenia (Ford), West, Center, North-West
(export Germany)
The R&D in the domestic automotive sector continues to grow by new investments and relocations of
high tech activities (Continental, Renault, Bosch, Porsche, Delphi, Siemens, Schaeffler)
Top 3 exporting companies: DACIA, FORD, DAIMLER (Star Assembly)
Two of the world's largest car manufacturers are present on the domestic market: Dacia Renault and Ford;
Romania is profiling itself as one of the regional hubs in automotive
The highest quality level in terms of auto parts manufacturing in Eastern Europe
The Romanian Automotive Industry - suppliers: Robert Bosch, Continental AG, Magna International,
Faurecia, Adient, Delphi, Valeo, TRW, Lear Co., Yazaki Corp, Sumitomo, Calsonic Kansei, Autoliv
THE ROMANIAN AGENCY FOR INVESTMENT AND FOREIGN TRADE
* INS / NIS (Institutul Național de Statistică / The National Institute of Statistics)
** BNR / NBR (Banca Națională a României / The National Bank of Romania)
***ABSL - Asociația Business Service Leaders în Romania / Association of Business Service Leaders in Romania
Source: ACAROM (Association of Automotive Manufacturers of Romania)
Services sector - SSC, BPO, ITO, R&D (Shared Services Center, Business Process Outsourcing,
Information Technology Outsourcing, Research and Development)
Growth driver and an important contributor to Romania's GDP (2-2.5% of GDP and 5.4% of GDP in
2021) (***ABSL)
Romania is one of the most appealing near-shore locations, capitalizing on a sound educational system,
with a strong focus on IT, finance and accounting, thus providing a steady and competitive flow of skilled
resources to meet the growing demand of SSC/BPO entities
Some of the most preeminent international companies in the field, including global players like IBM,
HP, Oracle, Microsoft, Adobe, Endava etc.
131,000 employees in BSS in 2020 (1.5% of the total employees in the Romanian economy), reaching
aprox.180,000 employees in 2021.
280 companies in BSS;
1st position in mature outsourcing markets
More than 64,000 university graduates form the talent pool of the sector (Source ***ABSL)
Cultural compatibility and wide range of foreign language skills, covering English, French, Spanish,
Italian, German, Portuguese, Hungarian, Czech, Slovak, Bulgarian and Russian, provide a competitive
edge to the Romanian work force (Source ***ABSL);
€4.5 Bn industry size in 2020 and €9 Bn in 2021 (***ABSL, June 2022);
Wages offered at the entry level in the business services industry are 30% higher compared to the
minimum wage, for employees with higher education. (Source ***ABSL)
About 45% of the companies in the industry are SSCs (Shared Service Centers – companies which
clusters certain activities, such as IT, accounting, purchasing, etc. in an entity specialized in shared
services). 44% are active companies in the BPO industry (Business Process Outsourcing – specializes in
providing services to external customers), the remaining 11% of companies are hybrid. Most companies
operating on the local market come from France, Germany, Romania and USA. (Source ***ABSL -
January 2020);
Estimated number of jobs in the next 5 years: 220,000.
IT&C
Significant contributor to Romania's GDP in 2022 (1.3% of GDP growth)
IT&C - 7.1% to the GDP formation in 2023 (estimated data, according to the *NIS, April 9, 2024)
IT&C - Q1 2023: 8.0% contribution to the GDP formation and 0.5% to the GDP growth (according to
the *NIS, July 7, 2023)
THE ROMANIAN AGENCY FOR INVESTMENT AND FOREIGN TRADE
* INS / NIS (Institutul Național de Statistică / The National Institute of Statistics)
** BNR / NBR (Banca Națională a României / The National Bank of Romania)
***ABSL - Asociația Business Service Leaders în Romania / Association of Business Service Leaders in Romania
IT&C - Q2 2023: 7.0% contribution to the GDP formation and 0.4% to the GDP growth (according to
the *NIS, October 12, 2023)
IT&C - S1 2023: 7.5% contribution to the GDP formation and 0.4% to the GDP growth (according to the
*NIS, September 7, 2023)
In recent years, software development outsourcing has been increasingly popular in Romania. Romania’s
IT market value reached EUR 6 billion in 2022 (Rinf.tech, ”A Complete Guide to IT Outsourcing in
2023”)
Technology is considered a primary growth driver for Romania, enjoying a EUR 20 million investment
yearly growth, according to ANIS (Employers’ Association of the Software and Services Industry)
The IT&C services sector fostered a 9% yearly growth rate of the large companies’ revenue, 73% of the
revenue being generated by companies with foreign capital, according to the ***ABSL
Romania has all the prerequisites to remain a center of excellence in IT. The largest national and foreign
IT&C companies have their headquarters in Bucharest
64% of Romania’s IT firms are financed by outside investors, demonstrating the country’s appeal to
overseas investors. (Rinf.tech, ”A Complete Guide to IT Outsourcing in 2023”)
Lots of innovation labs and tech hubs are in the main cities in Romania: Bucharest, Cluj-Napoca, Iasi,
Brasov, Timisoara and Sibiu
Romania has the sixth highest number of certified IT specialists per capita in the world, ahead of countries
like the USA, India or China (Source – microsoft.com, 2022)
The IT specialists represent a significant category in Romania's economic ecosystem, bringing their
value-added contribution to the development of other sectors as well through a horizontal implementation
of the concept of "Industry 4.0";
The development of the IT sector has made it a enabler for the automotive sector, the aerospace industry,
the chemical industry, agriculture and many others. By creating new partnerships or consolidating the
existing ones between universities and the business environment, we become part of the Industry 4.0
revolution. Thus, Romania is increasingly positioning itself as a regional hub in the IT field.
Romania ranks 3rd in the Digital Nomad Index by CircleLoop’s with one of the fastest-growing
information technology markets in Central and Eastern Europe, enjoying some of the cheapest average
monthly costs of fixed-line broadband packages ($8.15) and a cheap and reliable internet access.
University graduates are perfect candidates for IT outsourcing. Some of the most used technologies in
Romania: JavaScript, Java, Python, C#, .NET, C++, C, SQL, PHP and cybersecurity. (Rinf.tech, ”A
Complete Guide to IT Outsourcing in 2023”)
THE ROMANIAN AGENCY FOR INVESTMENT AND FOREIGN TRADE
* INS / NIS (Institutul Național de Statistică / The National Institute of Statistics)
** BNR / NBR (Banca Națională a României / The National Bank of Romania)
***ABSL - Asociația Business Service Leaders în Romania / Association of Business Service Leaders in Romania
R&D
Pillar of strength in putting Romania on the map of innovation
0% income tax for employees in R&D and innovation, in compliance with the Romanian current
legislation, for all persons included in a research-development and innovation project team
In the near future, Romania will turn into a regional R&D center, capitalizing on its enormous capacity
to innovate, the latest generation ELI laser being produced here.
Numerous international companies, including Google, Amazon, Samsung, Huawei and Accenture have
established R&D facilities in Romania.
Construction:
8.0% to the GDP formation in 2023 (estimated data, according to the *NIS, April 9, 2024)
Until December 31st, 2028 the tax regime for income in construction sector is:
o minimum gross wage for construction: lei 4,582/per month (without including additional
performance bonuses)
o the income from the salaries are exempted from the payment of the income tax, within the 10,000
lei from the gross salary. The exemption applies where the basic function is located, based on an
individual employment contract. The part of the monthly gross income that exceeds 10,000 lei
does not benefit from tax benefits.
o 10% health contribution (CASS)
o 2.25% work insurance contribution (CAM)
o 20.25% social insurance contribution (individual pension contributions-CAS) - reduced by 4.75%
compared to the standard rate of 25%
