Foreign Direct Investment in Romania on the rise

Romania is one of the largest markets in Central and Eastern Europe with over 21 million people. Attractively located between the EU, Balkans and CIS (Commonwealth of Independent states), Romania also has a maritime door via the port of Constanta on the Black Sea, providing access to the Southeast European markets.

Romania’s resources are varied and plentiful; skilled labor force, natural resources such as oil and gas, fertile agricultural land, as well as surface water and ground water. The natural resources have made tourism investments particularly attractive due to the variety of the natural landscape.

A member of EU, NATO, UN, OSCE, the Council of Europe and the International Organization of Francophonie, Romania has additionally signed treaties of free trade with the EU, EFTA, and CEFTA countries and is a member of the World Trade Organization (WTO) since January 1995.

Foreign Direct Investment (FDI) in Romania has increased by 600% since 2000. In 2016, the inbound FDI amounted to 3.93 billion Euros, a 22% increase from 2015.

The increase is a direct result of the Romanian government’s attractive package for FDI which includes 0% tax on reinvested profit, easy access to European Funds, and a corporate tax rate of 16%.

The most important investments were done by companies from Turkey, China, Belgium and the United States. It is worth noting that, according to the National Bank of Romania, about 90% of the total stock of FDI in Romania comes from EU member states.

Adina Dumitrache
Corporate Administrator

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