What Is Romania’s Investment Visa Program Like?

In recent years, Romania has performed a modest economic miracle, sweeping away the remains of communist planning and converting itself into a model of free-market reform. It is a full member of the EU and will soon be a Schengen member, and its GDP is growing. It is now more economical to invest in Romania than elsewhere in the EU owing to the difference in cost of living. Still, with the potential of increased prosperity thanks to EU financing, there is a strong likelihood that the value of the investment will rise in the future.

Romania lies at the crossroads of Central, Eastern, and Southeast Europe. You can easily access the country from its neighbouring nations, Bulgaria, Ukraine, Hungary, Serbia, and Moldova. The country has a generally temperate-continental climate, with a population of roughly 19 million people.

Romania is known for its thriving middle-income economy, which is predominantly service-based. It is also a manufacturer and net exporter of machinery and electricity. Bucharest, the capital, is a central financial and industrial hub in Eastern Europe.

Suppose you desire to remain in Romania for an extended period and establish a business. In that case, you must first secure a Romania Investment Visa and then apply for a long-term resident permit.

Bucharest, Romania

GETTING A ROMANIAN INVESTMENT VISA

Romania now provides investment visas to international investors who commit to investing in Romanian firms and creating jobs in the country. This kind of visa is offered to applicants who are or will become shareholders or associates in management and administrative roles within businesses having legal personality in Romania, based on previous approval by the Romanian Center for the Promotion of Foreign Investments.

The Romanian Investment Visa allows any foreign nationals who invest the minimum needed amount in Romania in a firm that will generate at least 10-100 permanent employment over five years to get residence and fast-track citizenship.

You will need to secure a one-year residence permit to obtain this visa. The criteria for renewing your residence visa vary according to the amount of money you invest and the number of jobs you create. Your proof of means of subsistence is no longer necessary if you invest at least €100,000 ($106,505 USD) or create at least ten jobs. If you invest €1 million ($1,062,295 USD) or create 100 new jobs, the criterion of five years of continuous residence and financial resources comparable to the minimum salary for permanent residency may be waived.

There are no additional criteria for business experience or training. Still, you must submit a business plan outlining the overall investment amount, where you want to invest, and the number of jobs you intend to create. You will have 12 months to complete the acquisition and a five-year forecast of your company's development. You will also need adequate health insurance for your spouse and dependant children under 18.

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Timisoara, Romania

ROMANIA CITIZENSHIP

There are no unique requirements for conferring citizenship based on a residence permit obtained by an investor. You must go through the standard naturalization procedure to become a Romanian citizen. You may gain Romanian citizenship if you have lived in Romania for the last eight years or five years if you are married to a Romanian citizen.

If you utilize the investment visa and invest at least €1 million ($1,062,295 USD) in Romania for four years or two and a half years if you are married to a Romanian citizen, you may reduce the timeframe. Citizenship acceptance might take up to 24 months. However, the whole year is discarded when applying for citizenship if you spend more than six months overseas.

Aside from the state of residency, To apply for Romanian citizenship, you must also meet the following requirements:

• You must demonstrate devotion to the Romanian state via your acts, behaviour, and attitude.
• You must demonstrate that you did not engage in or support acts against the rule of law or national security and that you have never engaged in such behaviour in the past.
• You must be at least 18 years of age.
• You should have sufficient cash resources.
• You should have a good character and have not been convicted of crimes that render you unable to be a Romanian citizen, either in Romania or abroad.
• You should be able to communicate in Romanian and have a basic understanding of Romanian culture and civilization, enabling you to integrate into social life.
• You should also know the Romanian Constitution's laws and the national anthem.

Brasov, Romania

THE ADVANTAGES OF BEING A ROMANIAN CITIZEN

Strong passport

The Romanian passport is the world's 17th most powerful EU passport. As a Romanian citizen, you will have visa-free or visa-on-arrival access to 176 countries and territories.

No physical residency restrictions

Obtaining citizenship does not bind you to reside in Romania and allows you to choose any European nation for permanent residence.

Brasov, Romania

TAX ADVANTAGES FOR ROMANIAN INVESTMENT VISA

Romania's corporate income tax is relatively low compared to other EU nations such as Germany or Belgium. Moreover, the nation now provides tax breaks to all investors, foreign or domestic, including:

• Subject to EU state assistance rules, a tax credit of up to 80% of the company tax owed for up to ten years for investments exceeding EUR 330,000 ($350,557 USD).
• Investment incentives in certain areas (manufacturing, logistics, service centres, R&D, tourism, film production, sports, and so forth).
• 50% extra company tax deduction for qualifying research and development costs.
• Corporate tax exemption during the first ten years of operation for taxpayers engaged only in innovation, research, and development.

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Sinaia, Romania

CONCLUSION

Romania is an appealing location for international investors and one of the EU's most energy-independent nations. If you want to invest in Romania, you should know that the nation will provide you with an unrivalled chance for investment and a favourable business environment owing to its strategic position, tax structure, and educated workforce.