Imagine a life nestled in a beautiful European country, surrounded by the picturesque Carpathian Mountains, medieval castles, and a vibrant, culturally rich atmosphere. Romania offers this and more, with a moderate cost of living and a business-friendly environment.
Here’s why Romania might be your perfect fit:
⇒ Affordable Lifestyle: Enjoy a high quality of life at a reasonable cost. Romania boasts some of the most competitive living costs in Eastern Europe.
⇒Tax Advantages: A haven for entrepreneurs, Romania offers attractive tax incentives like a flat income tax rate and reduced rates for IT professionals.
⇒Efficient Business Setup: Forget complex procedures. Establishing a business in Romania is straightforward, facilitated by government reforms and EU membership.
⇒High-Quality Services: Romania is committed to enhancing its services, from healthcare to education, ensuring a comfortable living environment.
⇒Cultural Richness: Immerse yourself in a diverse cultural heritage, from ancient traditions to modern arts, and a wide variety of food and wine celebrated globally.
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A tax resident in Romania is typically defined as an individual or a legal entity that is subject to tax in Romania on their worldwide income, encompassing all sources of income, regardless of where the income is earned.
For individuals, tax residency in Romania is primarily determined by physical presence and a residency permit. If someone spends more than 183 days within a calendar year in Romania and holds a valid Romanian residency permit, they are generally considered a Romanian tax resident. Additionally, individuals who establish a domicile (the place where they live with the intent to remain) in Romania are also regarded as tax residents.
This status is crucial for understanding one’s tax liabilities, as Romanian tax residents are obligated to report and pay taxes on global income to the Romanian tax authorities.
One might consider moving their tax residence to Romania if they are seeking a jurisdiction with competitive personal income tax rates compared to their current country. While the average income tax rate in Europe hovers around 30%, Romania offers more favorable conditions with a flat tax rate of 10% for all professions. Additionally, for IT Professionals, researchers, and seasonal workers, the unique personal income tax is exempted under certain conditions.
Here’s when shifting one’s tax residence to Romania could be a good idea:
— High Taxes at Home: If one’s country has high income taxes, moving your tax residence to Romania could save you significantly on your tax bill.
— No Need to Move Permanently: One doesn’t necessarily have to live in Romania full-time to benefit from its tax system, thanks to the non-domiciled resident status.
— Access to European Markets: Romania’s impending inclusion in the Schengen Zone enhances its appeal, offering ease of travel throughout the European Union.
— Vibrant Expat Community: Romania hosts a growing community of expats, providing a network of support and ample opportunities for like-minded individuals.
— Expanding Business Opportunities: With its growing economy, Romania presents numerous business and investment opportunities, especially in technology and real estate sectors.
Remember, changing one’s tax residence can be complex, and each situation is unique. It’s important to contact us to understand all the implications and ensure compliance with the necessary legal requirements before taking any action.
Romania’s tax system is highly attractive for expats and foreign entrepreneurs with 10% income and corporate tax rates, and a special exemption for IT professionals, researchers, and seasonal workers. In Romania, you keep approximately 80-82 cents of every euro earned. Romania is not just tax-friendly; it’s welcoming for new businesses. Streamlined company registration, a workforce proficient in English, and a pro-business government make establishing your venture here straightforward.
Additionally, in Bucharest, enjoy urban life without the high costs, or discover tranquility and breathtaking scenery at reasonable prices in regions like Transylvania. Romania offers the ideal combination for fostering businesses: competitive tax incentives, a welcoming business environment, and living costs that empower you to scale your aspirations. Ready to relocate, open a bank account, or expand your business? Romania is prepared to welcome you. Contact us today.
Romania offers various pathways to obtain residency, catering to diverse professional needs, enhancing its appeal as a strategic location for expatriates and entrepreneurs:
— IT Residency Program: Specifically designed for tech professionals, this program is available for entrepreneurs who establish a tech company in Romania, IT specialists, managers, or freelancers engaged in the IT sector. Applicants need to demonstrate their involvement in IT-related activities, which may include software development, system analysis, and more.
— Investment Visa: This visa requires a significant investment in Romania, such as starting a business or purchasing property. It offers the added benefit of allowing your family to obtain residency permits through the same application, facilitating family relocation to this dynamic European country.
— Employment Visa: For those with a job offer in Romania, the employment visa is typically arranged by the employer. This process often involves collaboration with specialized law firms like ours to ensure all immigration paperwork is prepared correctly before your arrival.
Our firm provides comprehensive support for these residency pathways, from drafting your application to facilitating your relocation. We work closely with real estate partners to help you find the ideal living space and connect with concierge services to ensure a seamless transition to life in Romania. Contact us for expert guidance on these options and how they can suit your professional and personal aspirations.
Steps to Acquire Tax Residency in Romania:
1. We’ll provide a checklist of documents you’ll need for identity verification as part of our due diligence process.
2. Whether you’re targeting the IT Residency Program or Investment Visa, we’ll draft a power of attorney to facilitate setting up your business in Romania, from company formation to solo entrepreneurship, as well as for opening a local bank account. For real estate investments or startup investments (minimum of 25,000 EUR to meet Investment Visa requirements), we’ll coordinate with our network of local partners.
3. We prepare a specific power of attorney to represent you with Romania’s tax and immigration authorities.
4. You’ll send the required documents to us internationally. Upon receipt, we’ll manage the translation into Romanian.
5. With our assistance, you’ll register your business and open a bank account.
6. We guide you through the residence permit application and apply for your residence permit. You’ll need to visit Romania for this step to complete the required formalities.
7. Lastly, we’ll finalize your application for tax residency.
Our approach ensures compliance with Romanian regulations and a streamlined process for obtaining your tax residency. For personalized guidance, reach out to us.
