The foreign investment environment in Romania has been regulated since 1991, when the government of the time published Law no. 35 concerning the foreign investment regime. However, the way in which the state can stimulate these investments and the legal framework that make it able to do so was regulated only in 2008 through the Government Emergency Ordinance no. 85, with additional provisions being implemented since then.
Under the ordinance, the benefits offered by the Romanian state to foreign investors are dependent on several factors, including: the field in which the investment is made (for example an investor who puts money into a disadvantaged sector will receive superior state aid compared to that granted to investors that target other sectors), the number of jobs created through the investment, the attention awarded by investors to the research and development area, the extent to which it achieves the energy efficiency used by this activity and also the importance allocated to renewable resources; benefits are also awarded to those that contribute to Romania’s infrastructure or favor a certain touristic segment.
Finally, one of the most important criteria is actually that of the investor’s creditworthiness, as the Romanian government is not giving benefits to an investor whose financial situation is shaky or whose loans exceed a certain threshold (usually calculated as a percentage of the total value of the company or of the value of its assets).
If the last criterion was satisfied and investors also manage to meet another condition from the ones enumerated above then it is likely that investors enjoy some incentives that normally involve financial contributions from the government.
In more concrete terms, the state may grant different non-repayable amounts which are awarded on condition that the investor acquires certain tangible and/or intangible assets. Another series of benefits can take the form of interest bonifications when investors are contracting loans. Moreover, investing in sectors such agriculture, IT, communication and research enjoy a privileged status in terms of government funding, as do initiatives focused on sustainability and renewable resources.
Lastly, foreign investors enjoy the existence of a Department for Infrastructure Projects and Foreign Investment established by government decision No. 7 per 2013. This department facilitates foreign investment in Romania giving advice and assistance to foreign partners, and notifying them about the benefits they can enjoy by investing in the country.
Sources:
http://www.capital.ro/cele-mai-mari-investitii-straine-in-anul-2015.html
http://www.rolegal.com/articole/incurajarea-investitorilor-straini
http://www.contabilidinbucuresti.ro/legislatia-romana-pentru-investitii-straine
Claudiu Bolcu
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