How to Invest in Romania: A 2025 Guide for Foreign Investors

Romania, strategically positioned in Southeast Europe, offers a compelling mix of investment opportunities for foreign investors. With its robust economic growth, skilled workforce, and investor-friendly policies, the country has become an attractive destination for capital inflows.

This guide provides an overview of the key sectors, legal frameworks, and considerations for investing in Romania in 2025.

Economic Landscape

Romania’s economy has demonstrated resilience and dynamism, with a GDP per capita (in purchasing power parity, or PPP) of approximately $47,203 in 2024. The country benefits from a diverse economic structure, encompassing industries such as manufacturing, agriculture, information technology, and services. Its membership in the European Union further enhances its appeal by providing access to a vast single market.

Key Investment Sectors

Information Technology (IT) and Software Development

Romania has emerged as a regional hub for IT and software development, boasting a highly skilled workforce and competitive labour costs. The government’s support for digitalisation and innovation has fostered a conducive environment for tech startups and established firms alike.

Renewable Energy

The country’s commitment to sustainable development has opened avenues in renewable energy, particularly wind and solar power. Romania’s geographical features and favourable climate conditions make it suitable for renewable energy projects and renewable energy storage, aligning with the EU’s green energy targets.

Agriculture and Agribusiness

With vast arable land and a tradition in agriculture, Romania presents opportunities in agribusiness, including organic farming, food processing, and export-oriented agricultural production. Investments in modernising agricultural practices can yield significant returns.

Infrastructure and Construction

The government’s focus on improving infrastructure, supported by EU funds, has led to increased investments in transportation, logistics, and construction sectors. Projects such as highway expansions and the modernisation of ports are underway, offering investment prospects.

Legal and Regulatory Framework

Company Formation

Foreign investors can establish various types of business entities in Romania, with the most common being the Limited Liability Company (SRL). The process involves registering with the National Trade Register Office and complying with relevant legal requirements.

Taxation

Corporate Income Tax: Standard rate of 16%.
Dividend Tax: Increased from 8% to 10% starting January 2025.
Value Added Tax (VAT): Standard rate of 19%, with reduced rates for specific goods and services.

Romania has an extensive network of double taxation treaties, providing relief to foreign investors from being taxed twice on the same income.

Foreign Direct Investment (FDI) Regulations

The Romanian government maintains an open stance towards Foreign Direct Investment (FDI), and strategic sectors are subject to screening procedures to safeguard national interests. Investments exceeding specific thresholds or in sensitive areas may require prior approval from relevant authorities.

Incentives for Investors

To attract foreign capital, Romania offers various incentives, including:

State Aid Schemes: Financial support for projects that contribute to regional development, job creation, and innovation.
Tax Incentives: Deductions and exemptions for investments in research and development, as well as reinvested profits in specific sectors.
Access to EU Funds: Grants and financing opportunities for projects aligned with EU objectives, such as sustainability and digital transformation.

Practical Considerations

Labour Market: Romania offers a skilled and multilingual workforce, particularly in technical and engineering fields.
Banking and Finance: A well-developed banking sector facilitates financial transactions and provides businesses with access to credit.
Legal Assistance: Engaging local legal counsel is advisable to navigate regulatory requirements and ensure compliance with relevant laws.

Investing in Romania in 2025 presents a strategic opportunity to tap into a growing economy within the European Union. By understanding the local market dynamics, regulatory environment, and available incentives, foreign investors can make informed decisions and capitalise on the country’s potential.