Real Estate

Romanian Real Estate

Q: Where do I find a Romanian property or a Romanian real estate agent online?

A: A few examples: www.property-abroad.com, realestate.ro-imobile.ro, www.realtors.ro.

Q: Can I buy Romanian property as a foreigner?

A: Just read article at the link below:

http://www.romanianlawoffice.com/purchase-romanian-property.htm

Q: What taxes do I have to pay if I purchase property in Romania?

A: You would have to take into account the tax to the Romanian State, Public Notary Fee and eventually VAT depending on whether you are buying directly or through a Romanian company.

 

Taxation

Q: How much is VAT tax in Romania?

A: 19%.

Q: I want to start a business in Romania. How much is taxation?

A: Romania has a unique 16% tax of the reported profit.

Q: Is hiring an accountant necessary if starting a Romanian business?

A: Yes. Even if opening a Romanian company for limited purposes (such as buying real estate) you will have to consider hiring an accountant at least for semmestrial reports to the Tax Authority.

 

Legislation

Q: Can I contact Romanian lawyers online?

A: www.RomanianLawOffice.com

Q: Where can I find official information about Romanian lawyers?

A: Each major city has its own Bar with its own website which contains a database of registered attorneys. E.g. for Bucharest: www.baroul-bucuresti.ro.

Q: I already have a company outside Romania and I want to expand to Romania? What choices do I have?

A: What you first have to figure out is whether you just need a representative office (a branch without legal personality) or an independent company (with shares owned by your existing company).

 

Investments

Q: I am looking to purchase Romanian land for future development. Where do I start?

A: First you need to know that foreigners (even E.U. citizens) cannot yet own land in the country so you will have to incorporate a Romanian company. Then you will either have to contact a Romanian agent or search for the property yourself on the Internet. After initial contact with the seller you will have to search for a Romanian lawyer for a Due Diligence procedure (find out if you can build on the land, details on current legal status etc.) and assistance during the sell/purchase process.

Q: Why should I invest in Romania?

A: Top reasons would be: 1. new member of the European Union; 2. One of the largest markets in the area; 3. skilled labor force; 4. developing infrastructure; 5. construction and real estate boom.

Q: Where should I invest in Romania?

A: Although the NE region (Moldavia) has a slightly better infrastructure the N - NW region (Transylvania) is richer and with more future business potential.  E.g. Timisoara has a high number of foreign investors (mostly Italian), real estate prices have boomed in Cluj-Napoca, Sibiu has been selected European Capital of Culture in 2007 and benefits from a large number of German investors. With these being said, Bucharest is probably still the place to invest in most areas.

 

Recruiting

Q: What is the net average salary in Romania?

A: Around 200 Euros/month. Source: INSSE – National Institute of Statistics - May 2005.

Q: Where can I start hiring Romanian personnel?

A: The best places online are www.ejobs.ro and www.bestjobs.ro. Of course for extra-qualified personnel you will probably have to contact a Recruiting Company.

Q: What are the types of problems am I likely to encounter when hiring Romanian personnel?

A: 1. Migration of personnel; 2. Expectations of raising salaries on a short-term basis; 3. Lack of specialists in certain areas like management, IT specialists, bankers, lawyers.

 

Trading

Q: Why is Romania a good idea if establishing a presence in EU market?

A: Romania is perhaps one of the best places for this purpose because of the following reasons: 1. competitive 16% flat tax; 2. low salaries; 3. low costs for on-going business; 4. quick development in most markets

Q: Where can I find information on Romanian import-export legislation, payment of VAT, double-taxation avoidance etc.?

A: Unfortunately legislative resources on the Internet are scattered not up-to-date. To get some relevant information on these matters you will have to contact a Romanian law firm.

Q: Can I import/export pharmaceuticals in Romania?

A: There is a permit required for this activity. There are quite a few conditions for obtaining this permit and it would probably be best to contact a Romanian lawyer for a detailed legal report for this purpose.