Company formation Bucharest Romania

Romania at a glance

Here are my 5 biggest advantages that speak for a business operation in Romania or favor a local branch:

1. Liberal laws in economically important areas

Example: short-term rentals via AirBnB, Booking.com, etc. Is 100% legal

2. Lowest taxes in the EU up to 0.5 million turnover per year

There is only 1% tax on sales up to €500,000 per year - when hiring one
employee. Without permanent employees, 3% tax applies.

Which "offshore" destination in exotic countries can keep up? Dubai or Monaco maybe...

3. Very low personnel costs

The average net salary is around €600 per month. Romania has a disproportionately
well-trained workforce in the IT and engineering sector.

4. Cheap cost of living

If you have a little more than the average monthly wage, you get a very good quality of life. As an example, restaurant visits cost around 50% less than in
metropolises in Western Europe.

5. A Romanian company can be fully recognized by the local tax office

A company or a company branch in Romania can be recognized by the tax office in Germany, Austria or Switzerland and its taxation in Romania - and without double taxation.

The motto "build substance" applies. With the Hiring one or more permanent employees in Romania is like killing two birds with one stone. You show substance to the local tax office in Germany, Austria or Switzerland, because you not only own a mailbox company in Romania, but much more of a company with its own office and headquarters, as well as its own employees.

An employee with an employment contract reduces the tax burden on sales from 3% to 1% per year. The maximum turnover per year is 1 million euros to fall under this regulation. In addition, the profit is taxed at 16% or the variant can also be freely selected from the start.

This is by no means legal or tax advice - the information is provided without guarantee.

I hope you enjoyed this video - if you are interested in founding a company, the
topic of taxes or real estate in Romania, we look forward to hearing from you.