TL: As a foreign investor, what are the main considerations and advantages of doing business in Romania?
VG: As a foreign investor, the main considerations that should be taken into account prior to doing business in Romania are the legal framework and the active political movements that occur very often these days. These two considerations are very strong linked due to the fact that, right now in Romania, the new Fiscal Code and the new Fiscal Procedural Code are being published. If the President votes for them, they will come into force starting on the 1st of January of 2016. So, foreign investors should study the new fiscal terms and then look at the other benefits of investing in Romania (i.e., cheap workforce, good supply and demand ratio, etc.)
TL: What are the benefits of applying for residency in Romania and what does the process entail?
VG: From a fiscal point of view, the main benefit of applying for residency in Romania is the fixed rate for income tax (i.e., 16%). Also, Romania has in force a significant number of Double Taxation Treaties, so fair tax treatment is applied with regards to a large number of nations. In terms of the process, I cannot give you specific details due to the fact that conditions vary from one Double Taxation Treaty to another. In general terms, you can have conditions such as a requirement to spend more than 183 continuous days in Romania for a period of 12 months or have the centre of your vital interest based in Romania.
TL: In your opinion, what does the Romanian government need to do in order to promote more international investment and start-up activity in the country?
VG: I believe that the Romanian Government should promote the new Fiscal Code and the new Fiscal Procedural Code and to ensure a smooth transition from the one that is in force right now. Also, further amendments should be performed in order to facilitate foreign investments, and special working groups should be created to better understand the changes that should be performed to the actual legislation.
TL: Where are the majority of international investors coming into Romania arriving from and why do you believe this to be the case?
VG: The majority of international investors are coming from Asia (i.e., China, Japan, etc.) due to our fiscal conditions, which are considered to be mild, and for access to the European Union infrastructure.
TL: In terms of foreign investment and economic performance, where do you think Romania will be in 5 years time?
VG:Romania will develop at an accelerated pace because our target is to reduce the gap between us and the developed countries in the European Union.