Frequently Asked Questions
Why should a company choose Romania as a business location?
There are several reasons for which a company would chose to relocate or to start a business in Romania:
- Qualified Employees in several fields of activity
- Leading in IT sector – North East of Romania and Iasi city are well known for their quality of students in IT sector and for the opportunity of developing a business in IT
- Agricultural Opportunity for investment in production as well as in processing agricultural products, due to the cost of land and employees
- Low Business Operating Cost due to the cost of spaces (rented or purchased), employees payments
- Increased Return of Investment as a free trade in relation with Romania, as one of the European Union Member States
- The Bridge to Russia through Romania neighboring country – Republic of Moldova, with which Russia have several Free Trade Agreements
- Private Health Sector Development is a opportunity for investments since the state health system barely comply with the people requirements which are more interested in private clinics or praxis, from Romania as well as from Hungary, Austria and Germany
What are the living costs in Romania?
- Minimum wage compulsory by law: 160 Euro for employees plus taxes for company around 120 Euro = Total costs for company 280 Euro
- Estimated costs of land:
- within the city around 150-400 Euro/sqm,
- at the city limit in the rural area around 10-50 euro/sqm,
- in the agricultural area around 500 – 1500 Euro/10.000 sqm
- Renting offices in an A class business building: 20 euro/sqm/month
- Renting a flat for a private person: 2 rooms, around 50 sqm is around 200 Euro/month in the city center
- Renting a car – around 20 Euro/day
- Hotel costs – 3 stars hotels around 60 Euro/day
- Gas for cars – around 1,20 Euro/litter
- Road taxes for car (Rovigneta) – 4 Euro/months
- Public transport costs – all lines around 27 Euro/moth
- Direct flight Iasi – Vienna / daily basis – around 250 Euro
What are the employees wages in Romania?
- Wages for qualified workforce in several fields of activity (example: IT engineer salary (for a person with experience and very well qualified) in Romania is around 800 Euro/month for the person plus taxes for company around 500 Euro = Total costs for company 1.200 Euro)
- Wages for non qualified workforce (example: legal minimum salary in Romania is around 160 Euro/month for the person plus taxes for company around 120 Euro = Total costs for company 280 Euro)
What kind of connection in term of international transport are available?
- direct flight – Austrian Airlines – Iasi – Vienna
- good roads connecting Vienna – Iasi (Vienna – Budapest – Oradea – Cluj – Iasi) – around 1.100 Km
- railroad infrastructure
The country is well known for its bureaucratic public structure. How difficult is for a foreign company to succeed?
- To set up a company used to be an adventure since 4 years ago when, due to the requirements imposed by accession to the European Union simplified the things.
- Working with public administration might take some time form the company life.
- The legal system and the legal corporate regulations are difficult and could be interpreted.
- It is generally a good tendency at the local private administration to support and help the foreign investors.
- The auctions take the same time as in European Union since we apply basically the same regulations.
What are the concrete opportunities for a foreign investor?
- possibility of qualified workforce in several fields of activity (example: IT engineer salary (for a person with experience and very well qualified) in Romania is around 800 Euro/month for the person plus taxes for company around 500 Euro = Total costs for company 1.200 Euro)
- possibility non qualified workforce (example: legal minimum salary in Romania is around 160 Euro/month for the person plus taxes for company around 120 Euro = Total costs for company 280 Euro)
- possibility for buying land or construction in Romania (estimated costs of land: within the city around 150-400 Euro/sqm, at the city limit in the rural area around 10-50 euro/sqm, in the agricultural area around 500 – 1500 Euro/10.000 sqm)
- possibility of re-locate a company in Romania with low costs for construction, land and low operating costs (example: Nokia)
- possibility for a company registered under the Romanian law to access Structural Funds Instruments for developing the business (30% company contribution and 70% Non-refundable structural funds, for projects rang from 50.000 euro to 5.000.000 Euro)
- very good market for consumer goods (presented already: Carreffour, Billa, Kaufland, Practiker, Ikeea, Liddle)
- very good market for auto related industry being an market for new car with an average from car prices from 8.000 Euro – 18.000 Euro
- international companies already operating in Iasi: Continental, Delphy,
- Iasi city: 400.000 inhabitants (link Iasi and North East)
- Iasi is the oldest university city in Romania with very good engineering school and IT university, many companies from US have operating offices in Iasi for IT design
- Regional Entrepreneurs Association North East Romania have a One Stop Shop Office for Foreign Investors providing (through several specialized companies) service like: legal and fiscal counseling, tax counseling, engineering design, construction, notary, translation, office rental, land and construction purchasing or renting, market research, feasibility studies
- Very good connection with Republic of Moldova and possibility of connection with Russia through the Republic of Moldova (between which are sign a pact of free trade agreement)
- Free Trade Zone access and consultancy in the Republic of Moldova for business development
- Very poor quality of medical care in the state system and people are very oriented and looking for medical services in the private sector fro which are willing to pay
- Developing auto infrastructure: actual quality: good under the Austrian standard
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