Romania has recently become one attractive destination for foreign investors, including both EU and non-EU citizens.
European Union citizens are entitled to free movement across EU member states, which enables them to travel, reside, work, and study without the need for visas or additional permits. This fundamental right facilitates mobility and fosters cooperation among member states, thereby contributing to the economic and social advancement of the European Union.
For non-EU citizens, the procedures for traveling, residing, or working in an EU member state are significantly more complex compared to those for EU citizens. Non-EU nationals are required to obtain a long-stay visa or a specific permit, such as a work, investor, or student permit, depending on the purpose of their stay in the host country. The process for obtaining these documents generally involves submitting a formal application accompanied by various supporting documents.
Continuing our series of articles on obtaining a Romanian long-stay visa, we will now focus on the process of acquiring a long-stay visa for investors. Investing in Romania and securing such a visa offers numerous advantages, including freedom of movement within the Schengen area, a favorable tax regime, and access to a dynamic and expanding market.
We will begin by outlining the criteria that must be met to qualify as an investor, and conclude with the specific conditions required to obtain the visa from the Romanian Center for the Promotion of Trade and Foreign Investment.
1. The investor.
2. Documents required to obtain a long-stay visa as an investor.
3. The notice of the Romanian Centre for Trade and Foreign Investment Promotion. The business plan.
4. Brief conclusions
I. The investor.
In order to be considered a foreign investor, within the meaning of Article 43 of Government Emergency Ordinance no. 194/2002 on the Regime of Foreigners (hereinafter referred to as “GEO No. 194/2002”), you must fulfil the following conditions:
a) be a foreign citizen;
b) be either:
– a shareholder; or
– an associate in a Romanian legal entity.
c) as a shareholder or an associate you must have managerial or management responsibilities.
These conditions are alternative, not cumulative, with the result that you must have either management or managerial powers. It is important to note that only foreign nationals who are partners or shareholders with managerial or management attributions are eligible to apply for an investor visa.
d) the company in which you are an associate or shareholder must be a Romanian legal entity.
Therefore, another requirement is the creation of a legal entity in Romania through which the investor’s activity is carried out. Currently, a legal entity can be legally established in just a few business days, depending on the complexity of its structure.
e) this Romanian legal entity has to make an investment.
II. Documents required to obtain a long-stay visa as an investor.
In order to obtain a long-stay visa as an investor you will have to submit a standard application at the diplomatic missions or consular offices of Romania, requesting the granting of the visa, together with the following documents:
1) the notice of investment issued by the Romanian Centre for the Promotion of Foreign Trade and Investments (point III details the procedure you need to follow in order to receive the notice of investment);
2) criminal record or other document with the same legal value;
3) medical insurance during the validity of the visa;
4) proof of guaranteed accommodation.
We mention that you also need to pay a visa fee.
III. The notice of the Romanian Centre for Trade and Foreign Investment Promotion.
1) Submission of a business plan
Since you are applying for an investor long-stay visa, you will have to submit to the Romanian Centre for Trade Promotion and Foreign Investments a business (investment) plan that will be implemented in Romania.
The business plan must include the following information, according to Article 43 Paragraph 2 letter a from GEO No. 194/2002:
– identification of the company (the Romanian legal entity). This includes: the name of the company, the headquarters, registered office, registration number in the Trade Register, Tax Identification Code, Unique Identification Code, the founders etc;
– its object of activity. This is simple to mention, because at the time of setting up the company you will have to mention the object of activity, according to the classification of activities in the national economy.
– the object and value of the investment;
– the estimated number of new jobs and the stages of their creation;
– the stages of the investment process and the amounts involved;
– location of the investment;
– duration of the investment and its depreciation;
– projection of financial activity over a minimum period of 3 years.
2) Funds
You must prove with a single bank statement, issued by a Romanian bank on your name, that you have the necessary funds to carry out the activity as follows:
– at least EUR 100.000 for foreigners as associates in a limited liability company;
– at least EUR 150,000 for foreigners as shareholders in a joint-stock company.
3) The investment
Furthermore, you must prove that you will make, within a maximum of 12 months from the date of obtaining the residence permit, an investment according to the business plan, bringing a capital or technology contribution of:
– minimum EUR 100,000 for a limited liability company;
– at least EUR 150,000 for a joint-stock company.
4) Other requirements
In addition, you must prove that the proposed investment plan will create, within 12 months from the date of obtaining the residence permit:
– at least 10 new jobs for a limited liability company;
– at least 15 new jobs for a joint stock company.
The purpose of this opinion is to assess whether the investment you plan to implement meets the technical, utility, and economic feasibility requirements. Please note that the Opinion of the Romanian Centre for the Promotion of Foreign Trade and Investment is valid only for a 6 months period from the date of issue.
One important mention is that in the case of companies with two or more associates or shareholders applying for notice, the conditions laid down in paragraph. (2) shall be considered separately for each applicant. This implies that requirements for the amount of the investment to be made and the number of jobs to be created will increase accordingly according to the number of applicants for approval.
As an example, if a foreign citizen applies for the notice of the Romanian Centre for Trade and Foreign Investment Promotion, he or she will have to make an investment of EUR 100.000 for a limited liability company and create 10 new jobs.
In the case of two foreign associates in a Romanian limited liability company requesting the notice of the Romanian Centre for Trade and Foreign Investment Promotion for both of them, the investment made by each of them must be of EUR 100.000, this means a total investment of EUR 200.000 and the creation of 20 new jobs.
Additionally, we mention that foreigners who have previously obtained a notice from the Romanian Agency for Foreign Investments or the Romanian Centre for Trade and Foreign Investment Promotion may apply for another notice, under the conditions set forth by Article 43 paragraph. (4) of GEO No. 194/2002.
IV. Brief conclusions
A foreign investor can obtain a Romanian long-stay visa by establishing a Romanian legal entity and making an investment of at least EUR 100,000 in a limited liability company or EUR 150,000 in a joint-stock company, conditions laid down in GEO No. 194/2002.
Romania is increasingly attractive to investors due to its favorable tax regime, which includes competitive taxes and incentives for key sectors. The country’s access to the broader European market facilitates trade and economic integration. Additionally, Romania’s growing economy, supported by a skilled workforce and opportunities in emerging sectors, provides a conducive environment for business development. These combined advantages make Romania an increasingly sought-after destination for international investments.
Gabriela Cioban, Associate Dutescu & Partners
