Establishing residence in Romania gives you all the benefits of EU residency. Additionally, Romania's many residence options lead to citizenship, an excellent EU passport, business and investment opportunities, and exceptional travel freedom.
Are you ready to obtain residency in a tax-friendly EU jurisdiction? Contact us. We will help you get to the place where you can receive the best treatment.
Why Romania?
Investors and entrepreneurs seeking temporary residence in European Union member states will be attracted to Romania thanks to attractive tax rates for small businesses (1-3%).
Additionally, Romania's internet speeds are among the fastest in Europe, surpassing Austria, Germany, and Switzerland, which are considered more developed.
Long-term residence permits in Romania are attractive because they can be obtained without investment or job creation. Furthermore, residing in Romania may also lead to citizenship, which in itself brings many benefits.
Romania residency program
There are two main ways to secure a Romanian residence permit and be able to stay legally in Romania beyond the 90 days provided by a short-term visitor visa.
Once you have obtained a temporary residence permit or permanent residence permit in Romania, you must carry it with you at all times within Romanian territory and present it if requested by the competent authorities.
All applicants must provide proof of income, proof that it is sufficient to maintain their stay in the country, proof of national health insurance, and that their health condition does not pose a risk to others. You must present a medical certificate from a public or private health agency declaring:
This is all the documents you need to apply for a long-term stay visa.
Permit to stay in Romania for business purposes as a director of a company
You can apply for a temporary residence permit as a company officer.
This Romanian residence permit is valid for one year and has an initial investment of 50,000 euros.
Temporary residence permits can be renewed as long as the initial investment remains in-house.
The General Inspectorate of Immigration administers temporary residence permits in Romania and looks favorably on real estate and technology investments.
Notable requirements for residence permit for company directors
The specific terms and conditions set by the Romanian Immigration Department are as follows:
- As a director, you must receive a minimum monthly salary of 500 euros.
- You must invest €50,000 in real estate or technology as the company's initial assets.
Permit to stay in Romania for business purposes as a shareholder in a company
You can also apply for a residence permit in Romania for your business activities. This temporary residence permit is valid for one year. To obtain this residence permit, you need to invest 50,000 euros in a limited company and 70,000 euros in a joint stock company.
This temporary residence permit can be renewed annually if the Romanian Foreign Investment Agency is satisfied that you maintain your investment in a Romanian company.
Notable requirements for company shareholder residence permit
The requirements for obtaining a Romanian residence permit as a shareholder of a company are:
- Capital or technical contributions amounting to EUR 50,000 for shareholders of a limited liability company and EUR 70,000 for shareholders of a joint stock company. You must provide evidence of this investment each time you renew your temporary residence permit so that the Romanian authorities can check whether the investment remains in-house. There is no need to make new investments every year.
- To obtain a residence permit, you must create 10 full-time jobs if you are a shareholder in a limited company or at least 15 full-time jobs if you are a shareholder in a joint stock company.
- All necessary documents proving that you have the means to support yourself during the period of your residence permit. That means more than 500 euros per month for shareholders in a limited liability company and 700 euros per month for shareholders in a joint venture. Co., Ltd. This can be proven with any document showing worldwide income, such as foreign bank statements, dividend payment certificates, pension certificates, etc.
If you are a citizen of the United States, Canada, Japan, or Switzerland, the Office of the Inspector General of Immigration waives investment, job creation, and means of subsistence requirements.
However, even if you are a foreigner, in order to obtain a temporary residence permit you will need to become a shareholder in a Romanian company, provide proof of accommodation and pass a medical examination.
A major investment in Romania has the following benefits:
- For investments of at least 500,000 euros or the creation of more than 50 full-time jobs, the General Immigration Supervision Office will extend the temporary residence permit from one to three years. Once this long-term visa expires, you can receive another three-year temporary residence permit.
- If you invest €1,000,000 or create at least 100 full-time jobs, you will be eligible for a permanent residence permit.
When a permanent residence permit is issued, foreigners are assigned a CNP and a personal identification number. That doesn't change no matter how long they live on Romanian territory. However, it will be renewed after obtaining Romanian citizenship.
To obtain a permanent residence permit, you must demonstrate sufficient knowledge of the Romanian language.
Documents required for Romania residence permit
Romanian authorities specify the following documents required when obtaining a Romanian residence permit:
- Valid travel document (e.g. passport)
- Proof of legal ownership of a company or shares
- Legal proof of accommodation evidenced by proof of ownership or rental agreement
- Evidence of sufficient financial support
- social insurance certificate
- A medical certificate issued by a public or private health authority declaring that there is no disease that poses a threat to the public.
- Proof that you paid the residence permit fee.
Benefits of establishing residence in Romania
There are many advantages when it comes to residence in Romania.
Favorable tax rate: Micro-enterprises with an annual turnover of less than €1 million pay corporate tax at 3% if they have no employees and 1% if they have one full-time employee.
Route to Romanian citizenship: You can become a Romanian citizen within 4 or 8 years of obtaining your long-term residence permit. However, 8 years is the standard period.
Possibility of joining the Schengen Area: At the time of writing, Romania is not currently part of Europe's Schengen Area, but this situation is expected to change soon, opening up further travel opportunities.
No annual updates required: Permanent residence permits are issued for 5 years and can be extended.
Bring your family: The applicant's family members are also eligible for a long-term residence permit.
Do I need to establish a residence in Romania?
As an EU member state and with the possibility of joining the Schengen Area in the near future, Romania offers an excellent opportunity to establish residence in a business-friendly EU jurisdiction with favorable tax rates.
Furthermore, Romanian residences have almost no physical residence requirements and can therefore be treated as documentary residences.
If you have any confusion about how Romanian housing fits in with other aspects of your life, please contact us. We specialize in providing comprehensive offshore strategies to help seven- and eight-figure investors and entrepreneurs get to where they are most favored.
