Romania on its way to become Europe´s favourite tax haven

    Romania is a sovereign state located at the crossroads of Central, Eastern, and Southeastern Europe. It borders the Black Sea, Bulgaria, Ukraine, Hungary, Serbia, and Moldova. It has an area of 238,397 square kilometres and a temperate continental climate. With almost 20 million inhabitants, the country is the seventh most populous member state of the European Union. Its capital and largest city,

    Bucharest, is the sixth-largest city in the EU, with 2,106,144 inhabitants as of 2016. Romania has been a member of NATO since 2004, and part of the European Union since 2007. An overwhelming majority of the population identify themselves as Eastern Orthodox Christians and are native speakers of Romanian, a Romance language 1 . Since Romania was conquered once by the Turks, some turkish words have found their way into the Romanian language, like for instance „Bakshish“, the turkish word for „tip“. The cultural history of Romania includes influential artists, musicians, inventors, and sportspeople 2 . People are friendly and still sharing their old traditions. Food is nice, the Romanian cuisine is a heavy one with main courses served with delishious white bread and of course with mamaliga, a maize dish.
    Romania´s development over the last years Despite being one of the poorest states in the European Union, Romania ranks now 50th in the Human Development Index and is a developing country, with an annual economic growth rate of 7% (as of 2017), the highest in the EU at the time. Following rapid economic growth in the early 2000s, Romania has an economy predominantly based on services, and is a producer and net exporter of machines and electric energy, featuring companies like Automobile Dacia and OMV Petrom.
    Romania’s economy will grow by an average annual rate of 5% in the 2019-2021 period, according to the Convergence Program the Government adopted last week. For 2018, the Government estimates a 6.1% economic growth. The forecasted economic growth dynamic is higher than in the previous Convergence Program adopted last year 3 .
Romania, new tax haven for individuals and companies?
    In addition to the above mentioned good news, Romania lowered its taxes starting 1.1.2018. Having already before a relatively low income tax of 16%, the taxes on personal income went down to 10%.
    This is in comparison to other European countries the lowest tax rate besides Hungary and Montenegro with 9% 4 .
    But Romania lowered also the company tax, which is now only 1% of the yearly revenue for microcompanies with one or more employees or 3% for microcompanies with no employees. 5
    This gives foreign companies a chance to move to Romania to do business in a company-friendly environment, which is the reason why foreign entrepreneurs from different countries move to Romania to start their companies.
    One example is Robert Knapp, a German that started his IT-company „CyberGhost“ in Bucharest and made millions out of it 6 . This is no big surprise, as Romania is in general a good place for internet technology.
1 https://en.wikipedia.org/wiki/Romania 
2 Simona Halep, tennisplayer; Gheorghe Hagi, football player 
3 https://www.romania-insider.com/govt-romania-economy-2019-2021/
4 https://en.wikipedia.org/wiki/Tax_rates_in_Europe 
5 micro-companies are companies with a maximum revenue of EUR 1 Mio at the end of last year, see http://taxsummaries.pwc.com/ID/Romania-Corporate-Taxes-on-corporate-income 
6 https://www.zdnet.com/article/forget-silicon-valley-building-a-startup-in-romania-may-make-more- sense/. The political situation is stable, and people are eager to work and develop their country, so here you have all the reasons to start business in this beautiful country