This article discusses the Romanian residence, its eligibility requirements, benefits, and how to acquire it in 2023.
Establishing residence in Romania gives you all the perks of an EU residence. Moreover, many Romanian residency options lead to citizenship, qualifying you for an excellent EU passport, business and investment opportunities, and exceptional travel freedom.
Ready to acquire residency in a tax-friendly EU jurisdiction? Get in touch with us, and we’ll help you go where you’re treated best.
Investors and entrepreneurs looking to obtain temporary residence in a European Union country will be drawn to Romania thanks to its attractive tax rates (1-3%) for micro-enterprises.
Moreover, Romania has one of the fastest Internet speeds in Europe, eclipsing the supposedly more developed Austria, Germany, and Switzerland.
A long-term residence permit in Romania appeals as it is acquirable without any investment or job creation. Moreover, Romanian residency may also lead to citizenship, offering tons of benefits of its own.
There are two main ways to secure a Romanian residence permit and ensure a legal stay in Romania beyond the 90 days offered by a short-stay visa.
Once you secure a temporary or permanent residence permit in Romania, you’ll need to carry it with you at all times on Romanian territory and show it when any competent authorities request.
All applicants must show proof of income and that it’s enough to sustain their stay in the country, evidence of national health insurance and a medical certificate from a public or private sanitary institution declaring that their state of health will not endanger others.
This is all the necessary paperwork to expect when applying for a long-stay visa.
You can apply for a temporary residence permit as a company director.
This Romanian residence permit is valid for one year and the initial investment is €50,000.
Temporary residence permits can be renewed, providing the initial investment remains within the company.
The General Inspectorate for Immigration manages the temporary residence permits in Romania, and looks favorably upon real estate and technological investment.
The specific terms and conditions laid out by Romania’s Immigration Office are:
- As a director, you should receive a minimum monthly income of €500.
- An investment of €50,000 must be made in the company’s initial assets as real estate or technologies.
You can also apply for a residence permit in Romania for business activities. This temporary residence permit is valid for one year. To acquire this residence permit, you need to invest €50,000 in a limited liability company or €70,000 in a joint stock company.
You can renew this temporary residence permit annually if the Romanian Agency for Foreign Investments is satisfied that you’re maintaining the investment in your Romanian company.
The following are the requirements to acquire a Romanian residence permit as a company shareholder:
- A capital or technology contribution amounting to €50,000 in the case of the shareholder in a limited liability company or €70,000 in the case of the shareholder in a joint-stock company. The proof of this investment has to be submitted for each renewal of the temporary residence permit so that the Romanian authorities can check that the investment remains within the company. No new investment is required each year.
- The creation of 10 full-time jobs in the case of the shareholder in a limited liability company or the creation of at least 15 full-time jobs in the case of the shareholder in a joint-stock company to obtain a residence permit.
- All the necessary paperwork showing you have means of subsistence for the duration of the residency permit, i.e., €500 per month if you are a shareholder in a limited liability company or at least €700 per month if you are a shareholder in a joint-stock company. This can be proven with any documentation that shows global income – foreign bank statements, proof of payment of dividends, pension certificates, etc.
If you are a US, Canadian, Japanese, or Switzerland citizen, the General Inspectorate for Immigration exempts you from the requirements for investment, job creation, and means of subsistence requirements.
As foreign citizens, however, you still need to become shareholders in a Romanian company, provide proof of accommodation, and pass medical checks to obtain a temporary residence permit.
Sizable investments in Romania offer the following benefits:
- For investments of at least €500,000 or creating more than 50 full-time jobs, the General Immigration Inspectorate extends the temporary residence permit from one year to three years. Once this long-stay visa expires, you can receive another three-year temporary residence permit.
- Investing €1,000,000 or creating a minimum of 100 full-time jobs will qualify you for a permanent residence permit.
When the permanent residence permit is issued, foreign citizens will be designated a CNP and personal identification number; that doesn’t change no matter how long they live on Romanian territory. It is updated after acquiring Romanian citizenship, however.
You will need to show sufficient knowledge of the Romanian language to secure a permanent residence permit.
Romanian authorities specify the following required documents if you want to acquire a Romania residence permit:
- Valid travel document (passport, etc.)
- Proof of legal ownership of the company or share
- Legal proof of accommodation demonstrated by evidence of ownership or proof of rental agreement
- Evidence of sufficient financial means of support
- Proof of social health insurance
- Medical certificate issued by any public or private sanitary institution declaring that you are not suffering from any disease that is a threat to public
- Evidence of paid residence permit fee.
There are many pros regarding Romanian residency.
Favorable Tax Rates: Microenterprises with up to €1,000,000 turnover annually pay a corporate tax of 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 four or eight years of holding a long-term residence permit. However, eight years is the standard period.
Possibility to Join the Schengen Area: At the time of writing Romania is currently not a part of Europe’s Schengen area, however we expect this situation to change soon enhancing your travel opportunities further.
No Need for Yearly Renewals: A permanent residence permit is issued for five years and can be extended.
Bring the Family: The family members of the principal applicant are also eligible for a long-term residence permit.
As an EU member state, with the possibility of joining the Schengen zone in the near future, Romania offers an excellent opportunity to establish residence in a business friendly EU jurisdiction with favorable tax rates.
Moreover, you can treat Romanian residence as a paper residence since it comes with almost non-existent physical presence requirements.
If you’re confused about how Romanian residence fits in with other aspects of your life, contact us. We specialize in providing holistic offshore strategies to seven and eight figure investors and entrepreneurs so that they can go where they’re treated best.