In this article, we’ll explore Romania’s support scheme for renewable energy and how it can benefit companies operating in this growing sector.

Understanding Romania’s Support Scheme for Renewable Energy

Romania’s support scheme for renewable energy is designed to encourage the development of renewable energy projects in the country. The scheme provides financial and other types of support to companies that invest in renewable energy projects. The main objective of the scheme is to increase the share of renewable energy in Romania’s energy mix and reduce the country’s greenhouse gas emissions.

Eligibility Criteria for the Renewable Energy Support Scheme in Romania

To benefit from Romania’s support scheme for renewable energy, companies must meet certain eligibility criteria.

These criteria include:

• The renewable energy project must be located in Romania
• The renewable energy project must have a capacity of at least 1 MW
• The company must have a valid license to produce and sell electricity
• The company must comply with all environmental and health and safety regulations

Types of Support Available for Renewable Energy Projects in Romania

Companies that meet the eligibility criteria can benefit from various types of support under the scheme. These include:

• Green certificates: Companies that produce renewable energy receive green certificates for each MWh of electricity they generate. These certificates can be sold on the open market to other companies that need to meet renewable energy quotas.
• Feed-in tariffs: Companies that produce renewable energy can also benefit from feed-in tariffs. These tariffs guarantee a fixed price for the electricity generated by the project for a set period of time.
• Tax exemptions: Companies that invest in renewable energy projects can benefit from various tax exemptions, including exemptions from VAT and income tax.

Challenges and Opportunities of Romania’s Renewable Energy Support Scheme

While Romania’s support scheme for renewable energy presents many opportunities for companies, there are also some challenges to consider. One of the main challenges is the complex application process, which can be time-consuming and require significant resources.

However, for companies that are able to navigate the application process, the support scheme presents many opportunities. These include:

• Access to financing: Companies that receive support under the scheme can benefit from access to financing from banks and other financial institutions.
• Increased profitability: Companies that invest in renewable energy projects can benefit from increased profitability, as renewable energy projects are often more profitable than traditional energy projects.
• Environmental benefits: By investing in renewable energy, companies can help reduce Romania’s greenhouse gas emissions and contribute to a cleaner and more sustainable future.

Implementation of Romania’s Renewable Energy Support Scheme

The implementation of the support scheme is overseen by the Romanian Energy Regulatory Authority (ANRE).

ANRE is responsible for ensuring that companies comply with the eligibility criteria and that the support is distributed fairly and transparently.

The Romanian government is also playing a key role in implementing the support scheme. The government has set targets for the share of renewable energy in Romania’s energy mix, and is implementing policies and regulations to encourage the development of renewable energy projects.

How to Take Advantage of Renewable Energy Law in Romania

Renewable energy law in Romania presents many opportunities for companies operating in the renewable energy sector. By investing in renewable energy projects, companies can benefit from access to financing, increased profitability, and environmental benefits.

However, navigating the complex regulations surrounding the support scheme can be challenging. That’s why it’s important for companies to work with experienced attorneys who specialize in Romanian Energy Law.

With the right guidance, companies can take advantage of the opportunities presented by Romania’s support scheme for renewable energy and contribute to a cleaner and more sustainable future.

If you run a business in Romania, you might be wondering whether you need to register for VAT (value-added tax) and how to do it. VAT is a type of consumption tax that is added to the price of goods and services sold by businesses. It is collected by the businesses on behalf of the government and paid to the tax authority.

Registering for VAT is not only a legal obligation for some businesses, but also a smart move that can boost your credibility, expand your market, and save you money. In this article, we will explain everything you need to know about getting a VAT number in Romania, from the eligibility criteria to the registration process, and from the obligations to the advantages of being a VAT payer.

As an experienced accountant office in VAT procedures, we have helped many small and medium-sized businesses obtain a VAT number in Romania and navigate the complex tax system. We will share with you some tips and tricks that will make your life easier and your business more successful.

Who needs to register for VAT in Romania?

The first question you need to ask yourself is whether you need to register for VAT in Romania at all. The answer depends on several factors, such as:

• Your turnover: If your turnover exceeds 300,000 RON (about 62,000 EUR) in a calendar year, you are obliged to register for VAT in Romania. If your turnover is below this threshold, you can choose to register voluntarily or opt for a simplified tax regime that exempts you from VAT.
• Your intra-community transactions: If you perform intra-community acquisitions or supplies of goods or services, meaning that you buy or sell goods or services from or to other EU countries, you are obliged to register for VAT in Romania, regardless of your turnover. This also applies if you provide electronic services (such as software, e-books, online courses, etc.) to non-VAT payers (such as individuals or non-profit organizations) in other EU countries.
• Your location: If you are established in another EU country and only perform occasional transactions in Romania, you are not obliged to register for VAT in Romania, but you might need to appoint a fiscal representative who will handle your VAT obligations on your behalf.

Of course, there are some exceptions and exemptions that apply to certain types of businesses or activities.

For example, if you only perform exempt supplies of goods or services, such as education, health care, financial services, etc., you are not obliged to register for VAT in Romania. However, this also means that you cannot deduct or reclaim any VAT paid on your purchases or expenses related to your business activity.

How to register for VAT in Romania?

If you have determined that you need to register for VAT in Romania, the next step is to follow the registration process. The good news is that the process is mostly online and relatively straightforward.

The bad news is that it can take up to 30 days for your registration request to be approved or rejected by the competent tax authority.

Here are the steps involved:

• Fill out and submit the online form 088 (Declaration on the intention and ability to carry out economic activities involving operations within the scope of VAT) on the ANAF website (National Agency for Fiscal Administration). This form is mandatory for all businesses that want to get a VAT number in Romania and aims to verify their economic substance and credibility. You will need to provide information about your business activity, your associates, your bank account, your premises, your suppliers and customers, etc. You will also need to attach some supporting documents, such as the certificate of incorporation or registration of your business, the identity documents of the legal representative and the associates, the lease contract or proof of ownership of the business premises, etc.
• Fill out and submit the online form 010 (Declaration on tax registration / Statement for amending tax registration data) on the ANAF website. This form is used to request the issuance of a VAT number in Romania and certificate. You will need to provide information about your business name, address, legal form, fiscal regime, etc. You will also need to attach some supporting documents, such as the contracts or invoices related to the intra-community transactions or electronic services.
• Wait for the approval or rejection of your registration request by the competent tax authority. This can take up to 30 days from the date of submission of the forms and documents. You will receive a notification by email or post informing you about the outcome of your request. If your request is approved, you will receive your VAT number in Romania and certificate. If your request is rejected, you will receive an explanation of the reasons for rejection and instructions on how to appeal or resubmit your request.

Start charging and collecting VAT from your customers at the applicable rate (19%, 9%, or 5%, depending on the type of goods or services) and issuing invoices compliant with the legal requirements.

What are the obligations and advantages of being a VAT payer in Romania?

Once you have your VAT number in Romania, you will have some obligations and advantages that you need to be aware of. Here are the main ones:

• You will need to file monthly or quarterly VAT returns and pay any VAT due to the tax authority by the 25th day of the following month or quarter. The VAT returns are submitted online on the ANAF website and contain information about your VAT-related transactions, such as the total value of your sales and purchases, the amount of VAT charged and collected, the amount of VAT paid and deducted, etc. You will also need to submit recapitulative statements for your intra-community transactions and electronic services.
• You will need to keep accurate and complete records of all your VAT-related transactions and store them for at least 10 years. You will also need to issue invoices compliant with the legal requirements, such as including your VAT number in Romania, the date and number of the invoice, the name and address of the customer, the description and quantity of the goods or services, the unit price and the total price, the VAT rate and the amount of VAT, etc.
• You will be able to deduct and reclaim any VAT paid on your purchases or expenses related to your business activity from the VAT collected from your customers. This means that you will only pay the difference between the input and output VAT to the tax authority. If the input VAT is higher than the output VAT, you will be entitled to a refund of the excess amount. However, you will need to prove that your purchases or expenses are necessary and justified for your business activity and that you have valid invoices from your suppliers.
• You will benefit from simplified procedures and lower costs when trading with other EU countries or applying for EU funds. For example, you will not need to pay customs duties or import VAT when importing goods from other EU countries, you will not need to register for VAT in other EU countries where you perform occasional transactions, you will not need to charge VAT to your customers in other EU countries (except for electronic services), you will be able to use the reverse charge mechanism for certain transactions, etc.

Getting a VAT number in Romania is not as complicated as it might seem at first glance. If you follow this step-by-step guide, you will be able to complete the registration process smoothly and efficiently. However, if you encounter any difficulties or have any doubts, we recommend that you consult a professional accountant specializing in VAT procedures who can assist you with your specific situation.

Being a VAT payer in Romania can bring you many benefits for your business, such as increased credibility, access to EU markets, and tax savings. However, it also comes with some responsibilities that you need to fulfill diligently and accurately. By doing so, you will avoid any penalties or audits from the tax authority and ensure that your business complies with the tax regulations in Romania.

If you have any questions or feedback, please feel free to contact our specialized VAT accountants.

Real estate law in Romania can be complex, and many people have questions about how to navigate this legal landscape

Whether you are buying or selling property, or simply want to understand your rights and obligations as a property owner, it is essential to have a good understanding of Romanian real estate law.

In this article, we will answer the 10 most asked questions about real estate law in Romania.

Q1: What are the requirements for buying a property in Romania?
The requirements for buying a property in Romania differ depending on your citizenship. If you are an EU or EEA citizen, you can buy property in Romania without any restrictions. However, you will need a Fiscal Identification Number to complete the process if you are an EU citizen without a Romanian Personal Identification Number. If you are a non-EU citizen, you can only possess a building or other structure, not the land on which it is constructed. To use the land, you will need a permit. It is also important to confirm that the seller owns the property and to check the land survey records for a report from the land registration.

Q2: What is the process for buying a property in Romania?
The process for buying a property in Romania involves several steps. First, you will need to find a property you wish to purchase. Once you have found a property, you will need to hire a Romanian licensed attorney to assist with due diligence and help you draft a sale or purchase contract or real estate purchase promissory agreement. Both the buyer and the seller will be present at the closing together with a local notary. The property will then officially be yours after the deed has been recorded in the Romanian Land Registry. The costs for the purchase will also include transfer tax, notary fees, local taxes, and registration fees.

Q3: What is the due diligence process when purchasing a property in Romania?
Due diligence is an essential part of the process when purchasing a property in Romania. A due diligence report of the property can be prepared by a Romanian lawyer to analyze the legal situation. This report will provide information on the characteristics of the property, owners, risks, and legal restrictions. Due diligence also involves confirming that the seller owns the property and checking the land survey records for a report from the land registration.

Q4: What is the role of a Romanian real estate lawyer?
A Romanian real estate lawyer plays a crucial role in the process of buying and selling property in Romania. They can offer legal assistance with due diligence, drafting sale or purchase contracts, and representing clients in negotiations. A real estate lawyer can also help clients with property disputes and litigation, foreclosures, deed transfers, and coordination with lending agents or any other parties involved in the sale or purchase of a property.

Q5: What are the zoning restrictions for properties in Romania?
Zoning restrictions in Romania vary depending on the location of the property. The local government sets the zoning restrictions for each area, and they determine how the property can be used. It is important to check the zoning restrictions before purchasing a property to ensure that it can be used for the intended purpose.

Q6: What are the taxes associated with buying and selling property in Romania?
The taxes associated with buying and selling property in Romania include transfer tax, notary fees, local taxes, and registration fees. The transfer tax is based on the purchase price of the property and is typically paid by the buyer. Notary fees and registration fees are also paid by the buyer. Local taxes are typically paid by the seller.

Q7: What is the Romanian Civil Code, and how does it relate to real estate law?
The Romanian Civil Code is the legal framework that governs property law in Romania. It defines the rights and obligations of property owners, sets out the rules for property transactions, and regulates property disputes. It is important to understand the Romanian Civil Code when buying or selling property in Romania.

Q8: What is the Romanian Land Registry, and why is it important?
The Romanian Land Registry is a public record of all land and property ownership in Romania. It provides information on the legal status of the property, including ownership, mortgages, and liens. It is essential to check the Romanian Land Registry when purchasing a property to ensure that the seller owns the property and that there are no outstanding mortgages or liens.

Q9: What is a cadastral documentation, and why is it important?
Cadastral documentation is a record of the exact location, size, and boundaries of a property. It is essential to obtain cadastral documentation when purchasing a property to ensure that the property’s boundaries are clearly defined, and there are no disputes over its ownership.

Q10: What is the process for resolving property disputes in Romania?
Property disputes in Romania can be resolved through negotiation, mediation, or litigation. It is always best to try to resolve disputes through negotiation or mediation before resorting to litigation. If litigation is necessary, a Romanian real estate lawyer can represent you in court and help you achieve a favorable outcome. It is important to note that property disputes can be complex and time-consuming, so it is best to seek legal advice as soon as possible if yo

In conclusion, understanding real estate law in Romania is essential when buying or selling property in the country. The process of purchasing a property in Romania involves several steps, including due diligence, drafting sale or purchase contracts, and registering the property with the Romanian Land Registry. A Romanian real estate lawyer can provide invaluable assistance throughout this process, ensuring that your rights are protected and that the transaction proceeds smoothly.

By understanding the legal framework surrounding property transactions in Romania, you can avoid potential pitfalls and ensure that your investment is protected.

Are you looking for ways to get EU citizenship legally? If so, you’re not alone.

Many people around the world dream of having an EU passport for the benefits it provides, such as visa-free travel to many countries, access to world-class education and healthcare, and the ability to live and work in any EU member state.

In this article, we’ll discuss five legal ways to obtain EU citizenship, including:

1. Citizenship by descent
2. Citizenship by marriage
3. Citizenship by investment
4. Citizenship by naturalization
5. Citizenship by adoption

We’ll explore the eligibility criteria for each option, the application process, and the benefits of obtaining EU citizenship through these channels.

1. Citizenship by Descent

If you have ancestors who were citizens of an EU country, you may be eligible to apply for citizenship by descent. This is one of the most straightforward ways to obtain EU citizenship, as you simply need to prove your lineage and fulfill any other eligibility requirements.
Each EU country has its own rules regarding citizenship by descent, but in general, you’ll need to provide documentation such as birth certificates, marriage certificates, and other evidence of your ancestry. You may also need to demonstrate a certain level of proficiency in the language of the country in question.
Citizenship by descent is a popular option for those with European roots, as it allows them to reconnect with their heritage and gain the benefits of EU citizenship.

2. Citizenship by Marriage

If you’re married to an EU citizen, you may be eligible to apply for citizenship by marriage. This option is available to both men and women, and the requirements vary depending on the country in which your spouse is a citizen.
In general, you’ll need to have been married for a certain period of time, typically two to five years, and demonstrate that you have a genuine relationship with your spouse. You’ll also need to meet any other eligibility criteria, such as language proficiency and residency requirements.
Citizenship by marriage can be a great option for those who are in a committed relationship with an EU citizen and want to make their life together more stable and secure.

3. Citizenship by Investment

Many EU countries offer citizenship by investment programs, which allow individuals to obtain citizenship in exchange for a substantial investment in the country’s economy.

These programs can be expensive, but they can also be an attractive option for those who have the financial means to make a significant investment.

The requirements for citizenship by investment vary depending on the country in question, but in general, you’ll need to invest a certain amount of money in real estate, government bonds, or other approved investments.

You may also need to meet residency requirements and demonstrate a clean criminal record.
Citizenship by investment can be a good option for those who are looking for a relatively fast and straightforward path to EU citizenship, as the investment requirements can often be met within a year or two.

4. Citizenship by Naturalization

Citizenship by naturalization is available to those who have lived in an EU country for a certain period of time and meet other eligibility criteria. The length of time required varies depending on the country, but in most cases, you’ll need to have lived in the country for at least five years.

To qualify for citizenship by naturalization, you’ll also need to meet other requirements such as language proficiency, knowledge of the country’s history and culture, and a clean criminal record.

You may also need to demonstrate that you have been financially self-sufficient during your time in the country.

Citizenship by naturalization can be a good option for those who have already been living in an EU country for an extended period and want to formalize their status as a citizen.

5. Citizenship by adoption

Citizenship by adoption in the European Union (EU) can vary depending on the specific country and its citizenship laws. Generally, adoption alone does not confer citizenship in most EU countries.

In most cases, an adopted child must meet certain criteria to become a citizen, such as residing in the country for a certain period of time or having at least one adoptive parent who is already a citizen.

Additionally, some EU countries may have specific requirements or restrictions for children adopted from certain countries.
It is important to note that citizenship laws can change over time, so it is best to check with the relevant authorities or seek legal advice for the most up-to-date information on citizenship by adoption in a specific EU country.

Our Romanian lawyers will offer details for this matter if you contact us.

The most common forms of companies in Romania are the Limited Liability Company, the Joint Stock Company and Branches.

                                     The Limited Liability Company in Romania has:

• The share capital is divided into equal shares and, according to Law no. 31/1990, it cannot be less than 1 RON.
• A Limited Liability Company in Romania may have between 1 and 50 shareholders.
• The shareholders are liable in the limit of the contribution to the share capital.

       Documents requested by the Trade Register for the company formation are:

• Proof of reservation of company name
• Articles of incorporation for the new Romanian company
• Excerpts issued by the Trade Register where the shareholders are incorporated- legal entities (if they are)
• The identity document of the shareholders natural persons (ID, Passport)
• Passport or ID of the future director of the Romanian company
• The document attesting the right of use over the space with destination of registered office ( e.g. lease agreement, property) and the ownership property documents
• standard application.

                                    Taxation of LLC company in Romania 2023

The tax rates used for micro-company income tax are:

• 1% for micro-companies with one or more employees.
• 3% for micro-companies with no employees.

The standard corporate income tax rate is 16%. Taxpayers that are carrying on activities such as gambling and nightclubs are either subject to 5% rate of the revenue obtained from such activities or to 16% of the taxable profit, depending on which is higher.

Romanian micro company tax regime starting with the first fiscal year and will remain under this tax regime if it meets all of the following criteria:

• The maximum threshold of annual turnover is EUR 500.000.
• Income generated from consultancy and management activities is not more than 20% of the annual turnover;
• It does not carry out any banking, insurance and reassurance, capital markets, gambling or upstream oil & gas activities;
• The share capital must be held by entities other than the state or the local authorities.

Moreover, the Romanian company has to pay to the state the imposed social contributions (pensions, health, work contribution) and the income tax for each employee.

There are no citizenship or residency requirements in order to register a Limited Company in Romania.

Our team of Romanian Lawyers can assist you for the set up of a LLC in Romania and our team of Romanian accountants can take on the fiscal set up of your newly formatted company.

Contact us for more info in order to set up a Romanian Limited Liability Company.

Depending on your citizenship, the procedure for purchasing a new property in Romania can vary.

Fortunately, as long as the property serves as your secondary residence, EU and EEA individuals will have no trouble purchasing real estate in Romania.

You will need a Fiscal Identification Number to complete the process if you are an EU citizen without a Romanian Personal Identification Number.

If you have your residency permit, getting this number is simple. The contract will be void if you don’t begin the procedure of obtaining this Fiscal Identity Number before you begin the purchasing process.

The procedure will be a little more challenging for a non-EU citizen because a non-EU citizen can typically possess a building or other structure but not the land on which it is constructed.

To utilize the home and land, they will instead need a permit; nevertheless, if the building is demolished, they will lose all legal rights to the property.

In order to confirm the seller owns the property and to check the land survey records for a report from the land registration, you will also need to locate a Romanian licensed attorney.

Also, a real estate Romanian lawyer can do a due diligence report of the property in order to analyze the legal situation.

Our Romanian lawyers can offer the legal help with a real estate due-diligence (information on the characteristics of the property, owners, risks and legal restrictions)  and also to draft a sale or purchase contract or real estate purchase promissory agreement, while providing assistance and representation in the negotiation process for concluding such contracts.

Both the buyer and the seller will be present at the closing together with a local notary. The property will then officially be yours after the deed has been recorded in the Romanian Land Registry.

The costs for the purchase will also include transfer tax, notary fees, local taxes, and registration fees.

Contact us for further information.

According to article 373 of the Romanian Civil Code, the divorce can take place for several reasons, respectively:

–By the agreement of the spouses, at the request of both spouses or of one of the spouses if it is accepted by the other spouse;

–When, due to valid reasons, the relationship between the spouses is seriously damaged and the continuation of the marriage is no longer possible.

-At the request of one of the spouses, after a de facto separation lasting at least 2 years.

–At the request of one of the spouses whose state of health makes it impossible to continue the marriage;

Divorce for good reasons that make it impossible to continue the marriage.

The reasons are not described by the Civil Code, but most divorce cases are initiated precisely because of such solid grounds.

If the fault belongs to both, that is, you no longer understand each other and the marriage is no longer a peaceful and harmonious one, nor can you fix it, the fault or guilt is shared (i.e, both spouses are to blame for the breakdown of the marriage). It means that you no longer love and want to be together so you are constantly fighting. If the fault belongs only to one spouse, that is, that spouse has a behavior or has done a certain deed that cannot be forgiven, the fault of the marriage is exclusive.

The rule in the Romanian law is that the divorce is pronounced on the joint fault of the spouses, given that (in general) both contribute to the breakdown of the marriage to a greater or lesser extent.

In the conditions where the divorce would be pronounced due to joint fault and there are no children in the relationship or there are no chlidren but you have agreed on parental authority, our team of romanian divorce lawyers advice is to opt for a divorce by agreement.

According to the provisions of art. 933 para. (1) of the Romanian Code of Civil Procedure “The court will pronounce the divorce due to the fault of the defendant spouse when, due to solid reasons attributable to him, the relations between the spouses are seriously damaged and the continuation of the marriage is no longer possible.”

In other words, if only one of the spouses is to blame for the breakup of the marriage, then the court will dissolve the marriage, considering the exclusive fault of this spouse.

The Romanian Law does not limit these cases (nor could it, given the complexity of relationships in a couple) but in practice we have identified the following cases of exclusive fault as usual reasons:

• the infidelity of one of the spouses;
• domestic violence of one of the spouses;
• alcohol, drug or gambling addiction of one of the spouses;
• bad treatment applied to children by one of the spouses; neglect of the family by one of the spouses;

Reasons why you should seek a dissolution of the marriage due to the sole fault of the defendant:

• Moral damages – you can get compensation for the damage suffered as a result of the dissolution of the marriage.
• Compensatory benefit – if the marriage lasted for more than 20 years and the dissolution of the marriage would produce a major imbalance in your life, you can obtain the obligation of the guilty spouse to pay periodic damages called compensatory benefit.
•  Parental authority – since the grounds for dissolution of marriage partly overlap with those regarding sole parental authority, a valid reason for seeking dissolution of marriage due to the sole fault of the other spouse is to obtain sole parental authority and domicile of the minor.

Sole fault  would actually lead to more legal fight from the other spouse and a longer trial.

For more info on this subject, please contact us!

AI law is a rapidly developing area that requires legal and regulatory frameworks to ensure that AI is developed and used in a responsible and ethical manner.

While there are many benefits to using Artificial Intelligence, there are also some legal and ethical concerns that need to be considered.

What are some legal implications related to AI.

1. Intellectual Property: Artificial Intelligence systems can produce copyrightable works, and the issue of “ownership” and licensing of AI systems and their output are still unresolved.

2. Discrimination: AI-driven decision-making could result in claims of discrimination on the basis of race, gender, age or sexual orientation.

3. Privacy: A potential for privacy violations due to the collection and analysis of large amounts of personal data by AI systems.

4. Accuracy and Misuse: AI models are only as accurate as the data used to train them, and errors or false assumptions could lead to incorrect results or undesired outcomes.

5. Data Security: Security risks such as data breaches, malicious attacks and other hardware or software malfunctions can lead to the leakage of confidential data.

6. Autonomous Systems: Autonomous systems can cause physical or economic harm and require legal frameworks to limit their scope and consequences.