Regulations governing foreign investments in Romania

In 2023, Romania gave 105 clearances for foreign direct investments.

This shows the growing interest in Eastern Europe’s economy.

Knowing the rules for foreign investments in Romania is key for investors.

Romania’s rules for foreign investment have changed a lot.

This is to balance economic growth with national security.

Stricter rules for non-EU investors started in April 2022.

These changes follow European trends and change the investment landscape in Romania.

Understanding Romania’s investment rules is crucial.

You need to know about the new screening process and how it treats EU and non-EU investors differently.

This guide will help you understand Romania’s foreign investment regulations.

It will aid in making smart investment choices in Romania.

Key Takeaways

• Romania introduced stricter FDI rules in April 2022, particularly for non-EU investors.
• A minimum investment value of €2 million triggers mandatory screening in sensitive sectors.
• The FDI Screening Commission (CEISD) oversees the review process for foreign investments.
• Strategic sectors under scrutiny include critical infrastructure, national security, and financial systems.
• EU investors generally face a shorter screening period compared to non-EU investors.
• Significant penalties can be imposed for non-compliance with FDI regulations.
• Recent amendments have strengthened the enforcement mechanisms for FDI rules.

Overview of Romania’s Foreign Investment Framework

Romania’s foreign investment framework has changed a lot, shaping its economy.

The country works hard to make it easy for businesses to thrive.

It has a strong legal system and regulatory bodies to support this effort.

Current Investment Climate

Romania’s economy has grown steadily, with a 4.1% increase in 2022 and 2.1% in 2023.

It has a big market with 19 million consumers. In 2022, foreign investment reached $11.2 billion, a 6.6% increase from the year before.

The total foreign investment stock is $116 billion, which is 38.4% of its GDP.

Key Regulatory Bodies

Several groups watch over Romania’s investment rules:

• FDI Screening Commission (CEISD)
• Romanian Competition Council (RCC)
• Romanian Government

These bodies make sure investments follow national security and public order rules.

They also follow EU laws.

Historical Development of FDI Regulations

Romania’s FDI rules have changed a lot, especially in 2022 and 2023. Important updates include:

• Introduction of EU investor definitions;
• New rules for investment screening;
• A $2.17 million threshold for investment reviews.

These changes show Romania’s effort to attract foreign investment while protecting its interests.

The rules keep getting better, aiming to attract more investment while keeping things in check.

Legal Foundation for Foreign Investments in Romania

Romania’s laws for foreign investments have changed a lot.

This has made the country more welcoming to foreign investors.

The country’s laws and recent updates show its strong desire to attract foreign investment.

Primary Legislative Acts

The main laws for foreign investments in Romania are Law no. 164/2003 and Government Emergency Ordinance (GEO) no. 46/2022.

These laws set the stage for investment opportunities in Romania.

They also outline the rules for investing abroad.

Recent Amendments and Updates

In 2023, Romania made important changes to improve its business environment.

These updates include defining “EU Investors” and giving more power to the FDI Screening Commission.

Now, investments over €2 million must be reviewed under GEO no. 46/2022.

EU Regulation Integration

Romania has made its policies match EU standards by adopting FDI Regulation 2019/452.

This step makes the business environment stronger while following EU rules.

It helps attract investments while protecting Romania’s interests.

Foreign investors should know that not following GEO no. 46/2022 can lead to fines up to 10% of their global turnover.

These rules, in effect since April 18, 2022, show Romania’s dedication to responsible foreign investment.

Foreign Investments in Romania: Screening Process

Romania’s rules for foreign investments have changed a lot.

This affects how companies enter the Romanian market.

A new law, starting on July 18, 2024, now checks both EU and non-EU investors.

This changes the business landscape in Romania.

Now, any investment over €2 million in key sectors must be checked.

The FDI Screening Commission (CEISD) and the Romanian Competition Council are key in this.

Investors must give all needed info in 15 days.

CEISD then has 60 days to give an opinion.