Romania to Offer €400k Golden Visa

Romania’s Proposed Investor Visa is Aiming to Attract Global Capital

Romania is considering introducing a Residency by Investment Program that would grant non-EU citizens a five-year renewable residence permit in exchange for a minimum investment of €400,000. This proposed legislation, currently in draft form, is set to position Romania as a new player in the European investment migration market. For high-net-worth individuals, entrepreneurs, business owners, digital nomads, and IT professionals, this offers a compelling new solution for tax optimization, second residency, and gaining a potential foothold in the European Union.

Eligible Investment

The draft legislation outlines four eligible investment categories, all requiring a minimum commitment of €400,000. These options provide flexibility for investors. They include the purchase of Romanian government bonds with a minimum five-year maturity. Alternatively, investors can acquire real estate valued at €400,000 or higher, which must be maintained for at least five years. Furthermore, capital can be committed through investments of €400,000 or more in Financial Supervisory Authority (ASF)-authorized investment funds, or by purchasing shares in Romanian-listed companies worth a minimum of €400,000. Investors must maintain their chosen investment throughout the entire five-year permit validity period.

No Minimum Stay Required

The proposed residence permit offers significant appeal for international professionals with global commitments, as it would carry no minimum annual stay requirement in Romania. This valuable feature allows global mobility experts to retain their residency status without having to physically reside in the country for a fixed number of days each year. This makes the Romanian Golden Visa an excellent option for those who primarily seek EU access and a long-term residency backup plan without immediate relocation.

Romania’s authorities are prioritizing security and compliance in the new program. Applicants must prove the legal origin of their funds, avoid placement on any international sanctions lists, and successfully pass security risk assessments. The plan mandates consultations with the Romanian Intelligence Service (SRI), the Foreign Intelligence Service (SIE), and the National Office for the Prevention and Combating of Money Laundering (ONPCSB) before issuing permits. This multi-agency vetting ensures the program maintains high standards of integrity and security.

Pathway to Romanian Citizenship

A major benefit of the program is the potential path to citizenship. The draft law indicates that participants would gain access to permanent residency after five years and the possibility of applying for Romanian citizenship. However, the precise timeline for citizenship eligibility remains ambiguous in the proposal. Standard Romanian citizenship law typically requires eight years of legal residence for naturalization. This period can be reduced by up to three years for applicants who demonstrate active participation in economic life or cultural contributions. Therefore, the total path to a Romanian passport is still being clarified.

Family Inclusion

Investors would also be able to include immediate family members under the same permit. This means spouses, partners, and dependent children could benefit from the residency rights and the potential path to permanent residency. This is a crucial feature for high-net-worth individuals planning a strategic move for their entire family, ensuring unified status and security within Europe.

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The Legislative Process

Before this proposal becomes law, it must successfully pass through Romania’s bicameral legislative process. The bill will be reviewed and debated by parliamentary committees, including those focusing on economic affairs, legal matters, and national security. The legislation requires approval from both the Senate and the Chamber of Deputies. The Constitutional Court may also review the law for compliance, especially given its implications for EU law and residence rights. This multi-stage process means the final regulations and timeline are subject to change.

Romania’s proposal is part of a growing trend of countries launching new investor residence programs. Earlier this year, nations like the Maldives, Kazakhstan, and Uzbekistan launched similar programs to attract foreign investment. The UAE also expanded its Golden Visa. By introducing its own Golden Visa, Romania aims to compete regionally and globally, leveraging its low cost of living, growing economy, and accession to the Schengen Area to attract capital and talent.

Economy in Romania and Potential Risks

Romania is attracting foreign interest due to its strong economic growth and stability within the EU. The government views this program as a way to stimulate the economy, bringing significant funds into the real estate and financial sectors. This new inflow of capital will help support job creation and economic development. For investors, placing assets in a growing EU economy offers both diversification and stability.

A potential ambiguity in the draft law concerns the exact timeline for citizenship eligibility, as it is unclear whether the five-year residency grants an immediate right to apply for naturalization or whether investors must first meet the standard permanent residency requirements. As with any new program, investors must recognize that the ultimate success of the program depends on its legislative execution. Working with experts is essential to understand the final legal text and any potential delays.

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Romania’s Tax System Explained

Romania’s tax system is designed to be attractive to both individuals and businesses. Here’s a quick overview:

• Personal Income Tax – A flat 10% rate applies to most types of income, including salaries, freelance income, and rental income.
• Social Contributions – Employees pay 25% for pensions (CAS) and 10% for health insurance (CASS). Employers contribute an additional 2.25%. Self-employed individuals (PFAs) pay similar contributions, but the amounts may vary depending on their income.
• Corporate Tax – The standard rate is 16% on profits.
• Microenterprise Tax – This is where it gets really interesting. If your company has a turnover of less than €500,000, you can choose to pay-
  • 1% on revenue (not profit) if you have at least one employee.
  • 3% on revenue if you have no employees.

This microenterprise tax system is incredibly attractive for small businesses and freelancers, as it simplifies tax calculations and can significantly reduce your tax burden. Reloc8 Online can explain you how to benefit.

How to start a Business in Romania

Romania makes it relatively easy for foreigners to set up a company-

• Company Types – The most common is a Limited Liability Company (SRL). You can also be a freelancer (PFA) or set up a larger corporation (SA).
• Directors and Shareholders – Can be Romanian or foreign, and they don’t need to live in Romania.
• 100% Foreign Ownership – You can own the entire company yourself.
• Fast Setup – You can register a company online, often in just a few days.
• Low Capital Requirements – For an SRL, you only need a small amount of share capital (around €40).

Reloc8 Online can handle the entire company formation process for you, making it quick and painless.

Lifestyle in Romania

Romania offers a fascinating blend of traditional charm and modern development. You’ll find:

• Historic Cities – Bucharest, the capital, is known for its architecture and nightlife.
• Beautiful Countryside – The Carpathian Mountains and Transylvania offer stunning scenery.
• Affordable Living – Compared to Western Europe, Romania is very affordable.
• Growing Economy – Romania is one of the fastest-growing economies in the EU.

Start your European relocation journey with RELOC8 ONLINE

Understanding the complexities of Romania’s proposed Golden Visa, including the final investment regulations and the path to citizenship, requires specialized knowledge. We provide expert guidance on Tax Structure and Tax Migration. We will help you assess your eligibility for the program and manage the entire application process. Our services are designed to help high-net-worth individuals, entrepreneurs, business owners, digital nomads, and IT professionals make informed decisions about their tax optimization and global mobility.

If you are seeking a cost-effective European second residency with minimal stay requirements and a path to EU citizenship, Romania presents a compelling new opportunity. We can help you build custom strategies to protect your wealth and achieve your global mobility goals. Optimize your tax strategy and redefine your international presence. Start Your Journey Today. Right Place, Right Tax, Right Now. Book a Consultation to explore how Romania can benefit you.

Disclaimer: The information provided in this article is for informational purposes only and was obtained from verifiable sources at the time and date of publication. It is not in any shape or form financial or investment advise and should not under any circumstances be treated as such. This information does not constitute legal advice and should not be relied upon as such. RELOC8 ONLINE is not responsible for any errors, inaccuracies, or inconsistencies that might be present in the content published here and readers are advised to carry out their own research on the topics discussed before making deceisions that might impact their circumstances. For the latest information and most accurate details, please refer to our Latest News page or contact us directly.