Remedia

Address: 13/A, Soldat Alexandru Magatti St.
Phone: +40 21 326 73 65
Web: www.remediadid.ro

If you’re interested in stock market investments in Romania, you can follow the trading session results  and market trends on the Bucharest Stock Exchange website. If you want to buy shares, there are a couple of brokerage firm to choose from.

Bucharest Stock Exchange

Address: 34-36 Carol Blvd.
Phone: +40 21 307 95 00
Web: www.bvb.ro
The website is also available in English.

Stock brokers and Forex

Swiss Capital

Address: 11-15, Tipografilor Str., S-park, building A2, 3rd Floor
Phone: +40 214 08 42 00
Web: www.swisscapital.ro
It’s the biggest Romanian brokerage house.

Intercapital Invest

Address: 33, Aviatorilor Blvd, 1st Floor, Sector 1
Phone: +40 212 22 87 31
Web: www.intercapital.ro
One of the biggest retail brokerage firms.

Tradeville

Address: 34-36, Carol I Blvd., 10th Floor, Sector 2 (the Bucharest Stock Exchange Building)
Phone: +40 213 18 75 55
Web: www.tradeville.eu
One of the best online trading platforms.

X-Trade Brokers

Address: 18, Eroilor Blvd., Sector 5
Phone: +40 314 25 54 90
Web: www.xtb.ro
Forex brokers

BDR Associates

Address: 1A Nikolai Gogol St.
Phone: +40 21 231 13 19
Web: www.bdr.ro

McCann PR

Address: 18 Jules Michelet St.
Phone: +40 21 302 25 00
Web: www.mccannpr.ro

Oxygen PR

Address: 64 Caderea Bastiliei, 7th Fl.
Web: www.oxygenpr.ro

Rogalski Grigoriu Public Relations

Address: 11 Grigore Mora St.
Phone: +40 21 231 21 21
Web: www.r-g.ro

Scriptmedia

Address: 7 Ion Racoteanu St., apt. 3
Phone: +40 21 320 41 21
Web: www.scriptmedia.ro

Overview of Romanian Personal Income Tax

By Claudia Sofianu

Individuals domiciled in Romania are considered to be tax residents and are taxed on their worldwide income (with certain exceptions). During the first three years of meeting certain residency criteria, individuals who are not domiciled in Romania are subject to tax on their Romanian-source income, regardless of where the income is earned. An individual who meets the tax residency criteria for three consecutive tax years or who carries out independent activities through a permanent establishment in Romania for a period of three consecutive tax years becomes subject to tax on worldwide income beginning with the fourth tax year.
Foreign individuals who are working in Romania are taxable from their first day of presence. However, if they are tax residents in another country and they meet the criteria from the applicable Double Tax Treaty, they may be exempt from Romanian tax liabilities, provided that a tax residency certificate is made available to the authorities within 15 days of the beginning of activities.

A. Rates

Most types of income are subject to tax at a flat rate of 16%, applied to salary income, income from freelance activities, rental income, pension income, prizes, investment income and other.
Special tax rates apply to income from gambling and transfer of property ownership. The taxation of various types of income is summarized below.
Employment income includes: salaries, benefits in cash or kind, salary premiums, other income received by an individual based on an employment agreement, fees and compensation paid to directors and managers of private enterprises and to members of the board of directors, general shareholders meeting, administration council and audit committee.
Income from independent activities includes income from commercial activities, freelance activities and transfer of intellectual property rights. The net taxable income from freelance activities is computed as gross income less specified deductible expenses. Individuals engaged in freelance activities must make advance tax payments on a quarterly basis by the 15th day of the last month of each quarter.

Taxpayers who earn income from independent activities from which a 10% advance income tax is withheld at source, can opt for a final withholding tax at a rate of 16%.
Taxable income from intellectual property rights is computed by deducting from gross income expenses representing 20% of gross income and compulsory social security contributions. A 10% advance income tax must be withheld at source by payers of income from intellectual property rights by the 25th day of the following month. Taxpayers who earn income from intellectual property rights can opt for a final withholding tax at a rate of 16%.

Rental income. Gross rental income consists of amounts stipulated in rental agreements, as well as certain expenses borne by the tenant that are the landlord’s liability according to the law. The rental income is taxable in the tax year to which the rent relates. It is reduced by a flat 25% and the difference is taxed by 16%. As an exception, taxpayers may opt for the determination of the net rental income based on single entry accounting.

Investment income includes: dividends, interests, gains from transfers of securities, etc.
Any amount paid in excess of the market price by a legal entity for goods or services provided by a shareholder is treated as a dividend if the beneficiary of such amount was not subject to income tax or profits tax on the amount. Amounts received from holding participation titles in closed investment funds are treated similarly to dividends. A 16% final withholding tax is imposed on dividends.

Taxable income from interest is considered to be any income in the form of interest other than state bonds.

A 16% final withholding tax is imposed on interest income as of 1 July 2010. The tax must be remitted by the 25th day of the following month. Capital gains are subject to a 16% final tax.
A 16% advance tax is imposed on gains derived from sale and purchase transactions in foreign currencies with subsequent term settlement, as well as similar operations.
Income whose source was not identified should be subject to 16% income tax applied to the taxable base adjusted according to the procedures and indirect methods of reconstitution of revenues or expenses. The income tax and late payment penalties will be calculated by the tax authorities.

B. Inheritance and gift taxes

No taxes are levied on inheritances or gifts, except for revenue subsequently derived from these items.

C. Social charges

Employees are required to make the following monthly contributions:

Employers are required to make the following monthly contributions:

For 2011, the average gross national salary earning is RON 2,022 / month and the minimum gross salary per economy is RON 670 / month.
Currently, foreign nationals working in Romania must pay a monthly health fund contribution of 5.5% of their taxable income. EU citizens may be exempt from social charges if relevant European certificates are obtained.

D. Tax filing and payment

Foreign nationals assigned to Romania must register for tax purposes within 15 days after beginning their activities and pay income tax on a monthly basis. If the individual is on a local payroll, the local employer must calculate, withhold and pay the income tax. Expatriates employed abroad but working in Romania must file monthly individual tax returns and pay monthly tax and, if applicable, social charges by the 25th day of the following month.

E. Double tax relief and tax treaties

Romania has entered into double tax treaties with several countries. In addition, the EU Savings Directive provides for citizens of EU member states an exemption from withholding tax on savings income received in Romania if a tax residency certificate is provided.

F. Totalization agreements

Romania has entered into Totalization Agreements with several countries for the purpose of avoiding double taxation of income with respect to social charges:

City Gate Towers

Address: 3-5 Piata Presei Libere, Sector 1
Tenants: Romtelecom, Rompetrol, E.On

BRD Tower

Address: 1-7, Ion Mihalache Blvd. (Piata Victoriei)
Owner: BRD

Charles de Gaulle Plaza

Address: 15, Charles de Gaulle Plaza, Sector 1
Tenants: Raiffeisen Bank, Vodafone

Tower Center

Address: 15-17 Ion Mihalache Blvd., Sector 1
Tenants: The building is currently empty due to litigation.

Bucharest Financial Plaza

Address: 15, Calea Victoriei, Sector 3
Owner: BCR

IBC Modern

Address: 34-36, Carol I Blvd., Sector 2
Tenants: Bucharest Stock Exchange

America House

Address: 5-9, Nicolae Titulescu Blvd. (Piata Victoriei)
Owner: GTC

Europa House

Address: 51-53, Lascar Catargiu Blvd., (Piata Victoriei)
Tenants: Orange

The Lakeview

Address: 301-311, Barbu Vacarescu Str., Sector 2
Tenants: PwC, RBS Bank

Overview of Romanian immigration requirements for foreign nationals

By Claudia Sofianu

I. EU/ EEA citizens

In accordance with the current Romanian immigration rules, EU/ EEA citizens may enter Romania without being required to obtain a visa and they are allowed to stay herein up to 90 consecutive days since the last entry, without having the obligation to apply for registration certificates (former ”residence permits”).
If EU/ EEA citizens intend to stay in Romania for longer periods, they should request a registration certificate for one of the following purposes:

- dependent or independent activities (i.e., local employment, secondment, as administrators of Romanian companies or freelance activities);

- a document confirming the purpose of stay should be presented upon registration (e.g., employment contract, secondment letter, letter from Romanian company confirming the assignment, mandate contract, as the case may be);

- have available means of support in Romania (amounting to at least approx. EUR 35/ individual); in addition, the persons in question must prove that they are insured under the Romanian health insurance system; in practice, the proof of health coverage in another EU/ EEA Member State – done with a valid European Health Insurance Card (“EHIC”) – is also accepted;

- enrollment with an educational institution authorized according to Romanian legislation;

- as family members of a resident; depending on the case at hand, Romanian authorities require for the marriage certificates or personal documents to be apostilled, legalized or over-legalized.

II. Third-country nationals

Romania has published a new immigration act, effective 31 July 2011. It amends the previous immigration law, providing for additional documentary requirements for work permit applications. This results in additional time for getting in compliance with Romanian immigration requirements.

As a general rule, non-EU citizens intending to conduct certain activities in Romania are required to obtain a related type of Romanian visa before entering the country. The Romanian legislation provides for two main categories of visas for foreign individuals, with single or multiple entries: short-term visa; and long-term visa.
Visas of both categories allow foreign citizens to stay in Romania for an aggregate period of 90 days within a 6-month period. The short-term visa does not give the right to work in Romania and may not be extended. The long-term visa is currently issued based on a valid work authorization and therefore, once obtained, grants the right to stay and carry out activities in Romania.

A. Entry visas

Citizens of following jurisdictions may enter Romania without a visa and stay herein for up to 90 days in a 6-month period computed as from the date of first entry:

(a) The exemption from visa obligation applies only to passport holders of the Hong Kong Special
Administrative Region (SAR) of China.
(b) The exemption from visa obligation applies only to passport holders of the Macau SAR of China.
(c) The exemption from visa requirement applies only to holders of biometric passports.
(d) The exemption does not apply to holders of Serbian passports issued by Department of Serbian Coordination (“Koordinaciona Uprava”).

The exemption from visa requirement applies to British nationals of a territory subordinated to British government.

Another special condition concerns the following countries (nationalities) which are required to obtain a special invitation letter approved by Romanian Immigration Office in order to apply for a short-term visa for Romania:

B. Work authorizations

Companies based in EU or EEA Member States can second EU and EEA nationals to Romania without obtaining a work authorization. The seconded individuals apply directly for registration certificates. However, in case the secondees are not EU/ EEA nationals, although still exempt from Romanian work authorization, they have to follow the procedure for obtaining Romanian residence permits (and not for registration certificates).
The secondment of non-EU nationals by an employer located outside EU is limited to one year within a 5-year period.
The right to stay of non-EU individuals may be extended – by applying for an extension of the residence permits – as follows:
- for local employment purposes, the extension may be granted based on the work authorization; it should be noted that, according to the amended immigration law, when transferring from assignment contract to local employment agreement – starting with the 2nd year of activities in Romania – the formalities are the same as under a direct local employment;
- whereas, foreigners assigned as heads of foreign company branches and foreign citizens named as administrators of Romanian companies are exempt from the obligation to obtain Romanian work authorizations, but are still required to obtain a Romanian residence permits.
The types and number of work authorizations to be granted to foreign nationals in 2011 are:

• Work authorizations for permanent workers (local employees) – 4,000

• Work authorizations for posted workers (assignees) – 600

• Work authorizations for seasonal workers – 200

• Nominal work authorizations – 100

• Work authorizations for workers on probation – 100

• Work authorizations for athletes – 300

• Work authorizations for cross – border workers – 200

C. Residence permits

Both short-term and long-term visas allow foreign nationals to stay for up to 90 days in a 6-month period. Although the short-term visa cannot be extended, the long-term visa can be extended through an application for a residence permit.
The following documents are required for a visa extension for the individuals locally employed, but also for individuals that are seconded to Romania from a non-EU/ EEA country as of July 2011:
- work authorization;
- medical insurance for the visa period;
- proof of accommodation and means of support in Romania;
- other documents, depending on the purpose of stay.

For instance, in case of administrators of a Romanian company, the respective company must prove that the following cumulative conditions are met:
- the person was formally appointed as company’s administrator;
- at the application date, the person is not a shareholder within the company concerned, or within another Romanian company and was not during the last 2 years before the application either;
- there is no other third-country national within the company concerned who may have obtained a residence right for this purpose, and
- company’s share capital contribution or technology transfer is of at least 50,000 Euro.

Moreover, visas for commercial purposes can be requested by foreign citizens who are or will become shareholders or associates of a Romanian company. One of the documents to be obtained for this type of visa is the endorsement from the Romanian Agency for Foreign Investments which is granted subject to certain cumulative conditions, as for example:
- existence of a business plan;
- evidence, by means of a bank statement, that they hold the funds and will make investments of at least EUR 150,000 (for a joint-stock company) and EUR 100,000 (for a limited liability company);
- they will create at least 10 jobs (in a limited liability company) and 15 jobs (in a joint-stock company).

Documents such as study diplomas, marriage certificates, birth certificates should be over-legalized before the arrival in Romania (either with Hague Convention Apostille, where applicable, or with the relevant Romanian consular offices after obtaining an attestation from local foreign authorities).

Similar residence permits can be issued to immediate family members accompanying a foreign individual in Romania – i.e., spouse, children, parents and parents-in-law – if they cannot support themselves and do not benefit from family support in the home country.
For foreign nationals who are family members of Romanian citizens, EU or EEA individuals, the Romanian Immigration Office issues residence cards with a validity of 10 years.

D. Blue Card applications

The EU Blue Card was introduced in the Romanian legislation as of July 2011.
The Blue Card is a new EU wide immigration category designed to encourage use of workforce by employing highly skilled migrants. Qualifying criteria are for the respective migrant to have a valid employment offer, to hold advanced qualifications and be paid at least 1.5 times the average gross annual salary in the host country.
Benefits are that, after a period of 2 years, the respective third-country individual may change employer within the host country without having to seek prior work authorization.
Moreover, after 18 months in the respective country based on EU Blue Card, the person should have the right to work as skilled third-country migrant across EU Member States, subject to each state’s approval.

E. Family and personal considerations

Family members. The spouse of a non-EU or non-EEA national holding a local work authorization must apply for a separate work authorization if intending to work in Romania. She must also obtain the appropriate visa to stay herein.
Customs regulations for individuals. Special duty treatment is provided for personal belongings of individuals establishing domicile or residence in Romania, goods introduced into Romania on marriage, inherited goods and household goods used for furnishing a residence in Romania and personal effects shipped through parcel and postal services. For certain goods, such as tobacco products and alcoholic beverages, duty exemption is granted within prescribed quantities.

F. Useful addresses
For EU/ EEA nationals and their family members, Romanian Immigration Office is located in 29 Nicolae Iorga Street, Bucharest, District 1.
For non-EU citizens, Direction for Immigration located is in 3-5 Eforie Street, Bucharest, District 5.

You can get the exchange rate of all major currencies on the Romanian Central Bank’s website (BNR). The new rate is published every day after noon. The website below is also available in English.

Romanian Central Bank
Web: www.bnro.ro
Governor: Mugur Isarescu

Tips for newcomers searching for employment
By Delia Burnham

Finding the right type of opportunity as a foreigner in Romania, once here on the ground, can be tricky, frustrating and hard. We know, some of the authors of this book have been there. But it is possible. As a general statement, very many things concerning business in Romania (and this includes finding a job) depend on personal relations. You know somebody, this person recommends you, and then all of the sudden possibilities emerge.

Below are the 5 most useful areas in which to focus your search:

The Formal Way:
1. Use Recruitment & Executive Search Companies – identify the managers of 5 recruitment companies and send them your resume, always follow up by phone to check they received your e-mail.

2. Make a list of target employers – select 10 potential employers and send the HR Managers your resume, then follow up by phone

The more informal approach:
3. Business networking

• make virtual connections using the following websites:

- www.internations.org (website for expatriates and not only to meet up once a month for a drink in Bucharest and get to know other newcomers)
- www.linkedin.com
- www.xing.com (similar to linked in, and big in Germany and Austria, join the “Bucharest” and “Business in Romania” groups)
- www.meetup.com (Besides your groups of interest, make sure you join the “Expats and Repats” -Group in Bucharest

• Go to meetings organized by the following:

- Chambers of Commerce (see Chambers of Commerce section in this chapter)
- Embassy events (check out the Embassy Link in the VISA services section)
- Your National community

4. Monitor Job Boards for suitable advertisements:
- www.bestjobs.ro
- www.e-jobs.ro
- www.monster.com

5. Socialising – let all your friends know you are looking for an opportunity- if you are very new and do not have that many friends yet, try to meet new people at the social events mentioned above!

Please use this link for further information: www.job-search-steps.com

Romanian Trade Registry Office (ONRC)
Address: 74 Unirii Blvd., Bl J3b, Sector 3
Phone: +40 213 16 08 04
Web: www.onrc.ro
Any new firm opened in Romania needs to be registered at the Trade Registry.

National Fiscal Administration Agency (ANAF)
Address: 17, Apolodor Str., Sector 5
Phone: +40 213 19 98 57
Web: www.anaf.ro
ANAF is the fiscal authority in Romania.

The Official Monitor
Address: 65, Parcului Str., Sector 1
Phone: +40 213 18 51 28
Web: www.monitoruloficial.ro
The Official Monitor is the place where all public documents are published.

Even a couple of years ago, private banking for foreigners was challenging in terms of actually opening an account, and also in terms of obtaining a decent level of service comparable to Western Europe, nowadays the process is much easier, and there is a wide range of banks which offer foreigners current accounts, savings accounts, and even credit cards. It is important, however, before opening any kind of account, to register at the Foreigners’ Registration Office (APS – Autoritatea pentru straini). To open a bank account you will need your personal identification number (Cod Numeric Personal – CNP) that is issued by the APS. If you need assistance in opening a bank account contact the City Compass Team! We have made our following selection based on the network of ATMs, availability of English language services, online banking and the branch network coverage. Chip and pin cards are normally accepted at all cash machines, apart from Volksbank branch machines.

Romanian banking fees are fairly high compared to many other countries, Western Europe and the US in particular, so please take this into consideration if you intend making frequent international transfers. You may prefer to investigate the option of using www.moneybookers.com which many international readers have suggested to be a good option.

If you would like to obtain a Romanian credit card then you will need to apply for a card limit, submitting an income statement (Adeverinta de venit) certified by a public notary.

Unicredit Tiriac Bank

Web: www.unicredit-tiriac.ro (Unicredit Tiriac Bank)
www.unicredit.eu (Unicredit Group)
The Unicredit Tiriac Bank in Romania is based on the network of the former Romanian bank Banca Tiriac, which was founded by the Romanian business man Ion Tiriac. It offers a good network of ATMs and branch offices in Bucharest. In most of the branch offices, you can make currency transactions.
Bank accounts can be administered in RON, EUR, GBP and USD. The online banking interface is comprehensive and user friendly and offers the possibility for foreign currency transactions online if you hold a bank account in EUR, GBP or USD.
In Central and Eastern Europe Unicredit is a key player in the private banking market. It holds branch offices in most of the CEE countries. Unicredit clients benefit from reduced commission fees on ATM transactions at Unicredit ATMs worldwide.

ING Bank

web: www.ing.ro
The Dutch ING Bank operates a network of franchise offices all over Romania. These offices offer account administration services with self-service terminals, ATMs and face-to-face services which do not include cash transactions.
Non-ATM cash transactions are only available at the ING headquarters on Sos. Kiseleff 11-13, Sector 1. Accounts are available in RON, EUR, GBP and USD. The ING Romania homepage is available in
English and Romanian.

BRD Groupe Societe Generale

Web: www.brd.ro/en/the-bank (Expat Section)
www.brd.ro/en/foreign-special/expatriates-in-romania/ (Expat Section)
www.brd.ro/en/the-bank/brd-branches/ (Branch Locater Tool)
www.brd.ro/en/the-bank/brd-atms/ (ATM Finder)
The BRD (Romanian Development Bank) is a formerly Romanian bank, which is now part of the French Societé Générale Network. Like Unicredit, BRD has a well-developed network of ATMs and branch offices. BRD also specializes in expat clients, and has a special service section dedicated to their needs. Online banking services are available in RON as well as in EUR and USD.

Intesa San Paolo Bank

Address: 163, Calea Grivitei , Sector 1, Bucharest
Phone: +40 21 310 05 12
Web: www.intesasanpaolobank.ro
Intesa San Paolo has been growing rapidly over the past year and offer very competitive bankingfees compared to other banks (especially international transfers, and account management fees for debit and credit cards).

BCR Banca Comerciala Romana

Web: www.bcr.ro 
The Romanian Commercial Bank (BCR) is another important key player on the Romanian banking market. In 2007, it was integrated into the Austrian Erste Group and has gone through a process of rebranding. Currently the bank is undergoing an organizational change process to transform it into a modern, customer service oriented bank. However, due to its current personnel structure, it may be harder to find English-speaking employees there. Nonetheless, the bank’s Hotline is available in English. BCR offers online banking for RON and foreign currencies (EUR and USD), and has a very good network of branch offices and ATMs.

CEC Bank

Web: www.cec.ro
CEC Bank (Casa de Economii si Consemnatiuni) was the first bank in Romania to offer private banking services. It was inaugurated in 1864 by Alexandru Ioan Cuza, and is a state-owned bank. Being the oldest bank in Romania, CEC Bank has developed a good network of branch offices and ATMs all over the country. Considered to be a conservative bank and lagging behind modern developments on the banking market, in 2007 CEC initiated a rebranding process to show a modern face to its customers. The website is meanwhile available in English as well. It still may be difficult for you to find a clerk able to handle your request in English.

Alpha Bank

Web: www.alphabank.ro
The Greek Alpha Bank has been extending is network in Romania for the last several years and is now present in all major cities. The bank offers both commercial and private services. The ATM and branch office network in Bucharest covers all major points of interests in the six sectors of the city.
Current accounts are available in RON, EUR and USD and can be administered through online banking. The Alpha Bank Homepage is available in Romanian and English. Forms for account application are available online.

Millennium Bank

Web: www.millenniumbank.ro
The Portuguese bank launched its operations in Romania in 2007. The Bank has a progressive growth strategy and has extended its network to six counties in Romania already. In Bucharest, Millennium Bank has ATMs and branch offices at all major points of interest. Accounts are available in RON, EUR, USD, CHF, GBP and foreign accounts can be administered via online banking. The webpage and services are available in English.

Emporiki Bank

Web: www.emporiki.ro
The Greek Emporiki Bank operates a very modest network of ATMs and branch offices; they currently number 17 for the entire country. Accounts are available in RON, EUR and USD. The bank offers online banking services, but unfortunately, it is only partly translated into English, and only supports Microsoft Internet Explorer.