Attractions and challenges of the Romanian market

In the last few years, Romania has experienced significant growth of its gross domestic product (GDP) and also an important increase in foreign direct investments (FDI), which guarantees sustainable growth of the Romanian economy. The main assets of the Romanian market are a highly skilled workforce with low labour costs and reduced language barriers, abundant natural resources, access to the Black Sea and Asia, as well as 19 million consumers which help make it the 7th largest EU country by population. On January 1, 2016 the new Tax Code came into force and brought fiscal loosening which will improve the investment climate. Consequently, VAT was reduced to 20% and will be reduced to 19% in 2017. The dividend tax was reduced from 16% to 5% and the profit tax will be reduced from 16% to 14% in 2019, making Romania a state with some of the lowest taxes in the EU.