Investment incentives in Romania and rights of foreign investors

The legal framework which regulates Romanian state support is Government Emergency Ordinance (GEO) No. 85/2008 concerning stimulation of investments. The main purpose of the law is to ensure the sustainable development of Romania through the promotion of investments. The law establishes, among other things, the rules under which investors, residents and non-residents can benefit from these facilities. The specific conditions of state support depend on several criteria such as the sector of activity in which the investment is made, the level of potential improvement of an undeveloped sector, and the level of stimulation of the research and development (R&D) sector. In order for these incentives to be granted the investments and the investors have to fulfil certain conditions expressly mentioned by the law. First, the incentives are conferred to those investments made through the acquisition of tangible and intangible assets.