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Emigrating to Romania: Your Stress-Free New Beginning in Eastern Europe!
Do you dream of a life with lower taxes and a high quality of life? Romania could be your destination! Discover the opportunities this emerging country offers. Need support with planning and executing your move abroad? Contact us for a personal consultation.
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Do you dream of a life with lower taxes and a high quality of life? Romania could be your destination! Discover the opportunities this emerging country offers. Need support with planning and executing your move abroad? Contact us for a personal consultation.
Do you dream of a life with lower taxes and a high quality of life? Romania could be your destination! Discover the opportunities this emerging country offers. Need support with planning and executing your move abroad? Contact us for a personal consultation.
Do you dream of a life with lower taxes and a high quality of life? Romania could be your destination! Discover the opportunities this emerging country offers. Need support with planning and executing your move abroad? Contact us for a personal consultation.
Learn everything you need to know about moving to Romania: from tax benefits and property prices to tips on integration and living with children. Start your new life well-prepared now!
Romania is becoming increasingly popular as a destination for expatriates. But what makes the country so attractive? Primarily, the economic benefits and the affordable cost of living play a crucial role. At GoMovin, we understand that moving abroad is a significant decision, and we want to provide you with all the essential information for a successful new beginning in Romania through this article.
Economic Advantages and Cost of Living
Romania offers a range of economic incentives that are particularly appealing to entrepreneurs and freelancers. One of the biggest advantages is the so-called “micro-enterprise tax”, which allows companies with a turnover of up to 500,000 EUR to pay only 1-3% tax on their turnover. This is extremely attractive compared to the usual corporate tax rates in many other EU countries. The country's growing economy, especially in sectors like IT, technology, tourism, and real estate, also offers numerous opportunities.
Another advantage is the low cost of living. Compared to Western Europe, the prices for housing, food, and services are significantly lower. For example, the rental prices for a three-room flat in many regions of Romania range from 300 to 600 EUR. Monthly food costs are also estimated at 300 to 500 EUR. These low costs enable you to improve your standard of living or save more money. You can find more information about the cost of living on Dachser-Kolb.
Scenic Diversity and Cultural Richness
Besides the economic benefits, Romania also has a lot to offer in terms of scenery and culture. The country is characterised by its varied landscape, ranging from the majestic Carpathians to the picturesque Black Sea. This diversity provides numerous opportunities for outdoor activities and relaxation. Additionally, Romania is known for its hospitality and cultural richness. Integration is made easier by the large number of German-speaking residents, which facilitates settling into a new life. For further insights into the culture and way of life, a visit to Perspektive Ausland is recommended.
Micro-enterprise tax: Pay up to 3% tax on turnover
The micro-enterprise tax is a key incentive for entrepreneurs looking to relocate to Romania. It offers significant tax advantages that can greatly reduce financial burdens. However, certain conditions must be met to benefit from this type of tax. We at GoMovin are happy to help you check all the requirements and develop the optimal tax strategy for your business.
Benefits and Conditions
The micro-enterprise tax offers staggered tax rates based on turnover. Companies with a turnover of under €60,000 pay only 1% tax on turnover, with certain NACE codes (e.g., IT, hotel, restaurant, catering, legal, medical, and dental practices) excluded. For companies with a turnover of under €500,000, the tax is 3% on turnover. An important condition is that the company must employ at least one full-time employee at minimum wage. Additionally, a maximum of three companies can benefit from this tax regulation if the shareholder holds more than 25% stake in each company. Consulting and management revenues are limited to 20% of total revenue. These regulations are crucial for planning and structuring your business in Romania. More details on the micro-enterprise tax can be found at Wohnsitz Ausland.
Dividend Taxation and Reinvestment
Dividend taxation also plays a role in financial planning. The dividend tax is currently 8% (as of 1 January 2024). However, there is a way to avoid this tax: through the reinvestment of dividends. If you reinvest your company's profits back into the business, the dividend tax is waived. This can be an attractive option to promote your company's growth while saving on taxes. It is advisable to consult a tax advisor to develop the optimal strategy for your individual situation.
Company Headquarters and Invoicing
The choice of company headquarters and the structuring of invoicing can also be important aspects. The perception of a Romanian company headquarters may play a role in some business areas. Some experts recommend using a shell company in Ireland or the UK for invoicing, while directing profits to Romania. This can help to build trust with business partners and alleviate potential concerns. However, it is important to carefully examine all legal and tax aspects before implementing such a structure. We at GoMovin are happy to assist you with our expertise.
Take advantage of affordable property prices and surprisingly good digitalisation
Life in Romania offers many advantages, but it is also important to consider the everyday aspects and infrastructure. At GoMovin, we want to provide you with a comprehensive overview to help you prepare for your new life as effectively as possible. From housing options to the healthcare system, and digital infrastructure – we've compiled all the key information for you.
Housing and Real Estate
One of the biggest advantages of living in Romania is the affordable property prices. Compared to Western Europe, the costs of buying or renting a property are significantly lower. This allows you to invest in a larger or better-located property without breaking your budget. However, it is important to note that prices in major cities are rising, so it is advisable to familiarize yourself with the various regions and their price levels early on. A good starting point for finding property is Perspektive Ausland, where you can find valuable tips and experiences.
Healthcare
The Romanian healthcare system faces some challenges. The public healthcare system offers basic services, but the standards are often lower than in Western Europe. Long waiting times and a limited selection of specialists are not uncommon. For this reason, it is recommended to take out an additional private health insurance. Private options offer higher standards and better care. With private health insurance, you can ensure that you receive the best possible treatment in the event of illness. It is advisable to research different insurance options before moving abroad and take out a policy that meets your needs.
Infrastructure and Digitalisation
The infrastructure in Romania is varied. While the infrastructure outside the cities can be lacking, there are significant improvements in urban centres. Particularly surprising is the well-developed digital infrastructure, which is also available in smaller towns. This is a major advantage for entrepreneurs and freelancers who rely on a reliable internet connection. The good digital infrastructure enables you to conduct your business seamlessly from Romania and stay connected with the world. However, it is advisable to check the availability and quality of the internet connection before choosing your place of residence.
Uncomplicated immigration for EU citizens: Registration within 90 days
The legal frameworks and formalities are an important aspect when moving to Romania. At GoMovin, we aim to provide you with an overview of the key regulations, allowing you to stay informed and initiate all necessary steps in a timely manner. From residence permits to work permits, we've gathered all relevant information for you.
Residence Permit and Registration
For EU citizens, immigrating to Romania is relatively straightforward. You can initially register within 90 days. For a longer stay, a residence permit is required. You'll need to present certain documents, which must be translated and certified. These usually include a valid passport or ID card, proof of sufficient financial means, and health insurance. It is advisable to find out about specific requirements early and prepare all necessary documents to avoid delays. Further information on registration and residence permits can be found on Wohnsitz Ausland.
Work Permit
If you wish to work in Romania, you generally need a work permit. This requires a contract of employment with a Romanian employer. The employer must apply for the work permit on your behalf and prove that no suitable Romanian candidates are available for the position. It is therefore crucial to secure a job before moving and ensure your employer is willing to support you in obtaining the work permit. Alternatively, you can operate as a self-employed person, provided you meet certain conditions to receive a business license.
Homeschooling restricted: Child benefit dependent on age and tied to residence
If you are emigrating to Romania with children, there are some special aspects to consider. At GoMovin, we aim to provide you with an overview of the most important regulations and offerings for families, ensuring you and your children can settle into your new home quickly. From education to child benefits – we have compiled all the relevant information for you.
Education and Homeschooling
Education is an important factor when deciding to emigrate with children. In Romania, there are both public and private schools. The public schools are generally free of charge, but lessons can be conducted in Romanian. Private schools often offer bilingual education or follow an international curriculum. Homeschooling in Romania is limited to children with disabilities or health issues, requiring supervision by accredited teachers. Foreign curricula are permissible under similar supervision. It's advisable to investigate the various educational offerings early on and choose a school that suits your children's needs.
Child Benefits
Child benefits are also a significant aspect for families. The entitlement to child benefits in Romania is age-dependent and linked to residency. Foreign nationals may qualify under certain tax conditions. It's recommended to familiarise yourself with the exact regulations before emigrating and check if you qualify for child benefits. The amount of child benefit can vary depending on the child's age. More information about child benefits can be found at Wohnsitz Ausland.
German pension is taxed in Germany: Process the tax office questionnaire
Even from a German perspective, there are some tax aspects to consider if you are emigrating to Romania. We at GoMovin would like to provide you with an overview of the most important regulations to help you avoid any unpleasant surprises. From the taxation of German pensions to the questionnaire from the German tax office – we have compiled all relevant information for you.
Taxation of German Pensions
The taxation of German pensions is governed by the Double Taxation Agreement (DTA) between Germany and Romania. Generally, German pensions are taxed in Germany. However, it is important to carefully analyse specific types of pensions as there may be exceptions. It is advisable to consult a tax advisor to ensure that you meet all tax obligations and do not pay unnecessary taxes. Careful planning can help optimise your financial situation.
Questionnaire from the German Tax Office
After emigration, you will usually receive a detailed questionnaire from the German tax office. It is important to handle this questionnaire carefully and answer all questions honestly and completely. The information provided in the questionnaire is used by the tax office to assess your tax situation and ensure you meet all tax obligations. Incomplete or incorrect responses to the questionnaire can lead to issues with the tax office. Therefore, it is advisable to seek support from a tax advisor when completing the questionnaire.
Passport Revocation Due to Tax Debts
It is important to note that passport revocation is possible due to tax debts. If you have tax debts in Germany, the tax office may revoke your passport to ensure you fulfil your tax obligations. It is therefore advisable to settle all tax debts before emigration or to arrange a settlement with the tax office. Passport revocation can significantly restrict your freedom of travel and complicate your fresh start in Romania.
Language skills are crucial: Demonstrating openness to cultural adaptation
Integration into Romanian society is a crucial factor for a successful move to Romania. At GoMovin, we would like to offer you some tips and advice on how to quickly settle into your new home and make connections. From language to culture – we have gathered all the relevant information for you.
Language and Culture
The Romanian language plays a key role in integration. With proficiency in the language, you can communicate more easily with locals, make friendships, and participate in social life. Therefore, it is advisable to attend a language course before or after moving or to acquire the language in other ways. Cultural adaptation also requires time and openness. It is important to familiarise yourself with Romanian traditions and customs and to respect them. If you are interested in the culture and ready to adapt, you will quickly feel at home in Romania. You can find more information on Romanian culture and language at Perspektive Ausland.
Community and Safety
Romania is known for its strong family values and distinct sense of community. This contributes to a safe and friendly environment. By engaging with the community and making connections, you will quickly find friends and feel at home in your new surroundings. There are numerous ways to get involved in the community, such as in clubs, church groups, or neighbourhood initiatives. Participating in local events and festivals can also help you make contacts and learn about Romanian culture.
Plan a longer trial stay: Develop realistic expectations
Good preparation and planning are crucial for successful emigration to Romania. At GoMovin, we'd like to offer some tips and recommendations on how you can best prepare for your new life. From planning to implementation – we've gathered all the relevant information for you.
Trial Stay
It's advisable to consider a longer stay in Romania before making a final decision. This gives you the opportunity to get to know the country and its people, test the living conditions, and make connections. A trial stay can help you determine if Romania is truly the right country for you and if you feel comfortable there. It's recommended to plan the trial stay carefully and research the various regions and cities in advance. Additionally, finding accommodation and organizing travel should also be planned ahead. Further tips and experiences on emigrating to Romania can be found in the emigrants' forum.
Realistic Expectations
It's important to develop realistic expectations to avoid disappointments. Romania is a different country from Germany, and there are many differences in terms of culture, lifestyle, and infrastructure. It's crucial to adapt to these differences and be willing to adjust. The language can also be a challenge, especially if you don't speak Romanian. It's advisable to learn about the various aspects of life in Romania before emigrating and to set realistic goals. By moving to Romania with realistic expectations, you will settle in more quickly and enjoy your new life.
We at GoMovin understand that the decision to emigrate to Romania requires careful consideration. With our expertise in relocation, we're happy to assist you in making your move as stress-free and efficient as possible. From initial consultation to arrival at your new home, we are here to support you. Contact us today for a no-obligation consultation and let’s plan your new start in Romania together! Visit our contact page.
Further useful links
Das Statistische Bundesamt (Destatis) provides detailed information about wages and taxes in Romania.
Germany Trade & Invest (GTAI) provides information on current wages and salaries in Romania.
The Europäische Kommission offers reports and analyses on Romania's economic development.
The Bundesregierung provides information on economic cooperation with Eastern Europe, including Romania.
Das Bundesministerium für Wirtschaft und Klimaschutz (BMWK) provides information about foreign investments and economic conditions.
The KfW Entwicklungsbank publishes reports on economic developments in Romania.
Das Statistische Bundesamt offers data and facts on foreign investments.
FAQ
What tax advantages does Romania offer for small businesses?
Romania offers the so-called "microenterprise tax", which allows businesses with a turnover of up to 500,000 EUR to pay only 1-3% tax on their turnover. This is particularly attractive compared to higher corporate tax rates in other EU countries.
What are the living costs in Romania compared to Germany?
The living costs in Romania are significantly lower than in Germany. The rent for a 3-bedroom apartment often ranges between 300 and 600 EUR, and the monthly food expenses are estimated to be 300 to 500 EUR.
Do I need a work permit as an EU citizen to work in Romania?
No, as an EU citizen, you do not need a work permit to work in Romania. However, you must register within 90 days and apply for a residence permit for a longer stay.
Is homeschooling allowed in Romania?
Homeschooling in Romania is restricted to children with disabilities or health issues who require tutoring by accredited teachers. Foreign curricula are allowed under similar supervision.
How is my German pension taxed in Romania?
Generally, German pensions are taxed in Germany, based on the double taxation agreement (DBA) between Germany and Romania. It is advisable to carefully analyze specific types of pensions.
Which industries offer the best opportunities for entrepreneurs in Romania?
Romania's growing economy offers numerous opportunities for entrepreneurs, particularly in industries such as IT, technology, tourism, and real estate.
How important are language skills for integration in Romania?
The Romanian language plays a crucial role in integration. Language skills facilitate communication, making friends, and participating in social life.
What should I consider when choosing a business location in Romania?
The perception of a Romanian business location can play a role in certain business sectors. Some experts recommend using a letterbox company in Ireland or the United Kingdom for invoicing, while channeling the profits to Romania.
