Romania Approves Tax Breaks For Foreign Investors

The Romanian Government has approved a new law to introduce tax relief for foreign venture capitalists.

The law aims to encourage start-up businesses and was passed by the Chamber of Deputies on April 29, 2015. It applies where a foreign individual, who was previously unconnected with the company in question, invests any amount between EUR3,000 (USD3,375) and EUR200,000 to acquire an equity share of no more than 49 percent.

Investors will be exempt from tax on dividends for three years. Proceeds from the sale of an equity share during this three-year period will also be exempt.