🇷🇴map Romania [Economy]

Economic Overview

Romania is an EU member with an economy that sits in the “emerging” camp but feels increasingly integrated with Western Europe. Growth has been steady over the past decade, driven by services, manufacturing, and a rising tech sector. Like much of Europe, Romania faced high inflation after 2022, but price pressures have eased, and domestic demand remains resilient. On purchasing power, the country has climbed into the upper tier of Central and Eastern Europe, though regional disparities still show up between big cities and rural areas.

For travelers and expats, the takeaway is simple: Romania offers European infrastructure and market access at lower costs than in the west of the continent. EU rules shape most standards and consumer protections, and the country’s tie-ins with European supply chains help keep the economy outward-looking. The leu (RON) is not pegged to the euro, but it’s fairly stable; most higher-value transactions (rent, cars, longer stays) are often quoted in euro alongside the leu for convenience.

Major Industries

Romania’s industrial backbone is stronger than many expect. Automotive and auto parts are big employers—think Dacia (Renault Group) and Ford Otosan—supported by electronics, white goods, and aerospace components. The services economy has surged, led by IT and business process outsourcing in hubs like Bucharest, Cluj-Napoca, Timișoara, and Iași. Tourism is a steady contributor too, with Transylvania’s castles, mountain hikes in the Carpathians, and Black Sea summers giving you plenty of weekend options.

Agriculture still matters—grains, sunflower oil, and wine—but it’s increasingly modernized and export-oriented. Energy is a strategic play: strong hydro, solid onshore wind (especially in Dobrogea), rapidly growing solar, plus natural gas resources onshore and in the Black Sea under development. This energy mix makes Romania one of the more balanced power producers in the region and a potential net contributor to regional energy security.

Employment Landscape

If you’re job-hunting locally, the best prospects tend to be in IT, engineering, automotive, finance, shared services, and logistics. Large multinationals run operations in the major cities, and English is widely used in white-collar roles. Unemployment is generally moderate, but employers report skill shortages in software development, automation, and specialized engineering. German, French, and Italian language skills are a plus in many service centers.

Workplace culture is a hybrid of EU formality and entrepreneurial pragmatism. Expect clear hierarchies in older firms and a more flexible, project-focused vibe in tech and startups. Salaries are lower than in Western Europe but competitive for the region; senior specialists can command strong packages, especially in IT. Commuting and hybrid work are common, with high home-internet speeds making remote setups smooth.

Business Environment

Starting a business is straightforward by regional standards, though paperwork can still be fussy and timelines vary by city. EU-aligned regulations mean familiar standards for accounting, health and safety, and data protection. The flat corporate income tax is 16%, and VAT is typically 19% with reduced rates for certain goods and services. Romania has a microenterprise regime for small companies that can be beneficial under specific turnover and activity rules—worth reviewing with a local accountant.

Banking, invoicing, and compliance are all digital-friendly, and English-speaking service providers are easy to find in major hubs. Do keep an eye on frequent tweaks to fiscal rules; Romania has made periodic tax updates to address budget deficits. A good local accountant or legal advisor is worth their fee, especially if you hire staff or bill clients in multiple currencies.

Startup Ecosystem

Romania’s startup scene is confident and growing. Bucharest and Cluj are the headliners, with Timișoara and Iași not far behind. You’ll find a dense network of co-working spaces, meetups, and accelerators, plus active university communities feeding talent into software, AI, cybersecurity, and fintech. Funding is improving: a mix of regional VCs, angel groups, and EU-backed programs support early-stage rounds, while later-stage capital increasingly looks at Romanian deal flow.

Success stories in tech outsourcing have matured into product-driven companies, and more founders now think global from day one. The ecosystem benefits from strong math and engineering education, good English proficiency, and competitive developer costs. If you’re bringing a startup from abroad, expect landlord flexibility on short-term office setups, and a welcoming community eager to collaborate.

Investment Opportunities

Foreign investors generally find Romania open and cost-effective, with the EU market as the backdrop. Industrial real estate, logistics centers, and nearshoring sites along the western corridor (toward Hungary) are in demand. Residential yields in Bucharest and regional cities often outpace Western Europe, though location and build quality matter. The Bucharest Stock Exchange is recognized as an emerging market, with growing liquidity and a pipeline of local listings.

There are incentives for manufacturing, R&D, and large job-creating projects, plus EU funds that co-finance infrastructure and innovation. Foreigners can own property; land rules are easiest for EU citizens, while non-EU investors typically use local entities. As always, do proper due diligence: construction permitting can be slow, and utility hookups vary by city and zone.

Trade and Global Connections

Romania’s biggest trading partners are in the EU—especially Germany, Italy, France, and Hungary—mirroring its role in European supply chains. Exports include vehicles and parts, electrical equipment, machinery, metals, and IT services; imports cover machinery, chemicals, fuels, and consumer goods. EU membership anchors trade policy and standards, while improving highways and rail links keep goods moving toward Central Europe and the Black Sea.

The currency is the leu (RON). You’ll pay everyday expenses in RON, but many leases and larger purchases are quoted in euro. Card payments are ubiquitous, and multi-currency accounts are easy to set up. For freelancers billing abroad, receiving EUR or USD is routine, with competitive fintech options for transfers.

Natural Resources

Romania has a mixed resource profile: natural gas onshore and offshore, substantial hydropower, solid wind corridors, and expanding solar capacity. Black Sea gas projects aim to boost domestic supply and reduce imports over the next few years. The grid is increasingly connected to European neighbors, which helps balance renewables and supports regional energy security.

Agriculture is a reliable export earner—grains, oilseeds, and processed foods—with modern farms alongside smallholders. Environmental concerns focus on forest management, urban air quality, and industrial legacies; EU standards push improvements and green investment. For investors and operators, energy efficiency upgrades and rooftop solar are common-sense plays with attractive paybacks.

Financial Infrastructure

Banking is stable and competitive, with major international and local banks offering English-language services. Digital payments are the norm, contactless is everywhere, and online banking is robust. Credit for businesses is accessible if you have clean financials; startups often lean on grants, angels, and revenue-based finance before bank loans. Fintech platforms make cross-border payments simple, and foreign currency accounts (EUR, USD) are routine.

Consumer protections follow EU norms, and regulators have tightened oversight in recent years. For companies, e-invoicing and digital tax reporting are rolling out in stages, so keep your accountant close. For individuals, opening accounts is straightforward with proper ID, and proof of address is typically required.

Economic Opportunities for Expats

Romania is one of Europe’s easiest places to set up as a remote worker. Internet speeds are excellent, co-working spaces abound, and English is widely spoken in cities. A digital nomad visa exists for non-EU citizens who meet income and paperwork thresholds, while EU citizens enjoy free movement. Cost of living is lower than in Western Europe; rents and dining are especially favorable outside Bucharest, letting your foreign income go further.

Tax is where planning pays off. Personal income tax is a flat 10%, but social contributions can be significant depending on how you structure your work. Freelancers and small companies have options under local regimes, and double-tax treaties may reduce friction if you’re paid from abroad. If you expect to stay long-term, speak with a local tax advisor about residence status, social insurance, and how to avoid creating a taxable “permanent establishment” for your foreign employer.

Franz
Franz is a German technical writer and business consultant from Munich, with over 15 years of experience in international corporate relocations and German business culture. Having worked for major German multinational corporations including BMW and Siemens, Franz has extensive experience facilitating the relocation of international talent to Germany and helping German professionals navigate complex assignments abroad.