Romania

General Information

Capital: Bucharest

Official Language: Romanian 

Religion: No official religion, ~92% Christian (81% Orthodox Christians)

Government: Unitary semi-presidential republic

  • ‘Semi-presidential’ means executive functions are held by both the president and other governing bodies.

Legislature: Parliament; Upper House: Senate, Lower House: Chamber of Deputies

Area: 238,397 km2

Location: Southeastern Europe, bordering the Black Sea

Population: 19,038,098

Climate: Temperate and continental; With four distinct seasons

Geography: Roughly equal distribution of mountains, hills, and plains

  • The Carpathian Mountains take up a majority of the center of Romania.
  • They have one of the largest areas of undisturbed forest in Europe, covering nearly 27% of the country.

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Economics: 

  • GDP: $731.466 billion
  • Currency: Romanian leu (RON)
  • They are expected to adopt the Euro as official currency in 2024, after joining the EU in 2007.
  • The largest Romanian companies are primarily in the auto/gas industry.
  • Their main exports are cars, software, clothing/textiles, machinery, electrical & military equipment, raw materials, chemicals, pharmaceuticals, and agricultural products. 
  • Romania’s largest trading partners are Germany and Italy.
  • Government intervention in the Romanian economy is less than in other EU economies, due to privatizations and reforms that occurred in the late 90s and early 2000s.

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Doing Business:

  • According to a 2019 World Bank report, Romania ranks 52nd of 190 economies for ‘ease of doing business’.
  • While the language of business is usually Romanian, many people also speak other major European languages like English, French, and German.
  • Upon meeting, it is customary to shake hands with business partners. Not doing so would be seen as an insult. 
  • Romanian business culture is both formal and hierarchical. Meetings usually follow a strict protocol. Expats should wait to be seated and only take off their jackets after the most senior person in the room does. 
  • Business dress code varies from formal to business casual depending on the setting, with conservative dress encouraged in formal settings. 
  • Gift-giving is polite and a fairly common practice among business partners. If you are invited to a colleague’s home, this is a special honor and a gift of wine or chocolates is customary. 
  • As of 2005, Romania has a flat tax of 16% for both personal income and corporate profits. This is one of the lowest tax rates in the EU.
  • In the past, Romania has attempted to join the Schengen Area. As of August 2019, their acceptance by the European Council into the Schengen Area has been complicated by legal matters. 

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History & Culture: 

  • The name ‘Romania’ derives from the Latin romanus meaning ‘of Rome’ or ‘Roman’.
  • Romania is the largest country in Southeastern Europe.
  • Peștera cu Oase (‘Cave with Bones’) in Eastern Romania, is the site of the discovery of the remains of the oldest known Homo sapiens in Europe - they are from around 40,000 years ago!
  • Bran Castle is one of the most famous attractions in Romania, as it is believed to be Dracula’s castle.
  • Romania and Moldova share the same language and a common history. There was a movement in the early 90’s for unification of the two countries. And later, a movement to preserve Moldovan independence. 
  • Romania joined NATO in 2004 and became a full member of the European Union in January 2007.
  • The Romanian diaspora is the 5th highest emigrant population in the world, with an estimation of over 3.6 million people as of 2016.

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Sources:

Romania - Wikipedia 

Romania - Britannica

Doing Business in Romania - Expat Arrivals

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December 1, 2022