Thursday, August 4, 2005
Romania’s level of foreign direct investment rose by 19% in the first six months (January-July) of 2005 when compared to the same period of 2004, according to the Romanian Agency for Foreign Investment (ARIS). The country recorded US$750 million of foreign investment in this period, and 56 total investment projects, in comparison to 40 projects between January and July 2004. The majority of the investments occurred in the Bucharest–Ilfov region, which includes the Romanian capital.
The rise in foreign investment is mainly attributed due to a more liberal taxation policy introduced by the Romanian government on January 1, 2005, which centres around a 16% flat tax on personal income and corporate profit. Additionally, the country’s expected membership of the European Union in 2007 and its relatively stable political climate also led to an increase in foreign investment in 2005.