Regional Factbooks

Free Trade Zone Investment
Following the removal of obstacles to navigation in the Serbian stretch of the Danube, there are new opportunities for investment in warehousing, manufacturing, processing and product packaging in Romania's free trade zones.

As a result of political instability in Serbia over the last decade, the Rhine-Maine/Danube Canal has not fully realised its strategic role in connecting East European, Turkish and Ukrainian markets with the European community, particularly to North Sea ports.

At the Black sea end of this navigation system, Constanta Harbor is strategically located to become the key transit port for the region fulfilling a similar role to Rotterdam at the other end of the navigation channel.

Foreign and Romanian registered companies alike are permitted to operate in the Free Trade Zones of Romania.

Key benefits

• exemption of customs taxes and taxes on the goods entering or
  leaving the free-trade zone except in the country of final destination;
• exemption from income taxes for staff salaries;
• guarantee that the investment made in the free trade zone will not be
  nationalized, expropriated or confiscated;
• free transfer of the remaining capital and of the profit upon the cessation
  of the investment;
• the lease term of the land and structures is up to 50 years and is determined
  by the value of the investment and the specific nature of activity;
• exemption from taxes of Romanian materials and accessories that enter
  the free trade zones and are used to manufacture goods for export purposes.
  The same exemption is offered for Romanian goods used for construction,
  repair or maintenance within the zones.

Free Trade Zones/Free Ports in Romania

Free trade zones in Romania are regulated by Law No. 84/1992. Customs control is applicable only at the borders of free trade zones, which have to be strictly delimited. Goods and other merchandise are admitted into free trade zones without restrictions as to country of origin or destination, provided that the import of such goods into Romania is not prohibited. Free trade zones are established by Government decision, at the proposal of interested ministries and local public administrations. They are managed by a Board of Directors, under the supervision of the Free Trade Zones Agency within the Ministry of Transport.

Activities to be carried out in free trade zones (storing, weighing, handling, packaging, processing, banking and financial operations, etc.) are authorized by a license issued by the Board of Directors of the respective zone. The license is issued following a concession or rental contract concluded by the Board of Directors with the client.

According to the provisions of Law No. 84/1992, land and buildings can be rented or concessioned to Romanian or foreign legal or natural persons for a maximum of 50 years.

Foreign-owned firms have the same investment opportunities in free trade zones as Romanian entities. In case of liquidation of assets, foreign legal or natural persons can transfer abroad the capital and profit, after due payment of their obligations to the Romanian state and to their business partners.

Currently, there are six free trade zones in Romania:

Free Trade Zones Compared

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Contact - Richard Prior - +40 722 304 773