You would go where you are treated the best. Romania has the lowest tax rate in Europe (1% corporate tax).

Once you decide to move your business or to set up a new one in Romania, you may consider getting your fiscal residency in Romania due to very low taxation.

From the point of view of tax residence (payment of all your taxes for profits made globally in Romania), the main elements that are taken into account to establish the tax residence in Romania as an individual and also to obtain a tax residence certificate in this regards, are the following:

a) domicile in Romania;

b) permanent residence in Romania of the individual, which may be owned or rented or remain at the disposal of the individual and/or his/her family at any time;

c) center of vital interests located in Romania;

d) the individual is present in Romania for a period or periods exceeding in the aggregate 183 days in any period of 12 consecutive months ending in the calendar year concerned.

There may be other elements that are considered in establishing residence in Romania or the foreign state, but only in conjunction with the above:

• vehicle registered in Romania/foreign state;
• driving license issued by the competent authority in Romania/foreign state;
• passport issued by the competent authority in Romania/foreign state;
• the person is insured with the social insurance system of Romania/foreign state for the whole period of stay abroad/Romania;

You can obtain a residence permit that certifies your right to live in Romania for by obtaining a residence permit in Romania. For this, you must have a registered company in which you are appointed as a director/shareholder or in which you are employed.

However, the Convention for avoiding double taxation between Romania and the country of your current tax residency must be checked to determine which state has the right to consider you as tax resident. This is referred to as the “tie breaker rule” and determines the tax residency based on the following criteria applied when you might be considered tax resident in both countries:

• the person is resident in the country where he has a permanent home at his disposal. If he has permanent homes in both states, he will be tax resident in the country where center of person’s vital interests is located;
• if the person has the center of vital interests in both states or he does not have any permanent home in neither state, he will be tax resident in the state where he habitually resides;
• if the person habitually resides in both states or he does not reside in neither state, he will be considered as tax resident in the state where he has local nationality;
• if the person has dual nationality in both contracting states or neither of the contracting states, tax residency is decided by mutual agreement between the authorities of both states.

If you meet the criteria above, you might be considered as tax resident in Romania. An in-depth analysis should be made based on the facts and circumstances at the proper time.Our specialist can assist the clients who wish to attain their fiscal residency in Romania by:

• setting up a trading company with a tax rate of 3% (if you have no employees) or 1% (if you have at least one employee)
• preparing the file to obtain registration of the residence with the General Immigration Inspectorate
• our tax advisors can thereafter fill in your file to obtain your tax residency certificate in Romania