If you are foreign investor in Romania (legal or natural person) you should be aware of the double taxation treaties that Romania has signed so that not to pay taxes in more than one country.
Romania has been signing this kind of treaty since before 1989.
In 2001 Romania and the Federal Republic of Germany signed such a Double Taxation Avoidance Agreement concerning mainly taxes on income and on capital.
This Agreement refers to the following types of taxes which are under Romanian tax law: tax on income, tax on profit, tax on property, tax on agricultural income, tax on dividends.
In the case of Germany the types of taxes covered by the present agreement are: the tax on income, the tax on corporation, the tax on land, and the commercial tax.
The Convention shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of this Convention in addition to, or in place of, the existing taxes.
Income derived by a resident of one of the countries from immovable property (including income from agriculture or forestry) situated in the other country may be taxed in that other country.
In the case of dividends paid by a company of one of the countries to a resident of the other country these may be taxed by that other country.
However the rate of tax imposed by the first-mentioned Contracting State on such dividends shall not exceed 5 percent of the gross amount of the dividend.
Business profits of a resident of one of the country shall be exempt from tax by the other country unless the resident has a permanent establishment in that other country. If the resident has a permanent establishment in that other country, tax may be imposed by that other county on the industrial or commercial profits of the resident but only on so much of them as are attributable to the permanent establishment.
This Convention for the Avoidance of Double-Taxation also contains stipulations on the taxation of capital gain, independent professions, pensions etc. It is important to be noted that the stipulations of these Conventions must also be corroborated with EU regulations (applicable in Romania through the Fiscal Code).