Despite low tax rates, Romania scores low in PwC’s ranking of most business-friendly countries

Romania ranks 28th in a ranking of the 34 most attractive countries in Europe, the Middle East and Africa (EMEA) for private companies, according to the EMEA Entrepreneurial & Private Business Heatmap analysis carried out by the PwC network. Poland, Croatia and Greece rank even weaker, though.

Romania appears in the top third of jurisdictions for tax and regulatory environment (thanks to the lowest income tax rate and 7th lowest corporate and VAT rates among the 34-country sample) and macroeconomics - thanks to high GDP growth (6% in 2021) and fast advance of consumption.

Romania benefits from a 68.3% working-age population, 2nd amongst the ranked territories. Notably, however, a significant part of the country’s workforce is already abroad.

Private businesses in Romania can also benefit from one of the fastest accelerating economies and one of the lowest CO2 emissions (an indication of still weak industrialisation).

Public spending on health and education and, surprisingly, low internet usage and broadband access compared to the 34-country sample are dragging down Romania’s attractiveness among investors.

(Photo source: Dreamstime.com)