Banking, Money and Taxes in Romania
Romania is a member of the EU; however, it has yet to switch over to the Euro. The planned conversion is set to take place in 2014. The currency currently used in Romania is the Romanian leu (RON); each leu is divided into 100 bani. The country’s currency can be confusing at times, as there have been a number of currency reforms in recent years. The most recent currency reform took place in 2005, when the old Romanian leu (ROL) switched to the new leu (RON); 10 000 of the old leu are worth one new leu. Bank notes in Romania range from one leu to 100 lei, while coins are minted in denominations of one ban through to 50 bani. The one-ban coin is rarely used.Romania is eager to show the European community that its currency is stable, and that its banking system and central bank are well managed. While banking in Romania is relatively easy, and expats moving to Romania will find all the banking systems and services, such as Internet banking, that they are familiar with, you may need to shop around. Some Romanian banks do not offer services to expats, and others only offer limited banking products to those without Romanian citizenship.
In order to open a bank account, expats need their passport, as well as a further copy of their passport, proof of residency, bank statements from previous banks and an initial deposit; sometimes, a copy of your contract or proposed monthly salary is also useful. Not all banks require all of the above documents. Some of the better-known banks that serve expat needs include Alpha Bank, Bancpost, UniCredit, BCD Groupe Societe Generale and HVB Bank. International banks with branches in Romania are Citibank, the Royal Bank of Scotland and the National Bank of Greece.
The tax system in Romania is a great incentive for expats wishing to relocate to Eastern Europe. Romania has a flat tax-rate of 16 percent on corporate and individual income. Some smaller companies only have to pay a three percent tax-rate. Capital gains tax is also 16 percent for companies, while individuals only have to pay a CGT of between one and three percent on the sale of personal real estate.
