Romania: Government allows tax breaks for foreign investors

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With the aim of encouraging start-up business, the government of Romania has approved a new law to introduce tax relief for foreign venture capitalists. The new law will be applicable to foreign individuals who were previously unconnected with the company in question, and invest any amount between EUR3,000 (USD3,375) and EUR200,000 to acquire equity shares of no more than 49 percent.

Investors will be exempt from tax on dividends for three years. Proceeds from the sale of equity shares during this three-year period will also be exempt.

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