This has hindered U.S. poultry exports to Romania. The cost of doing business in Romania is high, particularly for office rentals, transportation and telecommunication services. Lack of an efficient, modern payment system further delays transactions in Romania. Capital requirements for foreign investors are not onerous, but local capital remains very expensive. Also, taxes on both profits and operations are steep.
Investors complain of inconsistency in Romania's policy on tax incentives for foreign companies.
Previously foreign companies qualified for some tax exemptions, based on the size of their investment. Given significant fiscal constraints and under IMF pressure, the GOR rescinded this in 1999, except for the case of the French car maker, Renault, which purchased the national Romanian car manufacturing company, Dacia Pitesti. There are few formal barriers to investment in Romania. There are no legal restrictions on the repatriation of profits and equity capital. The continually changing legal regime for investment and privatization, however, forms a significant barrier to investment.