10 Reasons Why You Should Invest in Constanța

Known as one of the largest port cities in Europe with a variety of intermodal connections, Constanța has evolved over time into one of the most promising business opportunity locations the CEE can offer. With a rich history of culture, business, and trade, Constanța has become one of the most competitive and dynamic cities in the European Union during the last decade.

There are multiple reasons why you should invest in Constanța. Take a look below at some of the remarkable business opportunities this city can provide, combined with favorable tax incentives, state support for key businesses, and the skilled multilingual talent pool. RISE Consortium is committed to ensure the best support for foreign investors, throughout all stages of the process.

1. Biggest port on the Black Sea

Constanța is the biggest port on the Black Sea and can become a significant trade link between the EU and Africa, the Middle East, Asia, and the Americas. The port has significant capacity to expand further, and has benefited from substantial private investment in recent years.

2. Extensive tourism infrastructure

Constanța is one of the most attractive tourism spots in Romania. According to a World Bank survey, half of the Romanian population (around 10 million people) has visited Constanța at least once over the past 5 years.

Constanța and the surrounding area, including the beach resorts on the Black Sea, have a substantial potential for growth, making it an ideal location for public-private investments in tourism infrastructure, with a focus on expanding the international tourism market. Constanța would benefit from connections with international tourist networks, as well as private investments in new resorts. The beaches are amazing, and tourists pour in from all over Romania and the region, particularly in the hot summer months.

3. Good connective infrastructure

Constanța is the only city in Romania with a port, airport, and railway connection. Constanța is also well connected by highway and high-speed rail to Bucharest, it is connected to the Danube River through the Black Sea – Danube Channel (so it can receive barges from within mainland Europe), and it is the only city in Romania with a highway bypass.

The existent port infrastructure, as well as good connective infrastructure (ring road, highway to Bucharest, high-speed rail to Bucharest, channel to the Danube) make Constanța an ideal investment site for logistics companies and manufacturing companies.

4. Pioneering GDP growth

Of the 256 largest cities in the EU, Constanța has registered one of the fastest growth rates between 2000 and 2015. Constanța has actually registered a faster annual growth rate between 2000 and 2015 (8.52%) than Singapore in its period of rapid growth – 7.25% between 1965 and 1980.

GDP per Capita growth rate in selected EU cities, between 2000 and 2015

Constanța GDP per Capita (PPS) Growth rate between 2000 and 2015 and Singapore’s GNI per Capita (Atlas Method) growth rate between 1965 and 1980

GDP per Capita (PPS) in Constanța and in EU Secondary Cities

5. Skilled Labor Force

Around 176,500 people were gainfully employed in the Constanța Metropolitan Area at the 2011 Census. Of these, 83% worked for a private company, 12% worked for the public sector, and 5% were self-employed. Much of the Constanța labor force works in retail (20%), transport (14%), manufacturing (particularly oil production and ship building) (12%), and construction (8%).

Of these, 83% worked for a private company, 12% worked for the public sector, and 5% were self-employed. Much of the Constanța labor force works in retail (20%), transport (14%), manufacturing (particularly oil production and ship building) (12%), and construction (8%)

The main sectors of employment for the labor force in the Constanța Metropolitan Area

6. Competitive Salaries

In 2017, the average monthly net salary in Constanța was 2,126 Romanian Lei (around 470 Euro, or around $530). When compared to average 2017 monthly net salaries in other EU countries, Constanța is very competitive from the point of view of an accessible, skilled labor force.

The highest salaries are offered in the following sectors: oil and gas (~$1,500); extraction industry (~$1,350); petrochemical industry (~$1,225); the production and distribution of energy (~$1,200); air transport (~$875); water transport (~$805); ship building (~$760); public administration (~$750); warehousing and auxiliary transport services (~$705); financial intermediation and insurance (~$660).

The lowest monthly salaries were offered by sectors such as: textiles (~$220); paper products (~$235); leather products (~$250); furniture (~$260); waste collection (~$310); plastics industry (~$315); hotels and restaurants (~$320); food industry (~$330); retail (~$335); insurance (~$355); cleaning and protection services (~$375); agriculture ($380); and real estate transactions (~$385).

7. Cost of Living

8. Low Corporate Tax

Romania has one of the lowest tax rates on the continent: the standard corporate tax rate is 16%, about half the tax you would pay in France, Germany or Italy. Fiscal incentives include tax exemption for the reinvested profit.

9. Supporting Private Investment

For companies settling in Constanța, the maximum available State Aid is 37.5 million EUR, and the gross percentage of the state aid cannot exceed 50% of eligible expenditures.

Local authorities can also support private investment projects that go above a certain ceiling of job creation and investment values, within the framework of the local de minimis aid schemes. The Municipality of Constanța applies such a scheme (through Local Council Decision 2075/2016), reducing the property tax by 50% for companies that invest in the tourism sector.

Details on state aid schemes can be obtained here: http://investromania.gov.ro/web/state-aid/

10. Growth Drivers in Constanța