Before any investment, one must evaluate their knowledge, time horizon and money available. For a beginner or in lack of proper access to information about potential investments, the recommended first step would be to buy investment fund units that have exposure on the Romanian stock and bonds market, that is operated by the Bucharest Stock Exchange (www.bvb.ro ). At the Bucharest Stock Exchange, main listed companies are energy, utilities and banks, many of them are State Owned Enterprises. A key reason that attracted investors in the past 5 years is the high rate of dividends, that was on average more than 10%/year for the main listed companies included in the lead index BET. Utilities companies are defensive companies and go stable in any case, and banks, pharma or other consumer related companies have a better drive in growing times.
For indirect investments, one may find data related to available investment funds at http://www.aaf.ro/en/statistici-fonduri-de-investitii/ or in various business media.
For direct investments, besides press articles or other sources, the Bucharest Stock Exchange website is a valuable source of information about the main listed companies, their financial results, decisions taken by the General Shareholders Meetings, as well as the prices of stocks. Investors Clubs are another source of gaining insights about the market mood.
After having the decision on the way to go forward, if you want a direct investment, you will need a broker, that could be a bank, also through their private banking division, or an independent company. Top intermediaries list is available at: http://bvb.ro/Intermediaries/ListOfIntermediaries/TopOfIntermediaries
Regarding taxation, in case you are not a resident in Romania, the broker will register you at the Romanian fiscal authority and you will pay no taxes in Romania. In case of the fiscal residence in a different country, the broker will give you at the beginning of the year a statement with profit and losses realized in the previous year to be submit in your country of residence authority, also in line with the double treaty agreement Romania has with your country.
Information provided by Daniela Șerban, President of the Board of Directors, Romanian Investor Relations Association
Another English speaking specialists in these matter: Lucian Bondoc (Lawyer, Managing Partner BONDOC & ASOCIAȚII)
Important notice: The contents of this material should not be treated as a substitute for obtaining specific advice relating to legal, regulatory, commercial, financial, audit and tax matters. The readers are to make their own independent assessments concerning such matters and should ask for professional legal/tax advice before taking any action based on this material. Neither this guide, nor any part of it nor anything contained in this material or referred to in it nor the fact of its distribution, should form the basis of or be relied on or act as a recommendation to pursue (or not to pursue) a particular course of action.