LIVING IN ROMANIA

Daily life and people

With Romanians able to trace their ancestry back to the days of the Romans, they also claim similar character traits, being lively, sociable and warm people who live life to the full. Embracing EU accession with open arms, the Romanians are reportedly keen to be part of a greater Europe, especially the younger generation who have an incredibly optimistic outlook.

Family values are hugely important in Romania, as they are in many other Eastern European countries, with art and music also central to life and reflecting the strong folklore roots.

Visas, permits and residency

UK, USA and EU residents do not require a visa to enter Romania for a period of up to 90 days, but if you intend to stay for longer, you must register for a temporary residency permit at the local passport office within 15 days of first entering the country. Once you are registered, you will be issued with a residency permit that is valid for one year and can be renewed at the end of this period for between three and six years. Once the temporary permit has expired and depending on your individual situation, you will be able to apply for permanent residency.

Utilities

In order to get connected to utilities, you first need to register for them. This can be a lengthy process that’s likely to take a few weeks. You will first be required to secure a document from the land registry stating that you are the new owner of the property, but instead of then attempting to connect to utilities yourself, unless you speak Romanian, it is recommended that you organise for your estate agent to sort this out for you.

Most utility companies are state owned. Gas is available from local gas stations, while water and sewage are organised by the local government. Electricity is generally supplied by Electrica (www.electrica.ro). Bills tend to be cheap, but not all utilties are available depending on how isolated the area is. As you may well be required to pay in advance for your heating or electricity – Romania is still very much a cash-only country – you should contact the Ministry of Industry and Trade for details on the county you are looking to buy in.

Mobile phones are owned by 20% of Romanians, and Orange have a mobile phone company operating in Romania (www.orange.ro) as do Alcatel Romania (www.alcatel-lucent.ro), who also offer broadband services.

Banking and currency

The Romanian currency is the leu, with one leu subdivided into 100 bani. Coins can be acquired in denominations of 5, 10, 50 bani and banknotes in 1, 5, 10, 50, 100, 200, 500 lei. Romania is expected to adopt the euro in 2014.

In order to open a bank account, you only need your passport and there is a choice of opening a euro, Romania leu or pound sterling account, with a £35 deposit. There are a number of banks which offer services in English:

• Alpha Bank, www.alphabank.ro
• BRD – Groupe Société Générale, www.brd.ro
• Citibank, www.citibank.com
• HVB Banca Tiriac, www.unicredit-tiriac.ro
• National Bank of Romania, www.bnro.ro
• ING Romania, www.ingromania.ro.

Opening hours are usually 9am to 1pm, Monday to Friday.

Taxes

As with all countries, taxes apply depending on whether or not you are classed as a tax resident in Romania. You are classed as a tax resident if you reside in the country on a permanent basis, or spend at least 183 days a year there. Companies are classed as tax residents if the management of the company is based in Romania. As a tax resident you will be taxed on your Romanian and worldwide income, but as there is a double taxation treaty in place with the UK, you will not be taxed twice. Non-residents will only be taxed on income generated in Romania, such as rental income.

Income tax and corporation tax are levied at a flat rate of 16%, as is capital gains tax for both individuals and companies. However, if you have owned a property for two years, this rate drops to 10% with no capital gains payable if you sell the property after three years of ownership. VAT is usually levied at 19%.

Insurance

It is recommended that you take out private medical insurance in Romania. There are many companies that offer insurance for your car and home and you should have few problems finding an English speaker, as many of these firms are part of international corporations:

AIG, www.aiglife.ro

BT Asigurări, www.bta.ro

The Generali Group, www.generali.com

Omniasig, www.omniasig.ro

Healthcare

Healthcare standards in Romania are very poor, so foreigners must ensure they get private medical insurance to cover any treatment they may need. While doctors are well trained, facilities are poor and English is not widely spoken, especially outside of the larger hospitals.

As Romania is now part of the EU, all EU residents are entitled to free medical treatment on the production of an EHIC card. Visit the Department of Health website, www.dh.gov.uk, for more details. However you may be expected to pay cash upfront for any additional treatment in a state hospital, or just to ensure you get the best treatment possible.

Retirement

It is still early days in the Romanian property market and consequently most buyers tend to be investors rather than permanent relocators, with no expat community existing there yet. As such, anyone thinking of retiring to Romania needs to be prepared for a big culture shock, and to have a real sense of adventure!

Education

The education system in Romania underwent a major overhaul following the collapse of communism in 1989. Education in Romania is not up to the standards of Western Europe and so if you are looking to relocate with your family, it is recommended that you educate your children in an international school.

• Fundatia International British School of Bucharest, www.cobisec.org
• American International School of Bucharest, www.aisb.ro
• The International School of Budapest, www.isb.ro
• Cernavoda International School (tel. +40 241 239 090)
• International Computer High School of Constantza, www.ichc.ro
• Acorns British Style Nursery, www.acorns.ro.

Should you look at enrolling your child in a Romanian school, while you are entitled to education, be aware that all applications are vetted by the International Relations Department within the Ministry of Education.

Driving

While the Romanian driving laws are strict, Romanian drivers often flout or disregard them. The standard of roads varies dramatically throughout the country, with the main roads and one motorway – Pitesti to Bucharest – being in good condition, while rural roads are full of potholes. Romanian roads tend to be traffic free outside of the larger towns and cities, and they are also often very scenic – driving is possibly the best way to see the country.

Romanians drive on the right and your British driving licence is valid so long as it carries a photo; otherwise, an international driving licence is required. The speed limits are as follows:

• motorways: 130km/h (80mph);
• open roads: 90km/h (55mph);
• towns: 50km/h (31mph).

Be aware that in rural and mountainous areas, roads can be perilous and there is the possibility of meeting horse-drawn carts, pedestrians and animals.

Getting around

There are some domestic flights in operation in Romania, with Tarom (www.tarom.ro) serving several Romanian cities from Bucharest. If you are looking to travel by bus be prepared for some confusion, as they are fairly sporadic, and bus stops are not clearly marked. There are several operators in the country, with one of the largest being Autogari (www.autogari.ro), which connects most of Romania’s major towns and cities. Eurolines (www.eurolines.ro) also offer services between Romanian cities, as well as international services.

While facilities can be very basic, the Romanian railways serve every nook and cranny of this scenic country, with prices being amazingly cheap and the service prompt. The Romanian Railway is run by CFR (www.cfr.ro). In Bucharest you can get about by tram, trolley bus, metro or bus – www.romaniatourism.com has full details on transport in the city.

Learning the language

Unlike its Eastern European counterparts, Romanian is a Romance language, descended from Latin and being part of the French, Spanish and Italian group. While English is increasingly spoken among students, there are still many people who only speak Romanian and so it is recommended that you get to grips with some basic phrases and employ the services of a local – either your lawyer or estate agent – to help you get settled in the country. A smattering of German is spoken in some areas, and Hungarian in Transylvania. While Russian was once widely spoken and is still well known, Romanians are reluctant to speak it.

Romanian has a distinctive eastern influence, with a number of words adopted from Turkish and Greek. However, those with knowledge of a Romance language will find it easier to learn Romanian than many other Eastern European languages, and many words are instantly recognisable.

Shopping

Shops are normally open from 9am to 6pm. While there are hordes of Dracula T-shirts and the usual tourist tat, there are also a number of attractive handmade items on sale in Romania, plus some excellent flea and antique markets.

Imported goods are extremely expensive in comparison with local products, such as Romanian wine, which is excellent and only costs around £2 a bottle. However, even Bucharest isn’t the destination for a long weekend of shopping, with only the World Trade Plaza (www.wtcb.ro) and Unirea Shopping Centre (www.unireashop.ro) offering a good selection of upmarket products.

There are a number of supermarkets and hypermarkets where you can buy all the produce you need, such as the Metro chain, Billa supermarkets (www.billa.ro) and Penny Market, with Tesco looking to launch into the market in the future.

Post

Post offices tend to be open from 7am to 8pm, Monday to Friday. As in the UK, post boxes are red, and they are clearly labelled Poştă, as are all Post Offices. It normally takes around five days for a letter to reach the UK from Romania and two weeks to Australia or America. Visit www.posta-romana.ro for more details.

Crime, corruption and the police

Romania does suffer from corruption, with legislation changing regularly and a weak enforcement of property laws. Agents insist that while bribery was rife five to ten years ago, today things are much safer. However, you need to be careful about who you buy from and to make sure you avoid being charged more than a local purchaser.

If there is an emergency, dial 112 or 955 for the police.