Economic freedom and friendly taxation are essential aspects of Romanian business environment for entrepreneurs and especially for foreign investors. There is a close competition among world’s developed countries to create favorable conditions for attracting foreign direct investments. The global experience has shown that the main condition for attracting foreign investors is improving the investment climate. When referring to the dynamics of foreign direct investment in Romania, it is noticed that since 2003 until present they have recorded a positive trend. This is explained primarily due to increased foreign direct investment flow from the European Union to Romania (it is noticed that in 2006 which is the year that preceded Romania’s integration in the European Union, the FDI registered the highest growth of 57.7%), but also due to economic performance of our country. This increase can be explained by the fact that foreign investors have viewed the profit opportunities, relatively high in the Romanian economy, either as Greenfield investments and either through buying, mergers and acquisitions.