Why was this mostly filmed in Romania?

Couldn't be budget reasons, as they would have to fly a lot of people and equipment there.

Yes, it were budget reasons, because labour is much cheaper in Romania, especially in 2003 it was only a small part of what you pay in America.

This was a very expensive mega production and wouldn't have been made at all without the cost savings in Romania, the director said in interviews.

They did scout for locations in NC but couldn't find landscapes that looked rural enough to pass as the 1860's.

Romania still has the largest virgin forests in Europe.
"Cold Mountain" looks fantastic.

It was something of a game changer for the film industry in Romania because since then many other American productions shot there:

This year for example "Sons of Liberty"(2015) and "The Keeping Room"(2015):

http://www.imdb.com/search/title?locations=Romania&ref_=ttloc_loc_3

That's remarkable because the Romanian state doesn't offer any tax breaks or rebates at the moment,
but the savings are still so big, that you're better off than in other countries.

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