This Romania tax guide covers the rules in force from 1 January 2026. Romania taxes salaries, freelance profits and rent at a flat 10%, companies at 16%, and lets small companies with revenue up to €100,000 (~$112,000) pay just 1% of turnover instead of profit tax. VAT is 21%, there is no wealth, inheritance or gift tax, and residency follows a 183-day test. The 2025–2026 fiscal packages raised dividend tax to 16% and foreign-broker capital gains tax to 16% from 1 January 2026.
Introduction
Romania sits in south-eastern Europe, bounded by the Carpathians, the Danube and the Black Sea, and borders Ukraine, Moldova, Hungary, Serbia and Bulgaria. It has about 19 million people and has been an EU member since 2007, a NATO member since 2004 and a full Schengen member since 1 January 2025, but it keeps its own currency, the leu (RON). It is a semi-presidential republic with a civil-law system; Romanian is the official language and English is widely spoken in the tech hubs of Bucharest, Cluj-Napoca, Iași and Timișoara. The climate is continental — hot summers, cold winters — and the cost of living is among the lowest in the EU, with famously fast fixed broadband.
For internationally mobile investors, this Romania tax guide matters because the country pairs full EU market access with one of the bloc’s lowest headline tax burdens: a 10% flat income tax, a 1% turnover tax for small companies and an employer social charge of only 2.25%. That appeal has been dented by fiscal consolidation. VAT rose from 19% to 21% on 1 August 2025, and from 1 January 2026 dividend tax rose to 16%, capital gains on trades through foreign brokers rose to 16%, and the micro-company ceiling fell from €250,000 (~$280,500) to €100,000 (~$112,000).
Direct Taxes
Romanian tax residents — individuals and companies — are taxed on worldwide income. Foreign nationals are taxed only on Romanian-source income until they become resident, after which worldwide income is caught; there is no non-dom or remittance regime. Progressivity barely exists: one 10% rate applies to salaries, freelance profits and rent, while investment income carries its own flat rates. A company is resident if incorporated in Romania or effectively managed from it. The key concept for investors is the micro-company regime — a 1% tax on revenue in place of corporate income tax for small Romanian companies.
Personal income tax (2026 rates)
| Income type (RON, USD) | Rate |
|---|---|
| Employment income — no tax-free band | 10% (flat) |
| Self-employment / freelance (PFA) net income | 10% |
| Intellectual-property income (after a 40% flat deduction) | 10% (~6% effective) |
| Pensions — portion above RON 3,000 (~$630) a month | 10% |
| Romanian-source income of non-residents outside the EU and treaty network | 16% |
| Income from unidentified sources (assessed by ANAF) | 70% |
Romania’s flat tax of 10% has applied since 1 January 2018, when it replaced a 16% flat rate, and it is unchanged for 2026 — the rises fell on investment income instead. There is no tax-free band beyond a small personal deduction for low-paid employees. Sector exemptions for IT, construction and agriculture employees were scrapped from 2025, but salaries for qualifying R&D work remain exempt, salary paid by a foreign employer for work performed abroad is non-taxable, and from 2026 employees can deduct up to €400 (~$450) a year of ETF purchases made through Romanian brokers. The gross minimum wage is RON 4,050 (~$850) a month, rising to RON 4,325 (~$910) from 1 July 2026.
Corporate income tax
| Item | Rate |
|---|---|
| Standard corporate income tax (unchanged in 2026) | 16% |
| Micro-company tax — revenue up to €100,000 (~$112,000), from 1 January 2026 | 1% of revenue |
| Micro-company tax — 2025, revenue ceiling €250,000 (~$280,500) | 1% or 3% of revenue |
| Minimum turnover tax (IMCA) — turnover above €50 million (~$56 million) | 0.5% in 2026; abolished from 2027 |
| Supplementary turnover tax on banks (2024–2026) | 2% or 4% |
| Nightclubs and gambling operators | Higher of 5% of revenue or 16% of profit |
To qualify as a micro-company, a Romanian entity needs at least one employee, a private shareholder base and no activity in banking, insurance, gambling or oil and gas; a shareholder holding more than 25% may use the regime for only one company. Romania transposed the EU Pillar Two Directive (Law 431/2023) from 1 January 2024, imposing a 15% minimum on groups with revenue of at least €750 million (~$841 million). Dividends between Romanian companies bear 16%, falling to 0% with a 10% stake held for one year, and the same participation test exempts EU dividends. Non-residents face 16% withholding on dividends, interest, royalties and services, cut by EU directives and nearly 90 tax treaties; a 50% rate hits artificial payments to jurisdictions without an information-exchange agreement. Losses carry forward five years but may offset only 70% of each year’s taxable profit.
Social security and health contributions
| Contribution | Employee | Employer | Self-employed |
|---|---|---|---|
| Pension (CAS) | 25% | 0% (4% or 8% for special work conditions) | 25% on a chosen base of 12 or 24 minimum wages |
| Health (CASS) | 10% | — | 10% of net income, capped at 72 minimum wages |
| Work insurance (CAM) | — | 2.25% | — |
| Health (CASS) on dividends, gains, interest and rent | 10% of a 6, 12 or 24 minimum-wage base | — | Same |
Employee contributions are uncapped, so a salaried worker loses about 41.5% of gross pay to contributions and tax, while the employer adds only 2.25%. For 2026 the caps use the lower minimum wage of RON 4,050 (~$850): 6 minimum wages are RON 24,300 (~$5,100), 12 are RON 48,600 (~$10,200), 24 are RON 97,200 (~$20,400) and 72 are RON 291,600 (~$61,300). A freelancer’s mandatory pension contribution therefore tops out at RON 24,300 (~$5,100), and the self-employed health cap rose from 60 to 72 minimum wages in 2026. Investment and rental income attracts CASS only once it reaches RON 24,300 (~$5,100) a year, and never more than RON 9,720 (~$2,040).
Indirect Taxes
Romania applies the EU VAT Directive, and VAT is its main indirect tax. Both the standard and reduced rates were raised on 1 August 2025 under Law 141/2025, the first fiscal-consolidation package.
Value-added tax (VAT)
| Rate | Applies to (examples) |
|---|---|
| 21% (standard; 19% before 1 August 2025) | Most goods and services, including new housing |
| 11% (reduced; replaced the 5% and 9% rates on 1 August 2025) | Food (excluding high-sugar products), medicines, water, books and press, hotels, restaurants, firewood, winter heating, museum entry |
| 0% (zero) | Exports, intra-EU supplies, international transport |
| Exempt without credit | Banking, insurance, licensed medical and education services |
The registration threshold is RON 395,000 (~$83,000) of annual turnover, and businesses with turnover up to RON 5,000,000 (~$1.05 million) can opt for cash accounting. New homes up to 120 m² and RON 600,000 (~$126,100) used to qualify for 9% VAT; a transitional window for buyers who paid an advance by 31 July 2025 was extended once and closed on 30 September 2026, so new housing is now taxed at 21%. Input VAT on most passenger cars and their running costs is only 50% deductible.
Excise and other indirect taxes
| Tax | Notes |
|---|---|
| Excise duties | Alcohol, tobacco, energy and electricity, plus sugary drinks and vapes; cigarettes RON 718.97 (~$151) per 1,000 from 1 April 2026; unleaded petrol RON 3,059.80 (~$643) per 1,000 litres |
| Property transfer | No transfer tax for companies; individual sellers pay 3% (held up to 3 years) or 1% (held longer) of the price, withheld by the notary, plus notary and land-registry fees |
| Logistics fee (from 1 January 2026) | RON 25 (~$5) per parcel from outside the EU valued under €150 (~$168) |
| Construction tax | 0.5% of the net value of company-held constructions not subject to building tax |
| Environmental contributions | Packaging, waste, bags, oils and electronics, payable by producers and importers |
The property-sale tax is levied on the declared price or, if higher, the notaries’ minimum valuation grid, so under-declaring a price does not lower it.
Other Taxes Worth Knowing
| Tax | Romania treatment |
|---|---|
| Capital gains tax | Shares via foreign brokers, investment gold and crypto: 16% (10% in 2025); via Romanian intermediaries: 3% (held 365+ days) or 6% (shorter), withheld at source (1%/3% in 2025); real estate 1% or 3% of the price |
| Dividends (resident individual) | 16% final (5% to 2022, 8% in 2023–2024, 10% in 2025) plus capped CASS |
| Interest (resident individual) | 10% final withholding |
| Rental income | 10% on gross rent less a 20% flat deduction — ~8% effective; up to 7 tourist rooms: 10% after a 30% deduction |
| Crypto-assets | 16%; gains under RON 200 (~$42) per transaction exempt if the year’s total stays within RON 600 (~$126) |
| Wealth / net worth tax | None — but a 0.9% special tax (0.3% in 2025) applies to homes valued above RON 2,500,000 (~$525,500) and cars costing more than RON 375,000 (~$78,800) |
| Inheritance / estate tax | None — 1% only if the succession is not completed within two years of death |
| Gift tax | None — real-estate gifts outside spouses and relatives to the third degree are taxed like a sale (1%/3%) |
| Immovable property tax (annual) | Local tax: residential 0.08%–0.2% and non-residential 0.2%–1.3% of taxable value; 5% for company buildings not revalued in 5 years |
Romania’s capital gains base is not narrow, but its rates are low and the broker route matters: the same share sale costs 3% when held a year through a Romanian intermediary and 16% when held through an overseas platform. Local property tax for individuals jumped in 2026 because Law 239/2025 sharply raised the per-square-metre taxable values and barred councils from cutting rates; the matching increase for companies was deferred to 2027, when the government plans to move to market-value taxation. For a typical investor, the real burden is 16% on dividends, 3%–16% on gains and roughly 8% on rent, topped by a health contribution of at most RON 9,720 (~$2,040) a year.
Disadvantages & Risks
Romania’s main weakness is political instability. The PNL-led coalition of Ilie Bolojan was toppled by a Social Democrat (PSD) and far-right AUR no-confidence vote on 5 May 2026, leaving a caretaker government for five months; President Nicușor Dan’s fourth nominee, diplomat Luca Niculescu, faces an investiture vote on 20 October 2026 with PSD backing conditional on no new tax rises. Behind this sits a fiscal hole: the deficit hit 9.3% of GDP in 2024 and 7.9% in 2025, the 2026 target is 6.2%, and Fitch rates Romania BBB- with a negative outlook — the last rung of investment grade. Tax volatility follows: dividend tax has more than tripled since 2022, and VAT and investment taxes rose within twelve months. The leu hit record lows against the euro in 2026 and inflation ran near 10%, eroding local-currency returns, while the country sits on NATO’s eastern flank next to Ukraine.
Compliance is demanding rather than lax. Romania is under Council of Europe Moneyval enhanced follow-up, with 13 of 40 FATF recommendations rated only partially compliant in July 2026, though it is not on the FATF grey list and, as an EU member, not on the EU list of non-cooperative jurisdictions. ANAF runs mandatory e-invoicing and SAF-T reporting, and banks apply heavy onboarding checks to foreign clients. The micro-company regime demands real substance — an employee and one qualifying company per shareholder — and a foreign company managed from Romania becomes Romanian-resident. The tax advantage has also narrowed: the micro ceiling fell to €100,000 (~$112,000) and a standard company paying out its profits now bears about 29.4% combined.
Strategy & Ideal Profile
The workhorse structure is a Romanian SRL taxed as a micro-company: with one employee and revenue up to €100,000 (~$112,000), it pays 1% of revenue, then 16% on distributed dividends plus capped CASS. On €70,000 (~$78,500) of profit, that totals roughly 20%, against about 32% via the standard 16% + 16% route. High-earning freelancers can instead trade as a PFA: CAS and CASS are capped and deductible, so on RON 1,000,000 (~$210,000) of net income the all-in burden is about 15%. Investors should route trades through Romanian-licensed brokers for 3%/6% final withholding, and holding companies benefit from the 10%/one-year participation exemption on dividends. Property investors pay about 8% on rent and only 1% of the price on sales after three years.
Romania suits EU freelancers and small company owners who fit under the micro ceiling, investors and traders willing to use local intermediaries, dividend earners content with 16% and a health charge of at most RON 9,720 (~$2,040), and property investors seeking low running taxes. Remote workers can use the digital nomad visa, which requires income of three times Romania’s average gross monthly salary — roughly RON 27,800 (~$5,850) in 2026 (confirm with IGI). The residency rule is practical: you become resident by having your domicile or centre of vital interests in Romania, or by spending more than 183 days there in any 12-month period ending in the calendar year; until then, only Romanian-source income is taxed.
It does not suit anyone seeking a non-dom or territorial regime — residents are taxed on worldwide income, including foreign dividends at 16%. Service businesses above €100,000 (~$112,000) of revenue lose the micro regime, salaried high earners face uncapped contributions of about 41.5%, and crypto traders now pay 16%. Benefits also shift often: the IMCA and the oil-and-gas turnover tax disappear in 2027, the bank turnover tax is legislated only to end-2026, and any government will have to close a deficit still above 6% of GDP.
FAQ
Is Romania a tax haven?
No. Romania is an EU member that exchanges tax information automatically and is not on any EU or OECD blacklist. It is, however, one of the EU’s lowest-tax jurisdictions, with a 10% flat income tax and a 1% turnover tax for micro-companies.
What is the corporate tax rate in Romania in 2026?
The standard rate is 16% of taxable profit. Companies with revenue up to €100,000 (~$112,000), at least one employee and no excluded activities pay 1% of revenue instead, and groups with turnover above €50 million (~$56 million) face a 0.5% minimum turnover tax in 2026.
How does the micro-company regime work?
A Romanian company that ended the previous year with revenue of €100,000 (~$112,000) or less, has at least one employee and is the only micro-company of its main shareholders pays 1% of revenue quarterly instead of 16% corporate tax. If revenue crosses €100,000 (~$112,000), it switches to corporate tax from that quarter.
What is the 183-day rule in Romania?
You become a Romanian tax resident if you spend more than 183 days in Romania within any 12-month period ending in the relevant calendar year, or if your domicile or centre of vital interests is there. From that point, worldwide income is taxable; before it, only Romanian-source income is.
Does Romania tax capital gains?
Yes. Gains on shares held through Romanian intermediaries are taxed at 3% (held at least 365 days) or 6%, withheld at source. Gains via foreign brokers, investment gold and crypto are taxed at 16%, and property sales at 1% or 3% of the price.
Is there inheritance or wealth tax in Romania?
There is no wealth, inheritance or gift tax. Heirs pay 1% only if the succession is not completed within two years, and a 0.9% special tax applies to homes valued above RON 2,500,000 (~$525,500) and cars costing more than RON 375,000 (~$78,800).
How are dividends taxed for a Romanian-resident investor?
Dividends are taxed at a flat 16% from 1 January 2026, withheld at source for Romanian payers and self-assessed, with a foreign tax credit, for foreign ones. A 10% health contribution applies once investment income reaches RON 24,300 (~$5,100), capped at RON 9,720 (~$2,040) a year.
Sources
All figures should be checked against the primary government sources below.
- National Agency for Fiscal Administration (ANAF) — income tax, social contributions, VAT, annual single return — anaf.ro
- Ministry of Finance (Ministerul Finanțelor) — Fiscal Code, fiscal packages, budget execution — mfinante.gov.ro
- Legislative Portal (Ministry of Justice) — Fiscal Code (Law 227/2015), Law 141/2025, Law 239/2025, Law 431/2023 — legislatie.just.ro
- National House of Public Pensions (CNPP) — pension contributions — cnpp.ro
- National Health Insurance House (CNAS) — health contributions — cnas.ro
- General Inspectorate for Immigration (IGI) — residence permits and digital nomad visa — igi.mai.gov.ro
- National Bank of Romania (BNR) — exchange rates used for USD conversions — bnr.ro
USD figures are indicative conversions at ~1 RON = 0.210 USD and ~1 EUR = 1.12 USD (National Bank of Romania reference rates, 15 October 2026: USD 1 = RON 4.7571; EUR 1 = RON 5.3370) and rounded.
Last verified: 17 October 2026.
This is general information, not personal tax or legal advice. Tax outcomes depend on your specific facts; consult a qualified Romania tax adviser before acting.
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