Starting a business in
🇷🇴Romania
Checked November 4, 2026 · How we score
Corporate tax
16%
Top income tax
10%
Setup from
$800
all-in, first year
Time to form
5 days
can be done remotely
Taxes in Romania
| Corporate income tax | 16% 16% standard rate. Micro-enterprises (turnover up to EUR 100,000 from 2026, with at least one employee) pay 1% of revenue; the 3% bracket was abolished. Minimum turnover tax applies to large companies. Check for further changes planned for 2027. |
|---|---|
| Personal income tax (top) | 10% Flat 10% on most income. Employees and freelancers also pay pension (CAS 25%) and health (CASS 10%) contributions, with thresholds linked to the minimum wage. |
| Tax system | Worldwide income |
| Capital gains tax | 16%Gains from securities were taxed at 1%–3% (short-term) or 10% before 2026 and moved to a 16% rate; confirm current treatment with the tax agency. |
| Dividend withholding (non-residents) | 16% |
| VAT / GST | 21% |
| Social security | Employee CAS 25% and CASS 10%; employer work insurance contribution 2.25%. Dividend tax for individuals and non-residents rose from 10% to 16% on 1 January 2026 (0% for qualifying EU parent companies). VAT rose to 21% in August 2025. |
Forming a company in Romania
| Usual entity | SRL (limited liability company) |
|---|---|
| Minimum capital | $45 |
| Setup cost (all-in) | $800–$2,000 |
| Annual running cost | $800–$2,500 |
| Time to incorporate | 5 days |
| Form remotely as a foreigner | Yes |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | No |
| Business banking for non-residents | Moderate |
Residency and visas
Digital nomad visa requires income of 3x Romania's average gross salary (roughly EUR 4,500–5,000/month). The investor residence permit requires about EUR 100,000 in a company with local hires but is rarely used.
| Digital nomad visa | Romania Digital Nomad Visa, $5,500/month income |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 3/5 (1 = easiest) |
Special tax regimes
Micro-enterprise regime
1% tax on revenue for companies with turnover up to EUR 100,000 and at least one employee; the 3% bracket ended on 1 January 2026.
IT tax exemptions
Software developers historically paid no income tax on salary; the exemption was scaled back in 2023–2025 and needs to be checked before relying on it.
R&D super-deduction
Extra 50% deduction on qualifying R&D expenses.
Pros and cons
Why founders pick Romania
- 1% micro-enterprise tax on small turnover
- Low registration cost and fast incorporation
- Large IT talent pool and low payroll cost
- EU member with digital nomad visa
Watch out for
- Tax rates and thresholds have changed repeatedly (2025, 2026)
- Dividend tax rose to 16% in 2026
- Micro regime requires an employee and may be phased out
- Bureaucracy and Romanian-language filings
- Non-resident banking is slower than in the Baltics
Best for: IT freelancers and small studios under EUR 100k turnover · Outsourcing and shared services · Founders targeting Eastern Europe
Romania: common questions
What is the Romanian micro-enterprise tax?
A 1% tax on revenue for companies with turnover up to EUR 100,000 from 2026. The 3% bracket was abolished, and the regime may be reviewed again for 2027, so check the current rule before incorporating.
Can a foreigner open a company in Romania?
Yes. Non-residents can register an SRL via the Trade Register using a lawyer and a power of attorney. Registration takes about 3–7 days, costs USD 800–2,000 including a registered office, and requires a Romanian bank account for the share capital.
What is the dividend tax in Romania?
16% from 1 January 2026 (up from 10%). Dividends paid to qualifying EU parent companies may be exempt, and treaties can reduce the rate for other non-residents.
Does Romania have a digital nomad visa?
Yes. Non-EU remote workers earning three times Romania's average gross salary (roughly EUR 4,500–5,000 per month) can obtain a one-year visa renewable once, but the permit does not make you tax resident unless you stay 183 days.
What are Romania's social contributions for freelancers?
Pension (CAS) 25% and health (CASS) 10%, applied to income within thresholds set by the minimum wage (6, 12 or 24 minimum wages), so high earners hit a ceiling.
Sources
- ANAF (National Agency for Fiscal Administration)
- ONRC – National Trade Register Office
- PwC Worldwide Tax Summaries – Romania
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.