If you want to start a business in Romania, it is recommended to pay attention to the taxation system. We present you in this article information about the main taxes imposed on companies with activities in Romania and the ones that must be paid by natural persons in 2026. You can also start your collaboration with our Romanian accountants.
| Quick Facts | |
|---|---|
| Tax system in Romania | Flat tax system for both corporate and personal income |
Personal income tax rate | 10% |
Corporate income tax rate | 16% |
| Value-added tax (VAT) rate | 21% (standard rate), 11% (reduced rate) applies to specific goods and services. |
| Labor insurance contribution by employers | 2.25% |
| Dividend tax rate | 5% |
| Capital gains taxes in Romania | 10% for individuals, 16% for companies |
| Tax year | Calendar year |
| Tax return filing deadline | May 25th following the tax year |
| Tax payment deadline | March 25th, June 25th, September 25th, December 25th |
| Gross minimum wage in 2023 | RON 3000 |
| Property taxes in Romania | 0.5% – 1.3% on non-residential buildings |
| Tax incentives for research and development | 50% deduction of R&D expenses |
| Tax treaties | Over 80 double tax treaties signed |
| Tax identification number (TIN) | Assigned by the National Agency for Fiscal Administration (ANAF) |
Table of Contents
Who is considered a tax resident in Romania?
Those spending more than 183 days in Romania during a 12-month period. The taxation is done on worldwide income.
What are the main taxes for companies with activities in Romania in 2026?
- 16% corporate income tax (CIT),
- 1% microenterprise tax for companies with an annual turnover of no more than EUR 100,000,
- 21% VAT with reduced rates,
- 16% dividend tax,
- extra 4% tax in the banking sector,
- 0.5% turnover tax for oil & gas companies in Romania,
- 5% tax of revenue for gambling companies or 16% imposed on taxable profit.
NOTE! Owners of commercial properties in Romania must pay 0.2% – 1.3% as building & land annual tax.
What is the personal income tax in Romania in 2026?
10% rate applied to employment income.
What are the social security & payroll taxes in Romania in 2026?
- 10% health insurance or CASS,
- 25% social security or CAS,
- 2.25% as labor insurance contribution.
NOTE! Both employee and employer must pay the social contributions in Romania.
Below you can explore an infographic with details on this topic:
How is the taxation done on microenterprises in Romania in 2026?
- the gross annual revenue is levied at a flat rate of 1%,
- the annual turnover should not exceed EUR 100,000,
- the microenterprise must have at least one employee.
NOTE! If the annual threshold is exceeded, the microenterprise gets out of this category and will be subject to the 16% CIT in Romania.
What is the administration in charge of taxes in Romania?
The National Agency for Fiscal Administration – ANAF. This institution collects the taxes in Romania.
What is the VAT rate in Romania?
- 21% standard VAT rate,
- 11% reduced VAT rate for food & beverages, HoReCa, medical supplies, agriculture and utilities, newspapers, schoolbooks, digital periodicals,
- 9% VAT on real estate transactions under certain conditions.
IMPORTANT! RON 300,000 is the VAT registration threshold in Romania. Companies with cross-border B2C e-commerce activities must register for VAT if reaching the EUR 10,000 threshold.
Does Romania sign double taxation treaties?
Yes, with various countries worldwide, to avoid double taxation on registered income.
Here is a video presentation with details about the main taxes in Romania:
How can companies in Romania benefit from the double taxation treaties?
- reduced withholding tax rates,
- foreign tax credits,
- double tax burden can also be eliminated through the Mutual Agreement Procedure (MAP) in Romania.
OBSERVATION! It is necessary to submit a Tax residence Certificate to claim the above-mentioned benefits.
What happens if companies fail to comply with the tax regulations in Romania?
ANAF can impose:
- tax audits,
- financial penalties,
- interest on unpaid taxes,
- business restrictions and enforcement actions, etc.
Company owners and natural persons can benefit from extra details about the taxes imposed in Romania by contacting our accounting firm.