Tax system in Romania
Romania taxes resident individuals on worldwide income, while non-residents are generally taxed on Romanian-source income. Tax residence is shaped by the 183-day rule, permanent home and centre of vital interests, with treaty tie-breakers where relevant.
The headline personal income-tax rate is 10%, but employees also pay 25% CAS pension contributions and 10% CASS health contributions. Companies generally pay 16% profit tax, while eligible micro-enterprises can use a 1% revenue-tax regime subject to a EUR 100,000 threshold and other conditions.
Romania also applies 16% dividend tax to distributions made from 2026, 3% or 6% tax on securities gains through qualifying intermediaries, 16% on crypto gains and other non-intermediated investment gains, 21% standard VAT and 11% reduced VAT. Local property taxes, transfer taxes and social contributions can materially change the result.
Tax rates at a glance
- Income tax
- 10%Flat headline rate
- Wealth tax
- 0%
- Inheritance tax
- 0% / 1%
- Capital gains tax
- 3% / 6%
- Corporate tax
- 16% / 1% micro
- Dividend tax
- 16%
- VAT
- 21% / 11%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EU-based foundersEmployees and contractorsRegional operating companiesTechnology businessesCross-border investors
Watch out for
- Romania is not a simple 10% all-in system. Payroll contributions, CASS on some investment and other non-salary income, VAT and local taxes can be more important than the headline personal rate.
- The micro-company regime is not automatic. The company must satisfy conditions including the EUR 100,000 revenue limit, employee and ownership requirements, and related-company aggregation rules.
- The 2026 dividend increase and the higher securities and crypto rates materially change older Romania tax guides. Interim dividends distributed under 2025 financial statements retain the 10% rate under the transitional rule.
- Foreign founders and remote workers should check Romanian company management, permanent-establishment, CFC, treaty and exit-residence issues before treating Romania as a simple EU relocation.
Frequently asked questions
Is Romania a low-tax country?
Romania has low headline personal and corporate rates compared with many EU countries, but it is not a low-cost tax system in every situation. Payroll contributions, VAT, local property taxes, dividend tax and compliance costs still matter.
Does Romania have a wealth tax?
Romania does not currently levy a general annual net wealth tax. Owners can still owe local building, land and vehicle taxes, and property transfers can trigger separate tax.
What is Romania's main corporate-tax choice?
Ordinary companies generally pay 16% tax on taxable profit. Eligible Romanian micro-enterprises can instead pay 1% on their tax base under the 2026 rules, but the EUR 100,000 threshold and other eligibility tests are strict.