How dividend tax works in Romania
Romanian companies generally withhold dividend tax when they distribute dividends. For dividends distributed from 1 January 2026, the standard domestic rate is 16% of the gross dividend. The 2025 interim-dividend rule preserves a 10% rate for qualifying distributions made under 2025 interim financial statements.
An individual shareholder receives the dividend after withholding, but may also owe CASS if dividends and other relevant non-salary income reach the statutory annual thresholds. That health contribution is separate from the dividend withholding tax and depends on the individual's complete income picture.
Dividends paid to another company can qualify for an exemption where the statutory participation conditions are met, commonly including a minimum 10% holding for at least one uninterrupted year. EU Parent-Subsidiary rules and tax treaties can also affect cross-border withholding.
Tax rates at a glance
- Dividends distributed from 2026
- 16%Standard rate
- 2025 interim dividends
- 10%
- Individual CASS
- 10%
- Corporate participation exemption
- 0%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Company shareholdersFoundersHolding companiesCross-border groupsPortfolio investors
Watch out for
- Do not use the former 8% or 10% general dividend rate for 2026 distributions without checking the transitional rule. Law 141/2025 moves the standard rate to 16% from 1 January 2026.
- The combined company-and-shareholder burden is not 16% alone. A standard company paying 16% profit tax and then 16% dividend tax has a simple combined rate of about 29.44% before any CASS or special relief.
- Romanian individual shareholders should aggregate dividends with other relevant non-salary income when testing CASS. The threshold calculation is separate from the company's withholding obligation.
- Treaty rates, EU directives, beneficial ownership and the participation exemption can change cross-border results, but they do not apply merely because a recipient has a foreign bank account.
Frequently asked questions
What is Romania's dividend tax in 2026?
The standard dividend withholding rate is 16% for dividends distributed from 1 January 2026. Qualifying 2025 interim dividends remain under the 10% transitional rule.
Does Romania also charge social contributions on dividends?
An individual can owe 10% CASS when dividends and other relevant non-salary income exceed the statutory thresholds. It is not an automatic second 10% charge on every dividend.
Are dividends between Romanian companies exempt?
They can be exempt when the participation and holding-period conditions are satisfied. The exact domestic, EU and treaty requirements should be checked for the company chain.