SOLE PROPRIETORSHIP (PFA) IN ROMANIA IN 2026 — FEATURES, TAXES, AND IMPORTANT KNOWLEDGE
Many entrepreneurs search online for "Sole Proprietorship Registration in Romania" and believe that the Romanian PFA (Persoana Fizica Autorizata — Authorized Natural Person) is a complete analogue of the traditional sole proprietorship in the CIS countries.
In practice, this is a major misconception. A PFA in Romania is a separate form of business activity with its own specific features, restrictions, and tax system. Therefore, before registering, it is important to understand what taxes and contributions a PFA pays, how CAS and CASS are calculated, and in which cases it may be more advantageous to open an SRL instead of a PFA. In this article, we will review the key questions about PFA taxation in Romania in 2026.
WHAT TAXES DOES A PFA PAY IN ROMANIA?
A PFA in Romania pays income tax at a fixed rate of 10% of net profit.
There are two tax regimes for PFAs:
- Real system (sistem real);
- Income standard (norma de venit).
The main difference between them is how the taxable base is calculated.
1. Taxation under the real system (Sistem Real)
When operating under the real system, income tax of 10% and the health insurance contribution (CASS) of 10% are calculated on net income, meaning the difference between income and confirmed expenses.
Calculation formula: ProfitNet = Venituri - Cheltuieli
This option is considered the most accurate because it takes into account the entrepreneur's actual expenses.
To apply this system, it is necessary to keep records of:
- income;
- expenses;
- supporting documents.
This option is usually suitable for those who have significant business expenses.
1.1. Taxation based on the income standard (Norma de venit)
In this case, the tax is calculated not on actual profit, but on a fixed income standard established by ANAF for a specific type of activity (CAEN).
Calculation formula: Impozit = Norma de venit x 10%
This regime is simpler from an administrative point of view because it does not require full accounting of expenses.
The income standard depends on:
- type of activity;
- region;
- adjustment coefficients.
1.2. Important change in 2026
If the PFA's income for 2025 exceeded EUR 25,000, the application of the income standard from 2026 becomes impossible, and the entrepreneur is required to switch to the real tax system.
The average annual BNR exchange rate for 2025 is 5.0415.
The limit is calculated as follows: 25000 x 5.0415 = approx. 126038 RON
This means that the threshold is approximately 126,038 RON of annual income.
PENSION CONTRIBUTIONS (CAS) IN 2026
For calculating CAS in 2026, the minimum gross salary is used: Salariul Minim Brut = 4050 RON
Pension contribution rate: CAS = 25%
1. When CAS is not paid
If the PFA's net income is below 12 minimum salaries: 12 x 4050 = 48600 RON
THEN THE CAS PENSION CONTRIBUTION IS NOT PAID!
1.1. Income from 12 to 24 minimum salaries
If income is in the range:
- from 48,600 RON;
- to 97,200 RON,
then CAS is: 48600 x 25% = 12150 RON
1.2. Income above 24 minimum salaries
If income exceeds 97,200 RON, then CAS is: 97200 x 25% = 24300 RON
HEALTH INSURANCE CONTRIBUTIONS (CASS) IN 2026
In 2026, the rules for calculating CASS have changed significantly.
CASS rate: CASS = 10%
1. If income is below 6 minimum salaries
The minimum threshold is: 6 x 4050 = 24300 RON
Even if income is below this amount, the entrepreneur is required to pay the minimum fixed CASS:
24300 x 10% = 2430 RON
1.1. If income exceeds 24,300 RON
For income above 24,300 RON, the contribution is calculated as 10% of the actual net income:
CASS = PROFIT NET x 10%
It is important to note that CASS is a deductible expense when calculating the taxable base.
1.2. Maximum CASS ceiling
The maximum base is limited to 72 minimum salaries: 72 x 4050 = 291600 RON
Maximum CASS amount: 291600 x 10% = 29160 RON
WHEN AND HOW TO PAY PFA TAXES?
PFA taxes and social contributions are paid once a year.
To do this, the following is submitted:
- Declaratia Unica (Single Declaration).
The deadline for filing the declaration and paying taxes for 2026 is May 25, 2027.
The declaration can be submitted and taxes can be paid online through the SPV system on the ANAF website.
AN ALTERNATIVE TO PFA IN ROMANIA — SRL UNDER THE SIMPLIFIED TAX SYSTEM
It is important to understand that for most non-residents of Romania, the classic PFA is often not the most convenient option in practice.
In addition, in some cases, opening and fully using a PFA as a non-resident of Romania can be quite difficult from a practical point of view.
That is why many entrepreneurs choose an alternative option — an SRL under the simplified tax system (microintreprindere).
This structure is currently used by many entrepreneurs who want to optimize their tax burden.
WHAT TAXES DOES A MICRO SRL PAY IN 2026?
For an SRL under the microtax regime, the following rates apply:
- 1% of gross turnover;
- turnover limit — EUR 100,000 per year.
The main difference from a PFA is that the tax is calculated not on profit, but on the company's total turnover.
Formula: Impozit = Cifra de Afaceri x 1%
1. Important condition for a micro SRL
For the 1% rate to apply, there is a mandatory condition:
The company must have at least one full-time employee (8 hours per day).
On average, the tax burden on the minimum salary of an employee is approximately EUR 350 per month.
In addition, accounting support is mandatory for an SRL.
The average cost of an accountant in Romania is approximately EUR 250 per month.
1.2. Why do many people choose an SRL?
Despite the additional costs for an employee and accountant, an SRL remains a popular option because:
- the tax burden is often lower than that of a PFA;
- it is easier to work with large clients;
- the company looks more credible to partners;
- the owner is not personally liable for the business's obligations;
- it is easier to scale the activity.
This is why today many entrepreneurs focused on long-term work in Romania and tax optimization use the micro SRL structure.
Conclusion
PFA taxation in Romania in 2026 has changed significantly, primarily regarding:
- new CAS thresholds;
- new CASS calculation rules;
- mandatory transition to the real system after exceeding the EUR 25,000 limit.
At the same time, for many entrepreneurs, an SRL under the microtax regime with a 1% tax on turnover becomes an alternative to the PFA.
Before registering a PFA or SRL, it is recommended to calculate the full tax burden in advance and consult an accountant, as Romanian tax legislation changes regularly.
Contact us for more detailed information about these services:
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