TAX CHANGES IN ROMANIA 2026: WHAT BUSINESSES NEED TO KNOW
Romania's tax system is entering a period of major transformation. The year 2026 brings a wave of legislative reforms that significantly alter business operating conditions, taxation rules, and financial reporting requirements. These changes affect large corporations as well as small enterprises, investors, and local authorities.
The reforms are not accidental. They stem from the fiscal package adopted in late 2025 and reflect three key objectives of the Romanian government: budget consolidation, improved tax collection, and alignment of national legislation with European standards. Understanding these changes becomes critically important for anyone doing business in Romania or planning investments in the Romanian economy.
THE 2026 FISCAL PACKAGE
At the heart of the transformation lies the so-called Package 2 of tax measures, which introduces fundamental changes to two foundational documents of the Romanian tax system—the Tax Code and the Tax Procedure Code. These changes are not cosmetic adjustments. We are talking about a systemic overhaul aimed at reducing the budget deficit and improving the efficiency of tax administration.
INVESTMENT INCOME UNDER HIGHER TAX
One of the most notable changes concerns the taxation of dividends. The rate has increased from 10% to 16%, and this increase applies equally to both individuals and legal entities. It is important to understand that the new rate applies to all income received starting January 1, 2026. For many investors and shareholders, this means the need to revise their income structure and tax planning.
In parallel, the government has strengthened the taxation of capital gains and cryptocurrency transactions. This is a logical step given the growing popularity of digital assets and the state's desire to control all forms of investment income. The rate increases in these categories reflect the overall trend toward expanding the tax base and increasing budget revenues.
LOCAL TAXES
The changes have also affected local taxation. The rules for taxing real estate—both buildings and land—as well as vehicles have been adjusted. These adjustments may lead to increased local tax obligations for property owners. Expanding the tax base at the local level serves a dual purpose: it not only replenishes local budgets but also ensures a fairer distribution of the tax burden among different categories of taxpayers.
STRENGTHENED CONTROL AND PENALTIES
Along with rate changes, stricter tax compliance requirements are being introduced. Penalty mechanisms for violating the new rules are becoming tougher. This means that companies need to pay special attention to complying with all formalities and deadlines. Errors or omissions that previously might have been overlooked or resulted in minimal consequences now threaten serious financial penalties.
TAX REGIME FOR MICRO-ENTERPRISES
For small businesses, 2026 brings important simplifications, though with certain nuances. The micro-enterprise taxation system is undergoing significant transformation.
SINGLE RATE INSTEAD OF MULTI-TIER
The 3% rate is being eliminated, and a single rate of 1% of gross turnover now applies for companies with annual turnover up to €100,000. This simplification makes the system more understandable and predictable. An entrepreneur knows exactly that as long as their turnover does not exceed the established threshold, they pay 1% regardless of the specifics of their activity.
Particularly significant is the removal of restrictions on types of activities. Starting January 2026, a micro-enterprise can engage in virtually any business while remaining under the simplified taxation scheme. This opens new opportunities for small entrepreneurship and removes previous barriers that forced some companies to choose between a favorable tax regime and their desired type of activity.
CONDITIONS FOR MAINTAINING STATUS: FOUR KEY REQUIREMENTS
However, the simplified regime is not available to everyone and not always. There are four conditions, non-compliance with which strips a company of its micro-enterprise status, and thus the right to the 1% rate.
The first condition concerns ownership structure. The direct participation of founders in various companies is checked. If the same founder owns a stake of more than 25% in a second or third enterprise, these companies lose their micro-enterprise status and switch to the standard corporate income tax of 16%. This rule is aimed at preventing abuse when one entrepreneur creates multiple formally independent micro-enterprises to minimize taxes.
The second condition is timely submission of financial reports. Missing the deadline automatically strips the company of its preferential status. The legislator views this not as punishment for a technical error but as a tax compliance measure. A company that cannot provide reports on time raises questions about the transparency of its operations.
The third condition applies to related enterprises. If a micro-enterprise has special relationships with other Romanian legal entities in accordance with Law No. 346/2004, the €100,000 income threshold is checked not individually but based on the aggregate income of all related companies. This is another mechanism against business fragmentation.
The fourth condition is having at least one full-time employee (8 hours per day). This requirement ensures that the micro-enterprise is actually conducting real activities and not just existing on paper.
GRADUAL REDUCTION OF ADDITIONAL TAX BURDEN
In parallel with the micro-enterprise reform, the government is reducing and planning to eliminate certain additional taxes. The minimum turnover tax (IMCA) is being reduced in 2026 from 1% to 0.5%, with its complete abolition planned for 2027. Also by 2027, the tax on special facilities and the additional turnover tax in the oil and gas sector will be abolished.
These measures pursue the goal of simplifying the tax regime and stimulating investment. Reducing the number of taxes and fees makes doing business easier, makes the tax system more transparent, and reduces the administrative burden for both companies and tax authorities.
NEW REQUIREMENTS FOR CORPORATE STRUCTURE AND REPORTING
The year 2026 introduces additional mandatory requirements that apply to all commercial companies, regardless of size.
MINIMUM CAPITAL AND BANK ACCOUNTS
For limited liability companies (SRL), a minimum share capital of 500 lei is established upon new registration. This is a modest amount that does not create a significant barrier to entry into business but symbolizes the seriousness of the founders' intentions.
More important is the requirement to have a payment account in a Romanian bank. A company is obligated to open such an account and maintain it throughout its entire period of operation. This requirement enhances the transparency of financial transactions and facilitates tax control. All significant payments must go through the banking system, which creates a traceable trail and makes conducting shadow activities more difficult.
EXPANSION OF GROUNDS FOR DECLARING A COMPANY FISCALLY INACTIVE
Requirements for financial reporting have been strengthened, and violations of reporting obligations can have serious consequences. The list of grounds on which a company can be declared fiscally inactive has been expanded. Such a declaration entails not only tax consequences but also legal and operational consequences—from restrictions on conducting activities to problems with counterparties and banks.
These measures are aimed at increasing the overall transparency of the business environment. They protect honest market participants, creditors, and state interests. Companies that operate openly and comply with all requirements gain the advantage of trust from partners and regulators.
PRACTICAL IMPLICATIONS FOR BUSINESS
All the described changes create a new tax reality to which businesses must adapt. The increase in rates on dividends and investment income requires a revision of profit distribution strategies. Business owners who previously received dividends at 10% now face a 60% increase in tax burden. This may make alternative forms of compensation or reinvesting profits in company development more attractive.
For micro-enterprises, the simplification of the system is undoubtedly a positive step, but it requires careful compliance with all conditions for maintaining status. Losing the right to the 1% rate and switching to the 16% corporate income tax can radically change the economics of a small business. Therefore, it is especially important to monitor ownership structure, timeliness of reporting, and the presence of employees.
Increased reporting requirements and tougher penalties mean that companies need to invest in quality accounting support and internal control processes. Errors cost more, and transparency standards are becoming higher.
If you want to analyze your situation and receive recommendations on applying the new rules—LARIN TRADE CONSULTING will be happy to help you. We specialize in company registration, accounting support, and legal support for businesses in Romania—from opening a company to obtaining licenses and logistics.
Contact us, get a personalized consultation:
Tel: +40 733 255 999 +40 724 282 227 (Telegram / WhatsApp)
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