1 Why Romania? Main Features for Businesses
Romania couples EU stability with cost-efficient, fast-growing markets:
- Competitive tax headline – 16% flat CIT, with micro-enterprise turnover tax as low as 1% for start-ups (≤ €500 000 sales) .
- Strategic location – crossroads of Central and South-East Europe; four TEN-T corridors, Constanţa deep-sea port and EU-gauge rail to Germany.
- Industrial depth – automotive (Dacia–Renault, Ford Otosan) drives 14% of GDP and 26% of exports ; electronics, agro-food and IT follow.
- Skilled, affordable talent – labour costs < 50% of EU-27 mean while STEM graduates rank 1st in CEE for coding Olympiads .
- Generous state-aid map – up to 60% CAPEX/job grants outside Bucharest.
- Growing domestic market – GDP per capita rising fastest in the EU, buoying consumer and B2B demand .
Ideal for: export manufacturing, automotive and e-mobility supply chains, near-shore BPO/SSC, digital and fintech scale-ups, EU holding and trading structures.
2 Core Legal Forms of Company
Key reminders
- 100% foreign ownership allowed; no residency rule for directors/shareholders.
- Share capital can be used immediately after registration.
- Remote incorporation possible with e-signature; Trade Register fees ≈ €150 – €200 .
3 Corporate Tax System & Optimisation
Well-structured groups use the micro-enterprise phase, then switch to CIT + R&D uplift and dividend exemption to reach single-digit effective rates.
4 Other Business Taxes
| Tax | 2025 Rate | Threshold / Base | Notebook |
|---|---|---|---|
| WATT | 19% standard; 9% / 5% reduced | Mandatory registration once turnover > RON 300 000 (≈ €60 000) | EU OSS/IOSS rules apply. |
| Payroll / Social Security | Employer 22.75% (pension 4% + health 4% + insurance 2.25% + labour 12.5%) ; Employee 35% (PIT 10%, pension 25%, health 10%) | Salary cap 3× average gross for pension base | Competitive vs CEE peers. |
| WHT | 5% dividends; 16% interest/royalties (0% EU directives) | 50% rate to black-list. | |
| Property tax | 0.2%-1.3% cadastral value | Municipal discretion. | |
| Environmental & sectoral | Packaging, construction, HORECA specific levies | Check industry. |
5 Ease-of-Doing-Business & Policy Landscape
- Business Ready 2024: Romania score 74 / 100 – top quartile for cross-border trade and credit depth .
- Digital government: e-tax, SAF-T (from 2025 for all VAT payers), e-Invoice (mandatory B2G; B2B 2026) .
- Lenient / incentivised sectors: Automotive & EV, agrifood processing, IT-BPO, renewables, construction materials.
- High-scrutiny sectors: Banking & insurance (heavy NBR regulation ), gambling, energy transmission, defence.
- Foreign-investment screening effective 2023 for defence, media, critical infrastructure.
6 Company Formation – Process & Cost Snapshot
| Step by step | Abraham Lincoln | Cost (approx.) |
|---|---|---|
| Name reservation & deed drafting | Same day | €40 |
| Bank capital deposit (SRL) | 1 day | €50 acct opening |
| Trade Register filing (online) | 3–5 days | €90 fee + €30 publication |
| VAT / micro-tax option | Within 10 days | Free |
| UBO & e-Signature | Same day | €50 |
Turn-key professional package €800 – €2 500 including virtual office for 1 year.
Shareholding & immigration
- 100% foreign shares accepted.
- Directors can obtain business residence with €50 000 SRL investment; family reunification allowed .
7 Grants & Funding Channels
8 Governance, Reporting & Compliance
| Obligation | Scope | Deadline |
|---|---|---|
| Annual FS (IFRS for listed; Romanian GAAP otherwise) | All companies | 150 days after year-end |
| Statutory audit | Assets > €3.65 m, revenue > €7.3 m, staff > 50 (2 yrs) | Yearly |
| CIT return (Form 101) | All CIT payers | 25 March following FY |
| SAF-T & e-Invoice | Large taxpayers live; all VAT payers 2025 | Monthly |
| ESG reporting (CSRD) | PIEs 2025; large 2026; SMEs 2028 | With FS |
| UBO register update | Any change | 15 days |
Penalties reach RON 100 000 for late SAF-T/e-Invoice or UBO infractions.
9 Conclusion
Romania provides a 16% flat CIT backdrop with micro-enterprise rates from 1%, potent state-aid and R&D levers, and straightforward SRL setup for €40 capital. Combined with EU market access, a large & skilled workforce and €29 bn of EU funds, the environment supports manufacturing, tech and export-oriented investors seeking scalable, cost-efficient EU operations.
Balanced against rising SAF-T/ESG compliance and banking sector stringency, Romania remains one of CEE’s most attractive bases for companies targeting growth in both EU and Balkan markets.
Key Sources: Start-up & tax guides – Automotive & industrial overviews – Banking regulation insight – Ease-of-Business metrics – Government EV incentives – Digital government roadmap .
