Income taxes

Last reviewed 26 Jan 2026

Tax rate

The standard income tax rate is 10%. However, several exceptions apply, such as:

Dividend tax rate: 16% starting 2026 (10% until 31 December 2025).

Income from securities (with exceptions for transfers carried out through authorized intermediaries) and virtual currency transfers: 16% starting 2026 (10% until 31 December 2025).

Income consisting of goods and services received for personal use from a legal entity, as well as amounts paid above market value for goods or services provided by a legal entity, is classified as income from other sources and taxed at 16% (10% until 31 December 2025).

Income for which the source cannot be identified is subject to a 70% income tax rate, applied to the taxable base determined by the authorities.

Special tax rates apply to certain types of income.  (see Special tax rates section).

Special tax rates

Generally, net capital gains are subject to 16% income tax (10% until 31 December 2025) .

By way of exception, income from the transfer of securities, when transferred through intermediaries defined by law, is determined by applying the following rates:

3% (1% until 31 December 2025) on gains from securities held for more than 365 days.

6% (3% until 31 December 2025) on gains from securities held for less than 365 days.

Income from the transfer of immovable property is taxed based on the transaction value:

3% for constructions of any kind and their related land, as well as land of any kind without constructions, held for up to three years inclusive.

1% for the above-mentioned buildings, held for more than three years.

The tax rate for income from gambling activities depends on the income level, starting at 4% (3% until 31 December 2025) and going up to 40% for any amount exceeding RON 66,750.

Tax liability

Unlimited

On global income of persons resident in Romania for tax purposes. An individual is classified as a resident if they meet any of the following criteria:

place of residence in Romania

primary interests or vital connections are in Romania

presence in Romania for over 183 days within any 12-month consecutive period.

Foreign individuals with their primary interests in Romania or who spend more than 183 days within any consecutive 12-month period in Romania are liable to pay taxes in Romania on their global income.

Limited

For non-resident individuals, on their Romanian source income.

Tax assessment period

Calendar year

Income categories

Income from:

Employment

Self-employment (no personal allowance)

Transfer of rights to use assets

Pensions exceeding RON 3.000 (approx. EUR 600).

Agriculture, forestry, and fish farming

Prizes and gambling activities

Investments

Real estate transactions

Intellectual property

Other (including income earned from the transfer of cryptocurrencies)

Accounting

Generally, cash-based accounting as provided in Accounting Act. Freelancers may also opt to apply the double-entry bookkeeping system.

Loss set-offs

Losses may be offset only within the same income category and only for specific types of income.

Loss carryback

Not possible

Loss carryforward

Annual tax losses from independent activities, intellectual property rights, and agricultural/forestry/fishery activities, determined under the real system, may be carried forward for five years and offset up to 70% of the net income obtained from the same source in each year.

Operating expenses

Business expenses.

Tax allowable expenses

Expenses incurred to procure, secure or maintain business income.

Lump sum option

For certain types of self-employment commercial activities, income tax may be calculated based on an annual lump-sum income, as communicated annually by the local tax authorities.

Lump-sum deductions from taxable income:

40% of income from intellectual property rights

20% of rental income, with certain exceptions

30% of income from the short-term rental of rooms situated in privately owned residential premises, as well as income derived from the provision of accommodation services.

Motor vehicles

Car-related expenses are deductible only for income derived from independent activities taxed under the real system.

Depreciation period: 4–6 years. Monthly depreciation for passenger cars is capped at RON 1,500.

Expenses (including non-deductible VAT) incurred for vehicles weighing up to 3,500 kg and with no more than nine seats, used exclusively for business purposes or for specific activities (e.g., emergency services, taxi services, driving schools) are fully deductible. Otherwise, such expenses are only 50% deductible.

Cars with acquisition prices exceeding RON 375,000 (approx. EUR 75,000) are subject to a special 0.9% tax for five years from acquisition ( 0,3% until 31 December 2025), applied to the value exceeding the non-taxable threshold of RON 375,000.

Social insurance

Mandatory social insurance contributions are fully deductible. Certain optional contributions are deductible up to specific limits (e.g., up to EUR 400/year per employee for voluntary pension funds and up to EUR 400/year for voluntary health insurance).

Withholding tax

Generally taxed at 10%., with certain exceptions (e.g., 16% for dividends, 6%/3% for income from securities transferred through intermediaries).

Interest

Generally taxed at 10%. For foreign-resident individuals, the domestic rate may be reduced under a Double Tax Treaty (DTT).

Royalties

Generally taxed at 10%. For foreign-resident individuals, the domestic rate may be reduced under a Double Tax Treaty (DTT).

Dividends

Generally taxed at 16%, starting 2026. For foreign-resident individuals, the domestic rate may be reduced under a Double Tax Treaty (DTT).