Romania is entering 2026 under the pressure of its most ambitious fiscal consolidation plan in decades. Following warnings from the European Commission and the risk of losing EU funds, the government has rolled out Pachetul 2 de austeritate, a sweeping set of measures designed to cut the budget deficit from 9% of GDP to below 6%. While these reforms aim to restore fiscal stability, they will significantly reshape the tax landscape for companies and individuals.
Key Changes in Corporate Rules
The new law introduces stricter regulations on share capital and corporate governance:
- Mandatory share capital increases: Newly incorporated SRLs must have at least 500 lei, while existing companies with turnover above 400,000 lei must raise capital to 5,000 lei within two years.
- Restrictions on share transfers: Any transfer of ownership becomes opposable to the tax authority under special conditions, ensuring fiscal claims are protected.
- Limits on intra-group loans and dividend distributions: Designed to prevent asset stripping and safeguard creditor rights.
Failure to comply may trigger dissolution procedures initiated by the Trade Registry, making early planning essential.
Taxation: Higher Burdens Across the Board
Several major tax hikes will take effect:
- Dividend tax: Increased from 10% to 16% starting January 2026, impacting both individuals and legal entities.
- VAT adjustments: Standard rate rises from 19% to 21%, while reduced rates consolidate at 11%, affecting most goods and services.
- Investment income: Gains from securities and crypto transactions will be taxed at 16%, up from previous preferential rates.
- Property tax reform: Local taxes will be recalculated based on market value, potentially doubling bills in urban areas.
- Excise duties: Alcohol, tobacco, and fuel will see further increases, adding pressure on consumer prices.
Other Structural Measures
- Freeze on public wages and pensions until end-2026.
- Reduction of tax exemptions and deductions, including fewer scutiri and stricter e-Property rules.
- Luxury tax hike: From 0.3% to 0.9% for high-value assets.
- Payment rescheduling: New thresholds for restructuring obligations (up to 100,000 lei for individuals and 400,000 lei for companies).
What Should Businesses Do?
- Review capital structure and prepare for mandatory increases.
- Accelerate dividend distributions before year-end 2025 to benefit from the 10% rate.
- Update pricing and contracts to reflect VAT changes.
- Plan liquidity and tax optimization strategies with professional guidance.
2026 will be a turning point for Romania’s fiscal environment. Companies that act early—by aligning governance, tax planning, and compliance—will not only avoid penalties but also gain a competitive edge in a more regulated market.
