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Setting up a company in Romania?

Find out how to do it compliantly:

EU framework

16% corporation tax

1% micro-enterprise regime

100% foreign ownership possible

You can reduce your tax burden legally. We will be happy to advise you in detail and offer you a free initial consultation.

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Pros and cons of setting up a company abroad

If you relocate your residence:

Once tax residence is established, Romania taxes individuals on their worldwide income
Dividends are taxed separately and, above certain thresholds, can trigger additional health insurance contributions.
Withholding tax on dividends rises to 16%

Without emigrating:

If you manage the Romanian SRL from your home country, your local tax authority may assume the place of effective management and tax the profits there
If you hold more than 50% and the activity is classified as passive or lacking substance, CFC rules in your home country may attribute the Romanian profits to you directly
The Romanian micro-enterprise regime does not protect against foreign anti-avoidance rules
No local managing director is strictly required

What makes Romania attractive as a business location?

Romania is an EU Member State in south-eastern Europe with around 19 million inhabitants and its own currency, the Romanian Leu (RON). 100% foreign ownership is permitted. It is often used as a cost-efficient EU base, particularly by entrepreneurs who want EU credibility combined with moderate operating costs.

From a tax perspective, the standard corporation tax rate will remain 16% on profits in 2026. Small operating companies may, under certain conditions, use the micro-enterprise regime with 1% tax on turnover. From 1 January 2026, the turnover threshold for this will be reduced to €100,000. In addition, a minimum turnover tax of 0.5% may apply to certain larger taxpayers.

Dividend distributions will be subject to 16% withholding tax from 2026, for both domestic and foreign shareholders, unless reduced by double tax treaties or EU directives. Interest and royalty payments to foreign recipients are also generally subject to 16% withholding tax, subject to treaty benefits.

VAT is 21% (standard rate) or 11% (reduced rate). The registration threshold is RON 395,000 (approx. €77,600).

The most common legal form is the SRL, comparable to a limited company. From 1 January 2026, the minimum share capital is, in practice, RON 500 (approx. €100), increasing to RON 5,000 (approx. €1,000) after certain turnover thresholds are exceeded. Incorporation typically takes one to two weeks, depending on document preparation and bank account opening. A local managing director is not mandatory; however, a Romanian business address and full UBO disclosure are required.

Romania can work well as a genuine operational EU structure. It is not a zero-tax location. Without sufficient substance and a clear management set-up, foreign tax authorities may challenge the structure on the basis of effective management or CFC rules.

Contact us for an individual analysis and possible alternative structuring proposals.

FAQs

Is it easy to obtain a VAT number?

Yes, provided the documents are complete and credible. However, follow-up questions should be expected.

Is a local managing director required?

As a rule, not for an SRL. Foreign shareholders can also act as directors, provided all formal requirements are met.

Are there many banking options?

There are several banks with EU connectivity. However, onboarding is often highly due-diligence-heavy for non-resident beneficial owners.

Is remote incorporation possible?

Yes. Incorporation can be completed remotely by using powers of attorney and proper documentation.

How long does incorporation take?

Usually 1–2 weeks. Registration with the Trade Register can be very fast if the application is complete.

Which locations worldwide are best suited to paying as little tax as possible?

	Tax Burden	Banking	Reputation	Bureaucracy	Legal Security	Costs
USA	21-0%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 1,900
Singapore	0%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 2,950
Hong Kong	0%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 1,900
Cyprus	15%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 1,900
Malta	5%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 2,500
Ireland	12,5%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 1,950
Trust	0%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 4,900
England	25-19%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 1,000

Tax compliance in your country of residence

Your country of residence may impose tax and reporting obligations for foreign business activities and dividend income— in certain cases even if profits are not distributed.

Depending on your personal situation, a suitable holding structure may be required to comply with tax rules and avoid unnecessary tax risks.

To determine which jurisdiction and structure best meet your requirements, please use the contact form and describe your plans in as much detail as possible.

Our advisers will be glad to review your case and advise you accordingly.

1.

Analyse your needs

We assess your situation to define goals, risk tolerance, tax exposure and asset-protection priorities.

2.

Carry out a location analysis

We compare potential jurisdictions based on tax law, banking access, compliance requirements and your country of residence.

3.

Incorporate the company and, if required, establish a foundation

Open accounts and custody accounts and, if required, implement asset management