Taxes for a company in Romania in 2026: the 1% rate and the micro-enterprise regime
One of the main reasons foreigners choose Romania for business and a residence permit is its tax system.
📌 A 1% rate for micro-enterprises 📌 Access to the European banking system 📌 The ability to work legally in the EU 📌 A link between business, a residence permit and eventual citizenship
But it is precisely Romanian taxes that are surrounded by the most outdated information today.
The internet still talks about: — a 3% tax; — a threshold of 500 thousand euros; — 19% VAT; — the old micro-enterprise rules.
In 2025–2026, Romania’s tax system changed, and many old articles are no longer accurate.
In this article we will look at: — which taxes an SRL company in Romania actually pays; — how the 1% rate works; — what changed in 2026; — and where companies most often lose the preferential regime.
This material is based on the practice of Alliance and Armonia.
Why the tax system matters when relocating
When a person opens a business in the EU, they are choosing more than a country to live in.
They are choosing: — the tax burden; — the banking system; — the cost of doing business; — the rules for running a company; — the ability to scale.
And this is where Romania remains one of the most attractive jurisdictions in the European Union for small business.
📌 The 1% rate is not advertising. It is a real tax regime established by law.
But it is important to understand: the preferential regime only works if certain conditions are met.
What changed in taxes in 2025–2026
In recent years the rules have been substantially updated.
Turnover tax
Previously there were different rates: — 1%; — 3%; — different turnover limits.
From 2026 the system has been simplified:
✅ a single 1% rate applies; ✅ only for companies with turnover of up to €100,000 a year; ❌ the 3% rate has been abolished.
If a company exceeds the limit, it moves to the standard tax of about 16%.
VAT
Since August 2025:
📌 the standard VAT rate in Romania is 21%; 📌 the reduced rate is 11% for certain categories of goods and services.
The old rates of 19%, 9% and 5%, which are still mentioned online, no longer apply.
Dividend tax
From 2026:
📌 dividend tax is 16%.
This applies to distributing the company’s profit to the owner.
What a micro-enterprise is
It is important to understand:
A micro-enterprise is not a separate type of company.
It is a tax status that an SRL can obtain if it meets the conditions.
It is this status that allows the company to pay:
✅ 1% of the company’s turnover.
Note: ❗ the tax is calculated on turnover, not on profit.
For many small companies this is more advantageous than the standard corporate tax.
What conditions are required for the 1% rate
The 1% rate is not an automatic right.
To keep the preferential rate, the company must meet a number of requirements.
1. Turnover of up to €100,000
If the limit is exceeded, the company automatically moves to the standard tax.
2. Having an employee
This is one of the key conditions.
📌 The company must have at least one officially employed staff member.
In practice, the owner often hires themselves into the company.
3. Timely reporting
If the company: — does not file reports; — misses deadlines; — does not conduct its business properly;
the tax authority may: ❌ strip the company of the preferential regime; ❌ declare the company inactive.
4. Bank account
The company must have an operating bank account in Romania.
This is no longer a formality but an important part of the tax and banking structure.
What other taxes the company pays
A mistake many entrepreneurs make is thinking that “the tax in Romania is only 1%.”
In practice, the structure is broader.
VAT — 21%
The standard rate for most transactions.
Payroll taxes
Since an employee is required, the following arise: — social contributions; — payroll taxes; — mandatory employer payments.
Dividend tax — 16%
When profit is distributed to the owner.
Where companies most often lose the 1% rate
In practice, the main mistakes look like this:
❌ no official employee; ❌ the turnover limit is exceeded; ❌ reporting is overdue; ❌ the business is built on old rules; ❌ the structure of the companies is set up incorrectly.
That is why many companies unexpectedly move from 1% to 16%.
Why it is important to set up the tax system correctly from the start
A tax mistake rarely stays small.
It accumulates: — fines; — reassessments; — loss of preferential rates; — problems with the bank; — risks for the residence permit and residency.
❗ Fixing things is almost always more expensive than building the system correctly from the outset.
What to do if your taxes are already “tangled”
This is one of the most common situations.
Alliance is regularly approached by companies: — that have lost micro-enterprise status; — with reporting problems; — with an unclear tax structure; — with questions about dividends and employees; — after buying a ready-made company.
In such cases we carry out: ✔️ a company audit; ✔️ a tax status check; ✔️ a risk analysis; ✔️ restoration of the structure; ✔️ correction of the accounting records.
📌 A company audit at Alliance costs €300.
How Alliance helps
Alliance builds a business’s tax structure comprehensively.
We: ✔️ register SRLs; ✔️ help keep micro-enterprise status; ✔️ support accounting and structure; ✔️ help with banking compliance; ✔️ arrange tax residency; ✔️ coordinate business, residence permit and the tax model in one system.
📌 Tax residency at Alliance costs €1,000.
Alliance’s transparent price list
📌 SRL registration — €1,300 📌 Residence permit — €1,300 📌 Tax residency — €1,000 📌 Company audit — €300 📌 One-hour review of your situation — up to €100 📌 Real estate transaction support — 3% of the property value
Key takeaway
Romania really does remain one of the most tax-efficient jurisdictions in the EU for small business.
But the 1% rate only works when: ✔️ the structure is set up correctly; ✔️ the conditions are met; ✔️ the company is run under the current 2026 rules.
That is why competent support is not an expense but protection against costly mistakes.
📩 If you want to understand what the tax burden will look like in your particular situation, contact Alliance.
We will review your business model, show you the real tax structure and help set up the system so that the preferential rates work not only on paper but in reality.