Romania has recently introduced fiscal measures aimed at encouraging investment in research and development (R&D). These initiatives form part of a broader economic stimulus package adopted through Emergency Ordinance No. 8/2026, which introduces fiscal and financial measures intended to support business investment and economic growth.
By improving the tax treatment of innovation-related expenses, Romanian authorities aim to stimulate technological development, strengthen business competitiveness, and encourage companies to expand research activities locally.
Who Can Benefit
R&D incentives apply to companies subject to corporate income tax that carry out eligible research and development activities under the Romanian Fiscal Code (Law No. 227/2015)
Businesses that may benefit include:
- Technology and software development companies
- Manufacturing businesses developing new products or production processes
- Pharmaceutical and biotechnology companies
- Innovation-driven startups and research centers
- Multinational companies conducting R&D activities in Romania.
These measures aim to support both domestic companies and foreign investors operating in innovation-intensive industries.
Key Fiscal Incentives
Romanian tax legislation allows companies performing R&D activities to benefit from additional deductions for eligible research expenses, reducing the effective corporate income tax burden.
In practice, companies may deduct an additional 50% of eligible R&D expenses when calculating their taxable profit. For example, if a company invests in research activities, it can deduct not only the actual costs incurred but also an additional percentage of those costs, effectively lowering the amount of corporate income tax payable.
Eligible R&D expenses typically include:
- Salaries of employees involved in research activities
- Materials and consumables used in testing and experimentation
- Prototype development and product testing
- Specialized equipment or software used in research projects.
Companies may also benefit from accelerated depreciation for equipment used in research activities, allowing them to recover investment costs more quickly for tax purposes and improve cash flow.
Recent fiscal measures further strengthen this framework and introduce the possibility of additional incentives, including tax credits for certain R&D investments. Together, these mechanisms reduce the overall cost of innovation and encourage companies to invest in new technologies, products, and processes.
How Eurofast Can Help
Applying R&D tax incentives requires careful evaluation of eligible activities and proper documentation. Eurofast assists businesses by:
- Assessing whether projects qualify as R&D under Romanian tax legislation
- Identifying eligible expenses that may benefit from tax incentives
- Supporting compliance and documentation requirements
- Advising on tax-efficient innovation and investment strategies.
Our team can support you throughout the process, from assessing eligibility for available incentives to ensuring full compliance with Romanian regulations.
For more information, contact us at [email protected]