Why Romania can be a smart tax planning strategy in Covid-19 times


It is an inevitable fact that a wide range of companies will face difficult financial times as a result of the current crisis. This is where we, Eurofast, can step in with tailor-made solutions. Our financial advisors may just have the perfect solutions which can act as tools to save money.

What is the role of Romania in this scenario? For quite some time, specialists have touted it as a new heaven for companies active in the financial and fiscal field. Recent governments have allowed for tax relaxation and created tools for investors, mainly foreigners, which can be useful to anyone.

Where are the benefits?

A Romanian company can be used for international tax planning purposes mainly due to:

  • The tax incentives and extensive Double Tax Treaties (DTT) Romania has secured with other countries;
  • The low corporate tax rate of 16%, one of the lowest in the E.U.;
  • Micro companies – special tax regime – (companies with turnover less than 1 mil) are benefiting from a very favorable tax regime, 3% tax on total turnover if the company has no employees, 1% tax for a company with employees (at least 1);
  • The ability to pull profits from the subsidiary’s country with no or very low withholding tax, provided a DTT is in existence;
  • The fact that it can benefit from the application of the provisions of the EU Parent-Subsidiary Directive, the EU Interest and Royalties Directive, and the EU Merger Directive;
  • Local tax on dividends is 5%.

As a result of the above, the incorporation of a micro company in Romania has rightly become= the strategy of smart managers. Adding to the advantages presented above, it should be noted the opening of a bank account in Romania is an easy process. Worth mentioning is also the active and profitable real estate market with SPVs especially created for investments.

Find your reliable tax advisors at Eurofast and entrust us with your virus-resistant tax planning in Romania!

For further information details please contact Stefania Costea at stefania.costea@eurofast.eu .

Eurofast is a regional business advisory organisation employing local advisers in over 23 cities in South East Europe & Middle East (SEEME). The Organisation is uniquely positioned as one stop shop for investors and companies looking for professional services in South East Europe & Middle East.

Stefania Costea