Microenterprise tax in Romania is still one of the most attractive routes for small businesses entering the market, but recent legislative changes have tightened access and increased the importance of correct planning. For foreign investors setting up a Romanian SRL, the regime can mean low headline taxation and simpler forecasting—but only if your activity, turnover trajectory, and margin fit the rules.
What is the microenterprise tax regime in Romania?
The Romanian microenterprise regime taxes revenue (turnover) rather than profit, and it is generally calculated and paid quarterly. This makes it appealing for high-margin business models (for example, many service or digital businesses), but potentially costly for low-margin trading or production models because the tax applies even when profit is low.
Recent changes (2025–2026) investors should know
1) Lower turnover thresholds
The eligibility ceiling decreased to EUR 250,000 for 2025, and is scheduled to drop further to EUR 100,000 from 1 January 2026. This is a major change for fast-growing startups and foreign groups planning to scale quickly in Romania.
2) Consulting/management limitation removed (from 2025)
Starting in 2025, the previous rule limiting consulting/management revenues as a percentage of total revenues was removed, potentially allowing more service-oriented companies to qualify (if all other conditions are met).
3) Switching to corporate income tax (CIT) if you exceed the ceiling
If the company exceeds the microenterprise revenue threshold during the year, it switches to 16% corporate income tax starting with the quarter in which the threshold is exceeded. This “mid-year switch” is one of the most common planning and cash-flow risks for foreign investors.
4) Rates depend on revenue/activity (1% vs 3%)
Romania applies different microenterprise rates (commonly discussed as 1% versus 3%), with the higher rate applying depending on revenue level and/or specific activity codes for certain sectors. Because the rules can be activity-sensitive, aligning your actual activity with the correct CAEN/NACE codes is essential.
Microenterprise eligibility (high-level checklist)
A company generally needs to meet several conditions, including staying under the relevant revenue ceiling, typically having at least one employee (with some exceptions), having private shareholders, and not being in dissolution/liquidation. There is also a key ownership restriction: a shareholder holding more than 25% can generally have only one company applying the microenterprise regime. Certain sectors are excluded (e.g., banking, insurance/capital markets, gambling, and oil & gas exploration/production).
Advantages for foreign investors opening a company in Romania
•Lower effective tax for high-margin models: turnover taxation can be more efficient than 16% profit tax when margins are strong.
• Easier budgeting: revenue-based tax is often simpler to forecast in early-stage operations.
• Broader access for services (from 2025): removing the consulting/management limitation can help many service providers qualify.
• Potential structuring benefits: certain dividend income may be treated favorably in the microenterprise tax base under conditions, which can matter in group structures.
Disadvantages and risks (what can go wrong)
•Bad fit for low-margin businesses: paying tax on turnover can be punishing when margins are thin.
• Growth penalty (“cliff-edge”): exceeding the threshold triggers a CIT switch from that quarter, often unexpectedly if revenue accelerates mid-year.
Rate and eligibility complexity: the applicable rate and eligibility may depend on CAEN/NACE activity classification and other criteria.
• Ongoing compliance discipline needed: to stay eligible, companies must monitor turnover and maintain required conditions (including employment and ownership rules).
Practical tips for foreign investors (SRL setup strategy)
Many foreign investors start with the microenterprise regime for the market-entry phase and plan in advance for a transition to CIT as turnover rises. A sensible approach is to model both scenarios—(a) turnover tax at the applicable micro rate and (b) 16% profit tax—using realistic assumptions for margin, payroll, and growth. Because the threshold can be exceeded mid-year, quarterly monitoring is critical (especially for fast-growing businesses).
Very useful article. thank you
Microenterprise regime is very advantageous for service business.