Romania has introduced comprehensive tax reforms and investment incentives through Government Emergency Ordinance No. 8/2026, featuring a 10% R&D tax credit, 65% first-year depreciation for new equipment, and state aid schemes for strategic projects exceeding RON 1 billion, with most measures taking effect from 1 March 2026.
The Romanian government published Government Emergency Ordinance (GEO) No. 8/2026 in the Official Gazette on 25 February 2026, introducing sweeping fiscal reforms designed to stimulate industrial development, attract strategic investments, and modernise the country’s tax framework. Most provisions take effect from 1 March 2026.
Corporate tax changes and R&D incentives
The ordinance introduces a 10% tax credit for eligible research and development expenses, applicable against corporate income tax or minimum turnover tax. Companies can carry forward unused credits for up to four fiscal years for compensation or refund.
To encourage capital investment in 2026, the government has introduced super-accelerated depreciation for new technological equipment, tools, and installations. Taxpayers can deduct up to 65% of an asset’s value in its first year of operation. Additionally, companies seeking to list on regulated markets or multilateral trading systems can claim a 50% additional deduction for related expenses.
The micro-enterprise regime now applies to businesses with annual revenue below EUR 100,000, provided they maintain at least one employee. The ordinance clarifies that this employment requirement remains satisfied during sick leave periods (up to 30 days annually) or short-term suspensions under 30 days.
Strategic investment framework
GEO No. 8/2026 establishes state aid schemes targeting strategic projects exceeding RON 1 billion in eligible costs. Priority sectors include biotechnology, defence, clean energy technologies, and critical raw materials processing. Support mechanisms range from direct grants and tax credits to state guarantees and equity contributions.
Several schemes provide tax credits over seven years for investments in manufacturing clusters, net-zero technologies, and high-technology R&D. The ordinance also empowers the Investment and Development Bank to mobilise domestic capital and allows pension funds to make larger private equity investments, aligning Romania’s fiscal policies with OECD standards and EU resilience objectives.
The VAT cash accounting threshold has been raised to RON 5,000,000, effective 1 March 2026, providing additional cash flow relief for qualifying businesses.
