The proposed tax reforms target increased taxes on dividends, reduced incentives, stricter expense deductions, and simplified VAT rates.
Romania published its decision approving the 2025-2028 Government Programme in the Official Gazette on 23 June 2025.
The plan outlines proposed reforms across finance, justice, agriculture, energy, and education to tackle the nation’s economic, geopolitical, and social challenges.
The proposed tax measures include increasing dividend taxes, temporarily taxing banks’ excessive profits, and limiting the deductibility of certain expenses that reduce profits, such as consultancy costs for branches.
The reforms also impose additional taxes on gambling, betting, cryptocurrency and stock market gains, short-term property rentals, and income from social media platforms, remove real estate VAT incentives, and limit expense deductions. They also include a review of tax exceptions for potential elimination and simplified VAT rates.
The proposed property taxes will align with market values, and an ecological tax will be implemented as part of the National Recovery and Resilience Plan.
Lastly, mandatory taxation will apply to activities benefiting from government support programs.
