Romania launched TechUp Romania, a EUR 1.05 billion state aid scheme for AI, biotechnology, green energy, and advanced technologies. Published in Government Decision No. 643/2026 on 24 August 2026, it operates under EU Regulation 651/2014 and expects to support around 350 companies per category through 2032.
Romania published Government Decision (GD) No. 643/2026 in the Official Gazette (Monitorul Oficial, Nr. 699) on 24 August 2026, establishing the “TechUp Romania” state aid scheme.
Approved by the Government on 20 August 2026, the scheme operates as a block-exempted measure under European Commission Regulation (UE) No. 651/2014, meaning it does not require formal notification to the European Commission.
The legislative framework for this scheme was set through Government Emergency Ordinance (GEO) No. 8/2026, and is designed to provide financial support for advanced technologies and high-impact innovation sectors, such as artificial intelligence, biotechnology, and green energy.
The scheme supports both research and development (R&D) activities under Component I and subsequent regional investments in production, commercialisation, or technology services under Component II.
The key provisions are as follows:
Targeted advanced technology domains (Annex 1)
Eligible projects must focus on one of six advanced technology fields: AI, computing and microelectronics; biotechnology, agritech and precision health; green energy, storage and climate technology; mobility, space and autonomous systems; advanced materials and Industry 4.0; or cybersecurity and digital security.
Two-component project structure and boundaries
Eligible projects must be independent and separable, with total eligible costs (excluding VAT) between RON 5 million and RON 50 million. Each project must sequentially link two components:
Component I (R&D)
- Must represent a minimum of RON 2 million in eligible costs.
- The execution period is limited to 48 months (extendable to 60 months for sectors with longer development cycles specified in the Guidelines).
- Stage 1 (Industrial research): Starts at Technology Readiness Level (TRL) 3, moving to TRL 4 (prototype development and validation).
- Stage 2 (Experimental development): Focuses on scaling the prototype to reach TRL 8 (commercial system design). This stage is mandatory.
Component II (Regional investments in production/services)
- Must represent a minimum of RON 3 million in eligible costs.
- Entails setting up production capacities or service provisions that directly deploy the deep tech developed in Component I.
Component I (R&D): Combined funding and cost rules
Beneficiaries may combine non-refundable grants with a 200% corporate income tax deduction for eligible R&D expenditure, covering qualifying tangible and intangible assets, personnel and contracted research costs, and overheads of up to 20% of personnel costs. However, the same project costs cannot also benefit from general tax incentives under Articles 20 and 20¹ of the Romanian Fiscal Code.
Component II (Regional investments): Cost routes and limits
Under Component II, companies can choose between two cost routes: salary costs for two consecutive years for newly created project-related jobs, or investments in new tangible and intangible assets. The asset route caps construction costs at 40% of eligible tangible assets and intangible assets at 30% of total eligible costs, with assets required to remain operational and in the region for at least five years after project completion.
Budget, timing, and target beneficiaries
The scheme has a total budget of RON 5.313 billion (approximately EUR 1.05 billion), split almost equally between R&D and regional investment support. State aid will be available from 2026 to 2032, with payments extending through 2041 and the 200% tax deduction available from 2027 to 2040.
The scheme is expected to support around 350 companies under each type of aid, with up to 70% of annual funding reserved for Category B companies.
Maximum aid intensities and regional bonuses
R&D aid is capped at 50% for industrial research and 25% for experimental development, with additional bonuses of 15% or 5% for projects in qualifying assisted regions. Regional investment aid varies by county, with intensity rates ranging from 30% to 70% and maximum aid ceilings of up to EUR 57.75 million.
Application, payment and verification safeguards
Projects must not begin before the application is submitted, and applications are generally assessed within 45 business days. Grants may include advances of up to 30%, subject to reporting requirements, while R&D payments require TRL validation.
Project changes, revocation and recovery
Projects must begin within six months of the financing agreement, while relocation is restricted to qualifying locations. Beneficiaries must meet turnover and five-year asset or employment maintenance requirements. Failure to meet key conditions, including TRL validation, reporting deadlines or project completion requirements, may result in revocation and recovery of aid with interest.
