A 3% bonus on the payment of income tax more than a month ahead of schedule, more flexible terms for micro-enterprises, easing taxes and grants of up to EUR 20,000 for Romanians living abroad who open productive businesses in the country, financing for investments in strategic areas, schemes dedicated to the development of Romanian tourism, deductions for individual investors up to 400 euros/year and 50% of the costs of admission to trading for companies, as well as the establishment of the Interministerial Committee on PPP projects are some of the measures included in the package for relaunching the economy and stimulating investments adopted by the Government on Tuesday evening.
„The Romanian Government has approved (…) at the proposal of the Ministry of Finance, the Emergency Ordinance establishing a complex set of measures to revive Romania’s economy. The measures adopted target a mix of fiscal measures and measures to stimulate investments, exports and economic activity, as well as accelerating modernization through domestic investments and the strategic mobilization of domestic capital towards sectors with high added value, strategic development projects, ensuring the basis for a resilient and sustainable economic recovery in the long term,” a statement from the Ministry of Finance states.
„Through this Emergency Ordinance, the Government reconfirms that the zero priority is the structural transformation of the economy. The mix of measures adopted generates concrete effects for the population and the business environment, starting this year: increasing disposable income, stimulating employment and productivity, tax simplification and faster access to financing for companies, modernizing infrastructure or adopting state-of-the-art technologies. We are thus building an ecosystem that will attract major strategic projects, reduce dependence on imports and reward the fiscal discipline of loyal taxpayers. It is a clear signal of stability and a competitiveness engine that will position Romania as a regional industrial and technological hub,” said Alexandru Nazare, Minister of Finance.
The measures included in the GEO
RELIEF FOR TAXPAYERS AND THE BUSINESS ENVIRONMENT
Measures to optimize liquidity and simplify tax compliance:
The 3% compliance bonus through which the Ministry of Finance rewards voluntary compliance.
Profit tax payers, microenterprises and individuals, through the Single Declaration, receive a 3% reduction in the tax due for 2025, if they pay their obligations on time, by April 15, 2026. From March 2026, the Single Declaration will be automatically pre-filled in the SPV, representing a new important step towards tax simplification.
Reform of VAT on collection
To prevent financial blockages, the ceiling up to which companies can choose to pay VAT only after cashing invoices increases to RON 5 million in 2026 and to RON 5.5 million in 2027. This eliminates the situation in which companies were crediting the state by paying VAT for uncollected invoices and improves companies’ liquidity.
Making the microenterprise regime more flexible
In the case of newly established micro-enterprises, the initial employment period is increased from 30 days to 90 days for newly established enterprises. In the case where the micro-enterprise has a single employee and the related employment contract terminates, the 30-day period for hiring a new person is maintained and it is proposed that if this condition is not met, the exit from the micro-enterprise bracket should apply starting with the quarter following the one in which the employment relationship ended.
At the same time, occasional sales of equipment (fixed assets) are no longer included in the EUR 100,000 ceiling, preventing the forced transition to profit tax in the case of equipment modernization. Also, another provision of the ordinance is that relating to the situation in which the sole employee who goes on sick leave – the period of over 30 days of leave no longer leads to the loss of the micro-enterprise tax bracket.
The emergency ordinance approved today also updates the ceiling for fixed assets, meaning that goods with a value of up to RON 5,000 (compared to RON 2,500 previously) can now be directly expensed, simplifying accounting bureaucracy and offering an immediate tax advantage.
Subsequently, the necessary time margin is created for companies to allow them to secure their working capital and identify the right personnel for the activity carried out, without losing their status as a micro-enterprise.
CAPITALIZATION AND FINANCING INSTRUMENTS
The operationalization of BID S.A.: Measures to support the economy through the Investment and Development Bank (IDB), which will implement guarantee schemes and establish investment vehicles/equity funds. The general framework for managing the financing and guarantee operations that the IDB will carry out on behalf of and for the account of the state, as well as the intervention method, including the conditions, instruments used, targeted sectors and eligible beneficiaries, will be established by specific mandates granted to the bank and approved by Government decision.
For this purpose, in 2026, the Ministry of Finance will make RON 1 billion available to the bank.
At the same time, the proposals to amend Law no. 411/2004 aim to include Banca de Investiții și Dezvoltare (Investment and Development Bank) S.A., alongside the Romanian state, in the category of entities that can participate directly or indirectly in private equity investment funds. The measure contributes to increasing the degree of safety of privately managed pension fund investments and to supporting the financing of the national economy, by stimulating long-term investments.
The INVEST AT HOME Program: With a budget of EUR 100 million for the period 2026-2029, the program offers Romanians abroad a grant of up to 20,000 euros and state-guaranteed loans to open businesses in productive fields in Romania. Basically, Romanians residing in other countries who want to open a business in Romania will be able to benefit from grants, tax credits, state guarantees for loans contracted by the investor, interest subsidies for loans contracted by the investor, capital contributions or other support measures.
The budget is calibrated to mobilize investments of approximately RON 250 million in the economy, through the leverage effect of the IDB guarantee on bank financing. Eligible start-ups are established by Romanian citizens living abroad who move their activity to Romania, in productive fields and services with high added value, based on a solid business plan and a commitment to maintain the investment and jobs for a minimum period.
Stimulating the capital market: Individuals will be able to deduct investments in shares or ETFs up to a limit of 400 euros/year. Companies that become listed on the stock exchange benefit from a 50% deduction of the costs of admission to trading in the first year.
Export support: The transfer of RON 1 billion to Exim Banca Românească is authorized to support export credits, international transactions and Romanian investments abroad as the Export Credit Agency (ECA).
The additional funds allocated to Exim Banca Românească could catalyze private co-financing, support exports and boost the growth of financial intermediation by guaranteeing and insuring financing with external risks, while generating jobs and budgetary revenues from taxes and VAT. These effects contribute to amplifying the economic multiplier and reducing the trade balance deficit.
PUBLIC-PRIVATE PARTNERSHIPS (PPP)
In the field of PPP, the measure adopted today stipulates the allocation of EUR 25 million, between 2026 and 2028, for the technical preparation of large projects. This money will ensure quality feasibility studies and legal assistance to attract private capital in infrastructure.
At the same time, the Inter-Ministerial Committee on PPP Projects, headed by the Minister of Finance, will be established. This body will monitor the implementation of projects and ensure cooperation between ministries, the business community and local authorities to unlock large public investments.
STATE AID MEASURES AND INVESTMENTS WITH SIGNIFICANT IMPACT ON THE ECONOMY
State capital financing structures in strategic sectors
The ordinance sets measures to strategically support investments in several key directions:
Manufacturing industry: Grant or tax credit awarded for a period of 7 years for investments in activity sectors that lead to the obtaining of products with a trade deficit in the manufacturing industry.
Research and high technologies – TECH-UP ROMANIA Scheme: Projects benefiting from cumulated grants with a 200% deduction of expenses with tangible and intangible assets, reducing the taxable base for profit tax, the minimum value of an investment project being RON 5 million and the maximum RON 50 million. The objective is for innovative companies to be able to scale frontier technologies faster, using both non-reimbursable support and tax incentives, in a framework compatible with European state aid rules. This scheme provides support so that innovative SMEs can quickly transform research results into marketable products and technologies, by combining non-reimbursable financing with tax incentives, so that investments in advanced technologies become more accessible and competitive at European level.
Competitiveness and regional convergence: Support through guarantees and interest subsidies to reduce territorial disparities, with a minimum investment value of RON 7 million and a maximum of RON 50 million.
Diaspora: Investments made by new companies with majority capital held by Romanians abroad, grant awarded through IDB S.A. The Ministry of Finance grants state aid based on schemes or in the form of a personalized ad-hoc state aid for the financing of investment projects that can take at least one of the following forms: grants, tax credit, state guarantees for loans contracted by the investor, interest subsidies for loans contracted by the investor, capital contribution or other support measures.
These financing structures will be administered by the Ministry of Finance.
Also, for the development of the defense industry, the Government adopts a dedicated support structure, which will be managed by the Ministry of Finance and the Ministry of Economy, Digitalization, Entrepreneurship and Tourism:
Defense Industry: Investments in defense industry sectors, in order to strengthen industrial capacities and promote national defense capabilities.
The measure targets projects with a minimum investment value of RON 10 million and aims to modernize and develop industrial infrastructure, increase the competitiveness of economic operators in the field, as well as stimulate the domestic production of equipment and technologies for use in the field of defense.
In the segment of critical raw materials, future technologies, tourism and digital innovation, the following financing structures are adopted:
Critical raw materials and „Zero Net” technologies: Investments ensuring the capitalization of mineral resources, in particular strategic and critical raw materials as defined in Regulation EU 2024/1252 of the European Parliament and of the Council establishing a framework to ensure secure and sustainable supply of critical raw materials and amending Regulations (EU) no. 168/2013, (EU) 2018/858, (EU) 2018/1724 and (EU) 2019/1020 and for investments in the production of finished products based on „zero net” technology and their specific main components, in accordance with Commission Communication C/2025/3602 Framework for State aid measures supporting the clean industry Pact, projects having a minimum investment value of RON 75 million.
Tourism and digital innovation: Schemes dedicated to the development of Romanian tourism and the acceleration of digital transition in entrepreneurship.
These programs will be administered by the Ministry of Economy, Digitalization, Entrepreneurship and Tourism. According to the Ministry of Finance, through the set of measures included in the Ordinance adopted on Tuesday, the Government aims to accelerate Romania’s economy and adapt the economic model towards growth engines based on high technology. The Emergency Ordinance ensures the balance between stimulating domestic production and sustainable fiscal-budgetary consolidation, guaranteeing the strategic autonomy and economic security of the state in the medium and long term.
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