Romania Investment Income Guide 2026

Overview — Investment Income Taxation

Investment income in Romania is generally subject to the flat 10% personal income tax rate. The tax treatment varies by income type — some categories have withholding taxes (dividends, interest), others are included in total income (rental, business). Since 2023, social contributions (CASS) may also apply to certain investment income categories above specified thresholds. ANAF receives comprehensive data from financial institutions, making compliance important. The tax year is the calendar year.

Dividend Income — 10%

Dividends distributed by Romanian-resident companies to individual shareholders are subject to a 10% withholding tax. This is a final tax for Romanian residents — the dividend income is not included in total income and is not subject to further IIT. Non-resident individuals may be subject to the same rate or a reduced rate under a double tax treaty. For corporate shareholders, dividends may be tax-exempt under the participation exemption regime (10%+ holding for at least one year). Dividends from EU/EEA companies may also benefit from the Parent-Subsidiary Directive.

Interest Income — 10%

Interest income from bank deposits, bonds, and other fixed-income instruments is subject to a 10% withholding tax. Key rules include:

• Bank deposits: 10% withholding tax (final tax for residents)
• Government bonds: Interest from Romanian government bonds is generally exempt from tax
• Corporate bonds: 10% withholding tax on interest payments
• Foreign interest: Included in total income and taxed at 10% (with foreign tax credit for withholding taxes paid abroad)

Rental Income — 10% (with Social Contributions)

Rental income from real estate is included in the taxpayer's total income and taxed at the flat 10% rate. A standard deduction of 40% of gross rental income is allowed for all expenses (no documentation required). The net rental income (after the 40% deduction) is subject to 10% IIT. Additionally, if rental income exceeds 6 minimum wages (approximately RON 22,800 in 2026), the taxpayer must also pay CASS (health insurance) at 10% of the net income. Rental income from agricultural land has a separate tax regime with a fixed rate per hectare.

Alternative Investments

Income from alternative investments is taxed as follows:

• Crowdfunding loans: Interest from P2P lending is taxed as other income at 10%
• Cryptocurrency: Gains from crypto trading are taxed at 10% as income from other sources
• REITs: Romanian REITs (SAI) distributions are taxed at 10% withholding
• Private equity: Gains from private equity investments are taxed as capital gains at 10%

FAQs

Are dividends from foreign companies taxable in Romania?

Yes, dividends received by Romanian residents from foreign companies are included in total income and taxed at 10%. A foreign tax credit is available for any withholding tax paid in the source country. Dividends from EU companies may be exempt under certain conditions.

What social contributions apply to investment income?

Health insurance (CASS) at 10% applies to investment income (rental, dividends, interest, capital gains) if the total from these sources exceeds 6 minimum wages (approximately RON 22,800) per year. CASS is capped at 60 minimum wages. Pension contributions (CAS) are not payable on investment income unless the individual is also self-employed.

How is rental income from overseas property taxed?

Rental income from foreign property is included in Romanian taxable income at the flat 10% rate, after deduction of the 40% standard allowance (or actual expenses if documented). A foreign tax credit is available for property taxes paid abroad subject to limitations.

Disclaimer

This guide provides general information about taxation of investment income in Romania for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Romanian tax advisor or ANAF directly for advice specific to your situation. InvestmentKit does not provide tax advice.