Capital Gains Tax in Romania - We Assist Foreign Entrepreneurs
Capital Gains Tax in RomaniaUpdated on Friday 03rd September 2021
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According to a general definition capital gains tax or CGT is the type of tax that is imposed on profits generated from the sale of property, precious metals, bonds, and stocks. But it is important to note that not all countries impose such a tax. In Romania, capital gains tax is 0% in some cases, but more details about this type of taxation can be found from our Romanian accountants.
Information about capital gains tax in Romania
According to Romanian laws, a capital gains tax of 10% is imposed for the sale of stocks. The income generated from rents is also subject to the same capital gain tax and it is important to mention that it can be deducted by 40% in certain cases. Here are other details about the capital gains tax in Romania:
- According to Romanian tax legislation, employees who have earned income from stock option plans are not required to pay tax when granting or exercising these options.
- It is important to note that the sale of the underlying shares, individuals who obtain capital gains must take into account the capital gains tax.
- In terms of taxable income, it is calculated as the difference between the proceeds from the sale and the exercise price, except for the related commissions, where applicable.
- Revenues derived from foreign currency transactions are subject to taxation. 10% is the capital gains tax.
- In the case of properties sold with more than RON 450,000 the capital gains tax is 3%.
- It is important to know that the sale of personal items and capital gains are not subject to taxation. Exceptions are capital gains from the sale of real estate if a certain threshold is reached.
- Gifts are not subject to capital gains tax. Also, gifts consisting of real estate may be subject to capital gains tax, unless such a gift is received from or by relatives up to the third degree.
We remind you that our team of specialists is ready to offer complete help in terms of registration for taxation and payments related to a company. You can also request audits in Romania when necessary.
Capital gains tax in case of inheritances
The Romanian laws on property taxation mention that no capital gains tax is imposed for the transfer of ownership in the case of inherited real estate, as long as this process takes place in a maximum of two years. However, if this term is exceeded, and the transfer of ownership is not made, the capital gains tax will be 1% of the value of the respective inheritance. We invite you to talk to our team of accountants in Bucharest and find out what kind of taxation is required in Romania in different fields.
Other details about the taxation system in Romania
Romania has an advantageous taxation system, compared to other countries in the European Union. Therefore, there are many who decide on foreign investments in this country. Here are some details about other taxes imposed in Romania:
- Corporate tax in Romania is 16% and applies to profits registered by a company or legal entity.
- Dividend tax in Romania is 5%.
- VAT in Romania is 19%, but there are also lower rates, depending on the services and goods offered for sale.
- Income tax rate in Romania is 10%, both for residents and non-residents.
If you want to find out more information about the taxation in Romania, please contact our Romanian accountants with experience in this field.
Why invest in Romania
Romania is an excellent business destination, and foreign investors enjoy an optimal climate, a stable economy, and various incentives. If Romania is on your list of future investments, then it is important to note the advantages offered by the business climate, including geographical positioning that offers multiple connections, rich natural resources, an experienced workforce, the ease with which a company can be registered. The following statistical data broadly show the economic direction of Romania:
- Approximately USD 98 billion was the total FDI recorded in 2019.
- In terms of business with simplified formalities, Romania ranked 55th out of 190 world economies, as mentioned in the 2020 Doing Business report.
- Austria, Germany, the Netherlands, Cyprus, and Italy are the main investors in Romania.
So if you want more information about the taxation system in Romania and more precisely about capital gains tax in Romania, we invite you to contact our accounting company in Romania.