The days of Romania being a dividend tax haven are ending.
Starting January 1, 2026, the dividend tax rate jumps from 10% to 16%. This isn't just a small tweak; it's a 60% increase in the tax bill for business owners and investors.
For a business owner taking out €100,000 in dividends, the "cost" of getting your own money just went from €10,000 to €16,000. That is €6,000 gone—enough for a luxury family vacation—vanished into the state budget.
But there is a window of opportunity. If you act before December 31, 2025, you can lock in the old rates. Here is the 1-Hour Millionaire guide to navigating the change.
Key Takeaways
- The Jump: Tax increases from 10% to 16% on January 1, 2026.
- The Loophole: Interim dividends distributed in 2025 are still taxed at 10%, even if the fiscal year hasn't ended.
- Impact: Net income drops. Your "safe" dividend stocks or business withdrawals now yield significantly less.
- Action: Review your company's cash flow NOW. If you have profit, distribute it in 2025.
The Math: What You Lose
Let's look at the real numbers. If you have a portfolio of Romanian stocks (like Banca Transilvania or OMV Petrom) or own a limited company (SRL), here is the hit:
| Gross Dividend | Tax Paid (2025 @ 10%) | Tax Paid (2026 @ 16%) | Your Loss |
|---|---|---|---|
| €10,000 | €1,000 | €1,600 | -€600 |
| €50,000 | €5,000 | €8,000 | -€3,000 |
| €200,000 | €20,000 | €32,000 | -€12,000 |
Does this wreck your wealth plan? Use the Wealth Calculator to see the long-term impact on your compounding.
Your 2025 "Escape Plan"
1. The Interim Dividend Trick: You don't have to wait for the year to end to take profits. Romanian law allows quarterly "interim" dividends. If your company made profit in Q1-Q3 2025, distribute it NOW. Do not wait for March 2026.
2. Reinvest vs. Withdraw: If you don't need the cash, consider leaving profit in the company to invest in equipment or growth (which isn't taxed). But if you plan to take it out eventually, taking it out now is 6% cheaper than taking it out in January.
3. Shift to Accumulating ETFs: If you invest in the stock market, stop buying "Distributing" ETFs that pay you cash (and trigger the tax). Switch to "Accumulating" ETFs (like iShares Core MSCI World Acc). These automatically reinvest dividends before you receive them, bypassing the dividend tax entirely for now.
Conclusion: Don't Sleep on This
Taxes are the enemy of compounding. A 6% hit might seem small, but over 20 years, it's massive.
You have until December 31st to audit your portfolio and business. Call your accountant today. Ask one question: "How much profit can we distribute before the ball drops?"
Stop guessing. Get your free Wealth Roadmap here to structure your portfolio for tax efficiency.
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