Business & InvestmentStartup & Tech Investment
Tech Startups & Innovation
Source: Romanian Fiscal Code (Legea 227/2015), OUG 156/2024, National Agency for Fiscal Administration (ANAF) — Last reviewed: August 2026
⚠️ Important update: the 10% income-tax exemption for software developers — long one of Romania's best-known incentives — was abolished effective January 1, 2025, under OUG 156/2024. If you see this exemption described elsewhere as still active, that source is outdated: software-sector salaries are now taxed exactly like any other role.
Romania remains a major European tech hub, but the real tax-planning lever for startup founders is no longer the (now-defunct) developer tax exemption — it's the micro-enterprise regime (Microîntreprindere): a flat 1% tax on revenue instead of 16% on profit, up to €100,000 in annual turnover, provided the company has at least one full-time employee. See the "Company Tax Types" page for full details on this regime.
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1What's Actually Still In Effect
- The micro-enterprise regime (1% revenue tax) remains the best available tax structure for most early-stage tech startups — driven by revenue level and company structure, not by a special CAEN code.
- The standard 16% corporate profit tax applies once a company exceeds the micro-enterprise threshold; software-sector salaries (including programmers) are now subject to the standard 10% income tax plus full CAS/CASS contributions, same as any other role.
2What Was Removed
- The 10% income-tax exemption for "software creation" roles (Fiscal Code Art. 60, CAEN codes like 6201) was fully repealed on January 1, 2025.
- As of the same date, mandatory Pillar II pension contributions on the full salary also became compulsory for these employees — previously offset in part by the exemption itself.
- This must be verified based on current regulations and individual circumstances.
3Tip for Startup Entrepreneurs
- Base your tax planning on the micro-enterprise regime rather than any sector-specific exemption; company registration details are on the "Registration Steps" page.
- This must be verified based on current regulations and individual circumstances.
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Frequently Asked Questions
Are IT company employees still tax-exempt?
No. This exemption was fully repealed on January 1, 2025, and software-sector salaries are now taxed exactly like any other role.
So what tax-saving option is left for a startup?
The micro-enterprise regime (1% tax on revenue up to €100,000/year) remains the main legal tax-saving tool available to most early-stage startups.
This guide is part of the "Business & Investment" collection.
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