Romania vs Ireland — Holding Company & Tax Comparison 2026
Ireland's 12.5% corporate tax is famous — but Romania's 1% micro-enterprise regime and 0% capital-gains exemption on qualifying holdings can be more efficient for early-stage and mid-market companies.
Detailed comparison
| Criterion | Romania | Ireland |
|---|---|---|
| Corporate income tax | 16% standard / 1% micro-enterprise (≤ EUR 100k) | 12.5% trading / 25% non-trading |
| Capital gains on subsidiary sale | 0% if ≥10% & ≥1 year (Art. 23) | 0% if ≥5% & ≥1 year (Substantial Shareholding) |
| Dividend WHT to EU parent | 0% (Parent-Sub Directive) | 0% (Parent-Sub Directive) |
| Dividend WHT to individual shareholder | 16% | 25% (with credit) |
| VAT standard rate | 21% (2026) | 23% |
| Min share capital | RON 500 (~EUR 100) | EUR 1 |
| Setup time | 10-14 business days | 5-10 business days |
| Setup cost (turnkey) | EUR 399-1,199 | EUR 1,500-3,000 |
| Annual compliance cost | EUR 1,800-4,800 | EUR 3,500-8,000 |
| Tax treaties | 90+ | 75+ |
| EU & Schengen member | Yes (air/sea 31.03.2024; land 01.01.2025) | EU yes, Schengen no |
| English-speaking professionals | Wide availability | Native |
| BEPS / substance scrutiny | Moderate | High (post-Pillar 2) |
Verdict
The choice of jurisdiction requires an individual assessment of activities, governance, residency and applicable tax rules.
Frequently asked questions
Is Romania's tax really lower than Ireland's?
Up to EUR 100k revenue: yes (1% turnover vs 12.5% on profit). Above that, Ireland's 12.5% trading rate becomes more competitive for high-margin businesses, but Romania's holding regime (0% capital gains) remains attractive.
Can I use a Romanian holding for an Irish operating company?
Yes — Parent-Subsidiary Directive applies both ways. Dividends from Irish sub to Romanian parent at 0% WHT, then 16% to individual or 0% to EU corporate.
Which is faster to set up?
Ireland edges Romania (5-10 vs 10-14 days). Both can be done remotely with proper documentation.
Choosing between Romania and Ireland?
Introductory strategy call in English — we'll map your specific situation to the optimal structure.