Tax Advisory in Romania for German Clients
German groups usually ask how profits and services flow between the GmbH and the Romanian company. The Germany–Romania double tax treaty and EU directives (Parent–Subsidiary, Interest and Royalties) frame withholding on dividends, interest and royalties.
Typical matters for German clients
German groups usually ask how profits and services flow between the GmbH and the Romanian company. The Germany–Romania double tax treaty and EU directives (Parent–Subsidiary, Interest and Royalties) frame withholding on dividends, interest and royalties.
- Applying the Germany–Romania treaty and EU directives
- Transfer-pricing documentation for intra-group services
- VAT on cross-border services within the EU
- Permanent-establishment risk for German staff working in Romania
EU framework that applies
Within the EU, cross-border VAT and the Parent–Subsidiary and Interest–Royalties Directives, as implemented in the Romanian Fiscal Code (Legea 227/2015), frame many group payments.
Documents and cross-border formalities
German corporate documents (Handelsregister extract, shareholder resolutions) are apostilled under the 1961 Hague Convention and translated into Romanian by an authorised translator. In Germany the apostille is issued by the competent regional authority (for court and notarial documents usually the Landgericht or the Land authority designated for the document). Court documents are served between EU Member States under Regulation (EU) 2020/1784.
- Corporate documents of the German GmbH or AG
- Power of attorney for remote signing
- Authorised Romanian translations
- Beneficial-owner declaration (Legea 129/2019)
People and staff
EU citizens can live and work in Romania without a work permit; posted workers keep home social security with an A1 certificate under Regulation (EC) No 883/2004.
What a tax advisory engagement covers
Romanian tax advice for a foreign client always combines three layers: the Romanian Fiscal Code (Legea 227/2015), the applicable double tax treaty and, for EU parties, the relevant directives. We work through all three before giving an answer.
- Corporate income tax and the micro-enterprise regime eligibility check
- Withholding tax on dividends, interest, royalties and service fees
- VAT registration, intra-EU supplies and reverse-charge mechanics
- Transfer-pricing documentation for related-party transactions
- Permanent-establishment analysis for staff working in Romania
- Replies to ANAF queries and assistance during tax audits
Tax issues that catch foreign groups by surprise
Romanian tax practice has particularities that differ from what groups expect from their home jurisdiction. These are the recurring ones.
- Withholding applied because a tax-residence certificate was missing or expired
- Intra-group services invoiced without supporting documentation
- VAT registration triggered later than the law requires
- Treaty benefits assumed without checking the current treaty text and protocol
How It Works
Fact review
We map entities, flows and residence of each party.
Legal analysis
We apply the Fiscal Code, treaty and EU rules to each flow.
Documentation
We prepare memoranda, residence-certificate checklists and contracts.
Ongoing support
We monitor changes in Romanian tax law and update the analysis.
How we work with German clients
Scope, stages and documents are agreed in writing before work starts.
- Legal activity since 2008 — 18 years of experience
- Remote process for German clients with power of attorney
Phone
+40 740 011 411Response Time
Mon–Fri 10:00–16:00
Schedule
Mon – Fri: 10:00 – 16:00
Frequently Asked Questions
Discuss your German matter
Cabinet de Avocatură Pantilimon Rikhárd-Árpád, Târgu Mureș. Office hours: Monday–Friday, 10:00–16:00.