Why DACH companies pick Romania
- 1% micro-enterprise tax for qualifying SRLs up to €100,000 turnover and stable 16% corporate income tax
- Skilled German-speaking workforce available across Romania
- EU member with full freedom of services and goods — no customs barriers
- Romania–Germany Double Tax Treaty (1973, amended) limits withholding tax on dividends to 5%/15%
Typical DACH client matters we handle
- Incorporating Romanian subsidiaries of German GmbH / AG parents (SRL or SA structures)
- Drafting and negotiating Liefervereinbarungen (supply agreements) under Romanian commercial law
- Posting engineers and technicians under EU Directive 96/71/EC and Law 16/2017
- Coordinating with German Steuerberater on transfer pricing and permanent establishment risk
- Trademark protection before OSIM and the EUIPO
- Employment law disputes, restructuring and collective dismissals in DACH-owned plants
Cross-border tax & social security
The DE-RO DTA assigns taxing rights on business profits, dividends, interest, royalties and capital gains. For DACH groups with Romanian subsidiaries the key issues are typically: avoiding a hidden permanent establishment, transfer-pricing documentation (Order ANAF 442/2016 and OECD-aligned local file), and substance requirements for dividend withholding-tax exemption under the EU Parent-Subsidiary Directive.
On social security, Regulation 883/2004 coordinates contributions: posted workers stay on German social security with an A1 certificate, while expatriates resident in Romania >183 days normally become CASS/CAS taxable here.
Frequently asked questions
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