What is the best structure for a holding company in Romania?

The most common structure is an SRL (Limited Liability Company) holding shares in subsidiary SRLs or SAs. For larger groups, an SA (Joint Stock Company) may be preferred. Romania's participation exemption means dividends received from EU/EEA subsidiaries can be tax-exempt under the Parent-Subsidiary Directive.

How much tax does a Romanian holding company pay?

A Romanian holding SRL with revenue under €100,000 pays just 1% on revenue (micro-enterprise regime). Dividends received from EU subsidiaries with 10%+ ownership held for 1+ year are exempt. Outbound dividends to shareholders are taxed at 16%. Capital gains on share disposals may qualify for participation exemption.

What are the requirements to set up a holding company in Romania?

Minimum capital is RON 1 (€0.20) for an SRL. You need at least one shareholder (individual or corporate, any nationality), a registered office in Romania, and a designated administrator. Formation takes 3-5 business days and can be done entirely remotely via Power of Attorney.

Can a Romanian holding company own subsidiaries abroad?

Yes. A Romanian holding can own subsidiaries in any country. EU Parent-Subsidiary Directive benefits apply for EU/EEA subsidiaries. Romania also has 90+ Double Taxation Agreements (DTAs) covering most major economies, enabling efficient cross-border profit repatriation.

Is Romania a good jurisdiction for holding companies compared to Netherlands or Luxembourg?

The appropriate jurisdiction depends on ownership, governance, activities and applicable tax rules. A Romanian holding structure requires an individual legal and tax assessment.

What Double Taxation Agreements does Romania have?

Romania has 90+ DTAs covering all EU member states, the US, UK, Switzerland, China, Japan, UAE, Israel, India, and most other major economies. These treaties typically reduce withholding taxes on dividends (5-10%), interest (5-10%), and royalties (5-10%) between Romania and treaty partners.

2026 Guide

Tax Optimization

Holding Company Romania

Set up a tax-efficient holding structure in Romania: 1% micro-enterprise tax, EU participation exemption, and 90+ Double Taxation Agreements — at a fraction of the cost of Netherlands or Luxembourg.

Why Romania for Your Holding Company

1% Micro-Enterprise Tax

Holdings with revenue under €100K pay just 1% on revenue instead of 16% CIT. The lowest effective corporate tax in the EU.

EU Participation Exemption

Dividends from EU/EEA subsidiaries (10%+ ownership, 1+ year) are tax-exempt under the Parent-Subsidiary Directive.

90+ Double Tax Treaties

Comprehensive DTA network covering US, UK, EU, China, Japan, UAE, Israel, India, Switzerland, and more.

16% Dividend Tax

One of the lowest outbound dividend withholding rates in the EU. Further reducible via DTAs to 5% for qualifying shareholders.

€0.20 Minimum Capital

No meaningful capital barrier. SRL formation in 3-5 days, entirely remotely via Power of Attorney.

60-80% Lower Compliance Costs

Annual accounting, audit, and legal compliance costs are dramatically lower than Netherlands, Luxembourg, or Ireland.

How to Set Up a Holding Company in Romania

Choose the holding structure

Select SRL or SA (for larger operations). Determine whether the micro-enterprise regime (1% on revenue under €100K) applies to your holding.

Prepare incorporation documents

Draft Articles of Association specifying the holding's object of activity (NACE 6420 — Activities of holding companies). Prepare shareholder resolutions and Power of Attorney for remote registration.

Register the holding company

File with the Romanian Trade Registry. Registration takes 3-5 business days. Obtain fiscal registration (CUI) and VAT registration if applicable.

Open corporate bank account

Open a business bank account in Romania (or remotely via partner banks). Deposit initial capital and set up treasury management.

Structure subsidiary ownership

Acquire or incorporate subsidiaries. Ensure 10%+ ownership for EU Parent-Subsidiary Directive benefits. Document transfer pricing policies for intercompany transactions.

Implement ongoing compliance

Set up annual financial reporting, transfer pricing documentation, beneficial ownership declarations, and AML compliance procedures.

Romania vs Traditional Holding Jurisdictions

Feature	🇷🇴 Romania	🇳🇱 Netherlands	🇱🇺 Luxembourg
Corporate Tax	1% micro / 16%	15-25.8%	24.94%
Participation Exemption	Yes	Yes	Yes
Dividend WHT	16% (lower via DTA)	15%	15%
Min Capital (LLC)	€0.20	€0.01	€12,000
Formation Time	3-5 days	1-2 weeks	2-4 weeks
Annual Compliance Cost	€2,000-5,000	€10,000-25,000	€15,000-40,000
DTA Network	90+	100+	80+