Romania has revised its small-business and freelancer tax regimes more than once over the years. By 2026 the structure has settled into a clearer pattern, but it's a pattern that has to be read against current legislation - any planning that relies on pre-reform numbers will be wrong.
The micro-SRL
The micro-enterprise SRL is a Romanian LLC taxed on turnover (rather than profit) below specified caps, with rates and conditions defined by current legislation. Used widely for small founders, agencies, and consultancies.
What to plan for:
- Turnover cap: current threshold is set in law and has been adjusted; check at planning time.
- Activity restrictions: certain activities are excluded from the micro regime.
- Employee or substance conditions: minimum substance / employment conditions have applied at various times; check current rules.
- Transition path: if the micro cap is exceeded, the company moves to ordinary CIT - the transition has its own mechanics.
The PFA (sole proprietor / freelancer)
The PFA framework is for individual freelancers operating outside a company wrapper. Tax mechanics include income tax, social contributions (CAS, CASS), and limits that determine which contributions apply.
What to plan for:
- Income tax: flat rate on PFA income.
- Social contributions: CAS and CASS apply over thresholds, with caps in some cases.
- Activity registration: PFA must be registered with the correct activity codes (CAEN).
- Income proof: keep clean records; the simplified accounting still has obligations.
The IT-sector position
Historic IT-sector tax incentives that exempted certain qualifying employees from personal income tax have been reformed. By 2026 the IT-sector benefits are narrower than at their peak; specific conditions on activity, certification, and employer status apply.
Any case that depends on "Romanian IT tax exemption" must verify the current state of the regime, the eligibility of the role, and the documentation needed.
What we tell founders and freelancers
- Pick the wrapper (micro-SRL, PFA, or ordinary SRL) based on the actual business profile and growth path - not on the headline rate.
- Plan the social-contributions side; for some profiles, social contributions are the larger line item.
- Watch the turnover cap if you're on the micro regime - exceeding it mid-year has real consequences.
- For IT-sector benefits, verify before relying.
- Document the activity and the substance from day one.
Romania's regimes are real tools when used for the right profiles. They are not the simple "low-tax wrapper" that the marketing implies; the conditions matter.