Europe · Balkans / Carpathians

Romania

A full Schengen member since 2025 with a surviving 10% flat tax and the widest citizenship-by-descent route in the EU on paper — but the descent route now carries a B1 language test and an approval rate that has collapsed from 88% to effectively zero.

Last verified July 2026177 visa-free destinations

Tax position

Income tax (top): 10% flat — survived the 2025-26 fiscal consolidation; it was the political red line
Capital gains: 3% on securities held over 365 days, 6% if held 365 days or less, withheld by the intermediary; real estate 3% if held up to 3 years and 1% if held over 3 years
Wealth tax: none as such, BUT a 0.9% special tax applies to residential property over RON 2,500,000 and vehicles over RON 375,000, on the excess — a de facto partial wealth tax directly relevant to UHNW families
Inheritance tax: none, except for certain real estate transfers; no gift tax
Special regime: None — and note the famous 0% income tax for software developers was ABOLISHED from January 2025, along with the construction and agriculture exemptions. Micro-company regime at 1% of revenue survives with a threshold cut to EUR 100,000 from 1 January 2026.
Territorial: No — worldwide income taxed
CFC rules: Yes
Exit tax: Yes — leaving has a cost
CRS: Participating