New taxes and legislative changes from the perspective of a tax lawyer in Romania

A major legal test for companies in Romania

The multitude of tax changes in Romania and legislative reforms announced by Romanian authorities for the second half of 2025 and early 2026 represents a major legal challenge for the business environment. From increasing sector-specific taxes to redefining eligibility criteria for micro-enterprises, companies are compelled to urgently assess the legal impact of these measures. In this context, the team of attorneys at The Romanian Law Firm Pavel Mărgărit and Associates offers specialized legal services for applied interpretation of the new regulations and strategic consulting for companies that wish to ensure compliance while avoiding legal risks triggered by these rapid developments.

Commercial lawyer in Romania. Restriction of the micro-enterprise tax regime

One of the most impactful changes is the gradual reduction of the turnover threshold for qualification under the micro-enterprise regime — from €250,000 as of January 1, 2025, to €100,000 starting January 1, 2026. This fiscal change will lead to the exclusion of a large number of companies from the micro regime, turning them into corporate income tax payers. In addition, the increase of the dividend tax from 8% to 10% further affects their competitiveness. A tax lawyer in Romania and a legal advisory lawyer in Romania provide complete legal assistance for assessing tax eligibility, optimizing company structure, and submitting the necessary documentation for changing the tax registration regime.

Legal advisory lawyer in Romania. Impact of tax changes on companies

Lower thresholds for micro-enterprise status, increased dividend taxes, and the obligation to switch to corporate income tax mean a substantial increase in tax and administrative burdens. For some companies, this may result in shrinking profit margins or even the inability to continue operations in their current form. A legal advisory lawyer in Romaniav and a tax lawyer in Romania thoroughly analyze the specific tax impact on each company and propose legal strategies for cost optimization, including merger in Romania, spin-off in Romania, or changes to the company’s business scope for fiscal efficiency.

Corporate lawyer in Romania. Corporate reorganization

Amid the tightening of micro-enterprise thresholds, the elimination of tax facilities, and new rules for affiliated companies, more and more firms in Romania must reevaluate their internal structure. Corporate reorganization becomes a strategic solution to effectively manage the tax related in Romania impact and remain competitive.

Companies may need to restructure through merger in Romania, to consolidate resources and reduce costs, or through spin-off in Romania, to separate fiscally incompatible business lines. In other cases, restructuring may involve transfer of shares in Romania, changing the company’s legal form, or even voluntary dissolution in Romania if the business becomes unsustainable.

The team of tax lawyer in Romania, commercial lawyer in Romania, and corporate lawyer in Romania at The Romanian Law Firm Pavel Mărgărit and Associates provides full legal assistance in all forms of corporate reorganization, including merger in Romania, spin-off in Romania, liquidations, shareholder withdrawals, amendments to corporate documents or shareholding structure, transfer of shares in Romania, and voluntary dissolution in Romania. Our lawyers manage the entire process, from legal and tax planning to drafting documentation and representing companies before the Trade Registry and the Romanian tax authority (ANAF). These procedures are crucial in preventing legal blockages, tax requalification, or administrative penalties.

“The new tax changes in Romania may trigger a legal domino effect across many industries. From contract recalculations to corporate reorganizations, every decision must be legally informed to avoid penalties or operational disruptions,” said Dr. Radu Pavel, Managing Partner of The Romanian Law Firm Pavel, Mărgărit and Associates.

The Romanian Law Firm Pavel Mărgărit and Associates is a law firm with solid experience in business law, tax related in Romania consultancy, administrative litigation, and employment law. A commercial lawyer in Romania offers integrated assistance for companies from all industries, supporting clients during periods of legislative change or complex corporate lawyer in Romania reorganizations.

Pavel, Margarit and Associates Law Firm is one of the top law firms in Romania, providing high-quality legal services. The firm’s clients include multinational and domestic companies of great magnitude. In 2024, the law firm’s success stories brought it international recognition from the most prestigious international guides and publications in the field. As a result, Pavel, Margarit and Associates Law Firm ranked 3rd in Romania in the Legal 500’s ranking of business law firms with the most relevant expertise. The law firm is internationally recognized by the IFLR 1000 Financial and Corporate 2024 guide. Additionally, Pavel, Margarit and Associates Law Firm is the only law firm in Romania recommended by the international director of Global Law Experts in London in the Dispute Resolution practice area. All relevant information about Pavel, Margarit and Associates Law Firm can be found on the website www.avocatpavel.com.