Romania: Dividends and repatriation of earnings

Dividend tax Romania


Repatriation of earnings

As of August 1993, all profits are transferrable after tax obligations have been met. “Non-resident investors in Romania have the right to transfer, in convertible currencies, earnings from dividends or profits originating from a company where they are shareholders or partners, without restrictions once taxes have been paid.”

The withholding tax on dividends paid by Romanian companies is 16%.

Thanks to certain Romania tax treaties, this 16% tax can be reduced down to even 0% by European directives when the distribution is in favor of another company owning for more than two years at least 10% of the Romanian company paying out the dividends. When a profits from dividends are earned by a non-resident of Romania from a country with no Romania tax treaties, the withholding tax at source is 50%.