Extended Liability in Auto Insurance in the Event of the Insurer's Insolvency
In the event of the insolvency of insurance companies, compensation claims must be submitted to the Romanian Insurance Guarantee Fund (FGA). For claims under motor vehicle liability insurance (RCA), the FGA previously applied a coverage limit—which was abolished at the end of 2025 as part of a legislative reform.
Direct Investment in Romania – Comprehensive Reform of FDI Screening
With the entry into force of Emergency Ordinance No. 17/2026 (“EO 17”) on March 13, 2026, Romania’s system for reviewing foreign direct investments (FDI) underwent a fundamental revision. The new provisions cover both the substantive scope of investment control and several elements of the review process, including thresholds, fees and procedural deadlines. The aim of the reform is to concentrate state control more strongly on economically relevant transactions and at the same time to make administrative procedures more efficient.
Important legal changes for corporations
With the entry into force of Law No. 239/2025, the Romanian legislator has introduced significant changes in company and insolvency law. The reform is part of a broader package of measures to restore and secure public resources with the aim of strengthening the financial discipline of companies and ensuring sufficient capitalization of companies.
Romania's new tax architecture 2026: Tax reform for businesses
2026 begins with a significant change in Romania's tax landscape. Through Emergency Ordinance 8/2026 (“EO”), the Romanian government has adopted a comprehensive package of measures to support economic recovery. The reform seeks to increase tax revenues and combat tax evasion while promoting investment and voluntary compliance. This represents one of the most extensive tax reforms in recent years, with direct implications for companies. What's new?
NEWSFLASH - Government enacted measure to stimulate economic growth and investment
New set of fiscal and regulatory measures with favorable immediate effect on business costs and taxation have been published in two Government Emergency Ordinances after statistical signs of recession were earlier released in February. The measures briefly described below offer pinpoint measures for both corporate and private individual income.
New regulations to speed up procedures in the construction industry
At the end of January 2026, Government Ordinance No. 7/30.01.2026 amending and supplementing several legal acts in the fields of urban planning, construction, and building supervision (“GO 7”) was published in Romania's Official Gazette. The new regulations are intended to accelerate approval procedures and make them more transparent, eliminate inconsistent or abusive practices, and introduce clear procedural obligations for both authorities and applicants. What is important?
Video surveillance in the workplace
The use of video cameras in employment relationships raises significant practical issues - not only in Romania. Employers seeking to monitor and secure their businesses often walk a fine line with respect to employees' right to privacy. The use of images from video surveillance cameras in disciplinary proceedings against employees is particularly sensitive. Employees regularly contest the admissibility of such recordings as evidence.
Buyer protection in real estate transactions – the “Nordis Law“
In April 2025 we reported on the initiative for new buyer protection in real estate transactions. In December 2025, the Romanian Parliament passed Law 207/2025, known as the “Nordis Law,” which introduces binding regulations for transactions involving future residential units. The stated goal remains to strengthen legal protection for buyers by reducing the risk of multiple sales and abusive practices in early-stage sales. The law differs in several key aspects from the 2025 draft and introduces important measures.
Recent legislative changes for employees and employers in Romania
The year 2026 brings a number of legislative changes that will directly affect employees and employers in Romania. These changes relate to remuneration, reporting obligations, sick leave, tax breaks, and working conditions.
Intra-group services – limited deductibility from 2026
From 2026, Romanian tax law will restrict the deductibility of certain expenses related to non-resident affiliated companies. This affects corporate income tax payers whose previous year's turnover was less than EUR 50 million (but not those subject to the IMCA minimum tax).