Important principles of the Romanian VAT system
The Romanian value-added tax system (also called VAT) is often difficult to understand due to the underlying complex EU regulations. Nevertheless, it is based on a rigorous, solid, EU-wide harmonized, and logical structure that provides a consistent framework of interpretation. Below are several important principles and practical notes.
Internal Auditing and Internal Controlling in Romanian Medium-Sized Enterprises
In Romania’s dynamic business environment, medium-sized enterprises play a key role. However, as they grow, sound corporate governance becomes increasingly important: internal audit and controlling are central instruments in this regard. While large companies have developed these functions extensively, implementation among medium-sized enterprises varies considerably — although the benefits are clear.
Fraud Prevention Measures for Investors in Romania
Romania attracts foreign companies with expansion and investment opportunities in a dynamic market. The continued development of the business environment drives investment, increases efficiency, and enables long-term partnerships. However, alongside economic advantages, risks such as financial fraud, corruption, and operational vulnerabilities also exist. In Romania, cultural differences and a lack of transparency in certain sectors may create exploitable gaps. Foreign corporate groups in particular require preventive measures to protect both their investments and their reputation.
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?
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.