The latest economic recovery package does not cover 2026 only, as funding schemes concern Romania's economy until 2032, and there are EUR 5 billion for all schemes, Finance Minister Alexandru Nazare announced on Tuesday evening.
"The recovery package is not a package designed for 2026. As financing schemes, it concerns Romania's economy by 2032, as total amounts projected by 2032 are standing t EUR 5 billion for all schemes," Nazare said at the end of a government meeting where the economic recovery package was approved.
The criteria that will be considered for the support schemes will be developed within 90 days of the adoption of the relevant pieces of legislation, and they will be debated with Romanian entrepreneurs.
"Also, as a very important point of this package, Romania finally has an instrument to attract large investments, of over RON 1 billion, of over EUR 200 million, an instrument that we did not have until now and, unfortunately, in the past years we lost a lot of large investments because we did not have the means to offer a strategic investor the necessary conditions to come to fruition in Romania," said Nazare.
According to him, under the latest economic recovery package, Romania will be much better "equipped" to attract investments, helping to project Romanian economic leadership in the region.
"Through this economic recovery package, we mark exactly those strategic areas that Romania needs in the future, first of all to be able to attract large strategic investments much faster, competitively and at the pace at which these investments can be attracted at the moment, because there is competition at regional, European and global level to attract such investments. So Romania will be much better equipped to attract investments; it will be much better equipped to project Romanian economic leadership in the region, and through investment banks Romanian entrepreneurs will be able to show economic interest in the region, in the countries in the region, and we will support them. In the schemes presented there are these provisions."
Nazare says this legislative package marks a strategic transition from a growth based on consumption to one based on productive investments.
"I believe that the adoption of this legislative package represents a transition for Romania. By doing so, we mark a strategic transition from growth based on consumption to growth based on productive investments, innovation and domestic production. From now on, we turn our attention to these areas, instead of consumption, because we have found in recent years that this consumption on which we used to rely brought us into situations of budgetary imbalance. Very importantly, tax credits and everything that means measures to increase the liquidity of companies in the market to help entrepreneurs are very important. The entire fiscal part of the package remains very important, including an increase of the VAT ceiling on collection and the introduction of super-accelerated depreciation, but especially the increase in the attractiveness of the reinvested profit. As such, there are not many novelties from the initial version of the package. The scheme of mineral resources and new technologies will be managed by the Ministry of Economy. According to the powers of this ministry, it will take over this scheme in its entirety, and for the defence scheme, the government ordinance comprising the criteria regarding this scheme will be developed in collaboration with the Ministry of Economy. These are the changes made at this government meeting," he said.
For the first time, the tax credit will be introduced in the area of research, development and innovation.
"As novelties, we are introducing the tax credit for the first time and we are making use of this tax credit in the area of research, development and innovation, for which we have some dedicated schemes to attract and scale business ideas in this area, from the university area, from the accelerator to the larger business area. This tool did not exist before. These are just a few ideas from the recovery package," he said.
The minister also said that the impact of the recovery measures this year is RON 2.2 billion, and the effects will be seen in the medium and long term.
The economic recovery bill was published on February 5 by the Ministry of Finance.
One of the main measures regards micro-enterprises. Companies that had to switch to corporate income tax will be able to return to the status of micro-enterprise if their turnover falls below the threshold of EUR 100,000.
Economic consultant Adrian Negrescu recently told AGERPRES that, so far, the sale of a company's asset (a car, equipment or a building) would artificially inflate the turnover, automatically removing the company from the favorable tax regime. In the current bill it is proposed that one sale of fixed assets per year be excluded from the calculation of the ceiling, eliminating the risk that a simple asset management decision triggers an increase in taxes.
Also, the term for hiring a new employee (a mandatory condition for remaining a micro-enterprise) increases from 30 to 90 days.
The recovery package also provides for an increase in the ceiling for the application of the "VAT on collection" system, from the current limit of RON 4.5 million to RON 5 million in 2026, followed by a further increase to RON 5.5 million in 2027.
At the same time, the ceiling for depreciable fixed assets is increased, from RON 2,500 to RON 5,000 and accelerated depreciation is introduced for certain categories of investments.
The package suggests the introduction of a tax credit mechanism for research and development, which would allow taxpayers to qualify for a credit equivalent of 10% of eligible expenditure for research and development activities.
In order to support the capital market, the Ministry of Finance proposes to grant an additional deduction of 50% of the expenses related to the admission and maintenance for trading of shares on a regulated market, to be regulated by order of the finance minister.
On the other hand, the Ministry of Finance will finance strategic economic investment projects through state aid schemes or ad-hoc aid, if the investment is made in Romania, has a value of at least RON 1 billion and generates a multiplier effect in the economy. The support will be provided in the form of: grants; tax credit; state guarantees for loans contracted by the investor; interest subsidies for loans contracted by the investor; capital contributions.
Investments are envisaged in competitiveness clusters and in sectors where products with a trade deficit are obtained from the manufacturing industry; investments that ensure the exploitation of mineral resources, in particular strategic and critical raw materials, and investments in the production of finished products based on "net zero" technology and their main specific components, in line with the Clean Industry Pact; investments in research, development of high technologies; investments in the defence industry to strengthen industrial capacities to promote defence capabilities; investments that increase competitiveness and regional convergence; investments made by Romanians in the diaspora.
The package also provides for bonuses for the payment of taxes. Thus, individuals could receive a bonus of 3% of the income tax due for income earned in 2025 if they pay their tax and pension and health contributions in full by April 15, 2026.
Companies will also qualify for a 3% bonus for the payment of corporate income tax or micro-enterprise income tax if they have submitted all the declarations according to the tax vector and have fully extinguished the annual corporate income tax/micro-enterprise income tax for 2025/the amended fiscal year starting in 2025, as the case may be.
Contributions to occupational pension funds will become tax deductible starting with the income related to 2026, within the limit of the RON equivalent of EUR 400 annually for each person.
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