Pavel, Margarit & Associates Romanian Law Firm | View firm profile
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 Margarit 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.
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.
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 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 Margarit 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, Margarit and Associates.
The Romanian Law Firm Pavel Margarit and Associates provides complete legal assistance in tax law in Romania, commercial law in Romania, and corporate matters, offering both consultancy and legal representation for companies across Romania. Do not hesitate to contact us by filling out the form on our website: https://avocatpavel.com/contact/.
Don’t navigate these challenges alone. Contact Us today for expert assistance tailored to your needs.
The Romanian Law Firm Pavel Margarit 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.