Amid growing budgetary pressure and obligations to international institutions, the Romanian government is preparing a new series of fiscal measures for 2025. They target a wide range of taxpayers, with a major impact on micro-enterprises, the liberal professions, but also on small investors.
Among the most important proposals under debate are:
•Dividend tax increase
•Redefining the microenterprise regime with new eligibility thresholds and conditions
•Progressive tax on the income of individuals
•Increase in social contributions for PFAs and self-employment contracts
•Reintroduction of compulsory health and pension contributions even for income from dividends and rents
These measures could bring additional revenue to the budget, but at the same time create a sense of uncertainty in the business environment, which is felt in the planning and scaling of any economic activity.
Who Are Most Affected?
At the heart of these changes are small and medium-sized entrepreneurs. Those who operate through microenterprises or as authorised natural persons (PFA) are at risk of facing:
•Significantly higher costs for tax compliance and payment of contributions
•Limitations in the structure of eligible income and activities
•Loss of tax flexibility that has characterized the Romanian business environment in recent years
For startups, freelancers and small companies, these changes can be discouraging, especially in an economic context already complicated by inflation and regional uncertainties.
A Fiscal Climate Pushing Towards Outsourcing
Without promoting radical solutions or tax evasion, it must be said that some Romanian entrepreneurs are increasingly turning to business-friendly international jurisdictions, where taxes are predictable, digitalization is at high standards, and compliance costs are lower.
It is not just about fiscal optimization, but about stability, transparency and efficiency. In a globalized economic environment, it is natural for entrepreneurs to consider other options — including setting up entities in areas such as the United Arab Emirates, where the law allows for international business without excessive tax pressures.
Dubai — The Discreet Example of the Modern Entrepreneur
Without necessarily being a front-page topic, Dubai has in recent years become a center of attraction for entrepreneurs around the world. Those operating in digital, consulting, online services or e-commerce industries have found that certain regions — such as free zones — offer:
•Access to clear tax regimes, no tax on profits or dividends
•Competitive digital infrastructure
•Possibility of 100% ownership of the company, without a local associate
•Simple and quick setup procedures
•International recognition and openness to global markets
Of course, these options involve a certain level of information, advice and compliance, but they can be a viable solution for those who want to continue their business without being choked by the local tax burden.
What Can You Do Now?
If you are an entrepreneur or freelancer and feel that the new taxes in Romania will significantly affect your business, here are some directions you can look at:
1. Proactive tax advice:Talk to an expert about the concrete impact of the new measures on your business.
2. Diversification of legal forms:Maybe it's time to switch from PFA to LLC or vice versa, depending on the type of activity and income.
3. Exploring international options:You can consider setting up a legal entity in a jurisdiction with a competitive tax regime, such as Dubai, that offers reduced taxation, a stable legal framework and simplified registration procedures in accordance with international rules.
4. Digitalization of business:Process automation and outsourcing of certain operations can reduce operational and tax costs.
Adaptation, Not Reaction
The fiscal changes in Romania in 2025 cannot be ignored, but neither can be treated with panic. Agile entrepreneurs, who inform themselves and adapt quickly, will find smart and effective solutions to continue their business without sacrificing profitability.
Whether you choose to optimize your local tax structure or explore international options such as setting up a company in a modern business hub like Dubai, the key is smart planning and expert advice.
