⚖️ Comparisons & guides

Setting Up a Holding Company in Romania

Romania can be an attractive base for a holding company within the EU — competitive taxes, EU membership, and a straightforward SRL structure that foreigners can own 100%.

What a holding company does

A holding owns shares in other companies (subsidiaries) and typically receives dividends and capital gains from them, rather than trading directly. It’s used to consolidate ownership, manage risk, and structure profits efficiently.

Why Romania

• EU member — access to EU directives and the single market.
• Competitive corporate tax — standard profit tax of 16%; small companies may use the micro-company regime (1% on turnover, conditions apply).
• Participation exemption — under conditions (minimum shareholding and holding period), dividends and gains from qualifying subsidiaries can be exempt. Specific thresholds and rules apply.

Important: participation-exemption conditions, rates and the micro regime change periodically and have technical requirements. Always confirm the current rules with an advisor before structuring — this article is a general overview.

Typical structure

• A Romanian SRL acts as the holding;
• it owns shares in one or more operating companies (in Romania or abroad);
• profits flow up as dividends, taxed per the applicable rules.

Is a holding right for you?

A holding adds value when you have multiple companies, partners, or significant retained profits. For a single small operating business, a plain SRL is usually enough — see company formation in Romania and our Romania company tax guide.

Talk to us

We help non-residents structure holdings and operating companies correctly. Book a free call.