The new tax changes applicable from 2026 raise significant legal challenges for companies in Romania, especially with regard to the taxation of buildings, land, motor vehicles and dividends.
Tax changes have a significant impact on companies. Photo by Shutterstock
According to business lawyers, the fiscal changes applicable from January 1, 2026 have a significant impact on the business environment in Romania and mainly aim at the increase or recalibration of some local and central taxes, the change in the calculation method of the tax on buildings, land and motor vehicles owned, as well as substantial changes regarding the tax on dividends and the regime of micro-enterprises.
These measures aim to increase budget revenues, but generate additional costs and legal risks for each commercial company, especially in the context of the intensification of tax controls, business lawyers emphasize.
Building tax changes in 2026 for companies
The legislative changes applicable starting from 2026, in the context of the fiscal reform brought by Law no. 239/2025, maintain the basic rules regarding the calculation of the tax on buildings owned by legal entities, but accentuate the fiscal impact by establishing high rates at the local level and by strictly referring to the updated taxable value of the building.
According to art. 460 para. (1) of the Fiscal Code, for residential buildings owned or held by legal entities, the building tax is calculated by applying a rate between 0.08% and 0.2% on the taxable value of the building, a rate established by a decision of the local council. At the level of the municipality of Bucharest, this competence rests with the General Council of the Municipality of Bucharest.
By the decision adopted for the year 2026 at the level of the municipality of Bucharest, a quota of 0.2% was established for residential buildings owned or held by legal entities, respectively 1.5% for non-residential buildings. The taxable value is determined, according to art. 460 para. (6) of the Fiscal Code, depending on the value entered in the tax records, the value resulting from an evaluation report drawn up by an authorized appraiser, the final value of the construction works in the case of new buildings or the value resulting from the ownership transfer documents. This value must be updated once every 5 years, and failure to comply with this obligation attracts the application of a 5% quota, provided prior notification by the fiscal body. In practice, these rules lead to a significant increase in the tax owed by commercial companies, especially in the case of office buildings, commercial premises and industrial buildings located in large urban centers.
The new rules for the taxation of motor vehicles owned by legal entities
Starting from 2026, the tax regime applicable to cars owned by legal entities is substantially modified, generating a generalized increase in the tax burden. The legislation introduces a new vehicle tax calculation mechanism, based on the vehicle's cylinder capacity, by multiplying each group of 200 cm³ or fraction by a legally established amount, and public authorities will use an integrated data exchange system regarding pollution standards. The new regulation introduces distinct values for motor vehicles according to the pollution standard (E0–E3, E4, E5, E6). Thus, more polluting vehicles are taxed more severely, while those with higher standards (E5–E6) benefit from lower values compared to E0–E3.
An important change concerns hybrid cars. Previously, the reduction applied to all hybrid means of transport, without differentiation according to the level of emissions. In the new form, the reduction is expressly conditioned by the fact that the hybrid vehicle must have carbon dioxide emissions lower than or equal to 50 g/km, thus limiting the scope of the tax facility only to hybrids with low environmental impact. Also, the new regulation states that the discount is a maximum of 30% from 50%. As a result, most companies that own hybrid vehicles will pay higher taxes than in previous years. At the same time, a fixed annual tax for electric vehicles is introduced for the first time, in the amount of 40 lei, applicable regardless of their capacity or value.
Land taxation and how illegal taxation decisions can be challenged
The land tax owed by legal entities is established annually according to art. 465 of the Fiscal Code depending on the area of the land, the category of use, the rank of the locality and the area in which it is located, and the taxable value and the amount of the tax are established by a decision of the local council, within the limits provided by the Fiscal Code.
For land located in urban areas, the tax differs depending on the rank of the locality and the tax zone, applying fixed amounts per hectare or fractions of a hectare, differentiated for land with constructions and for the other categories of use. In the case of non-village lands, the tax is calculated according to the category of use, by applying values established by law and adjusted by correction coefficients, without taking into account the urban area. Considering that the establishment of the taxable value and the tax zones is the attribute of the local council or, in the case of Bucharest, of the General Council of the Municipality of Bucharest, differences in interpretation or classification errors can lead to increased tax obligations for commercial companies.
For example, a legal entity owns a plot of land located in the inner city of the city of Bucharest, Sector 2, zone B, rank I, registered in the agricultural register under the land use category with constructions. According to the Decision of the General Council of the Municipality of Bucharest no. 514/2025, for intra-village lands included in zone B, the tax is set at the level of 13,528 lei per hectare. In this case, a tax of 6,764 lei is initially obtained for 0.50 hectares. Applying the correction coefficient for rank I, which is 5.00, the final annual tax due for this land amounts to 33,820 lei.
According to tax legislation, the taxpayer who considers that the tax decision issued by the tax authority is illegal has the right to file an appeal within 45 days of notification. The appeal must contain the factual and legal grounds and be accompanied by supporting documents supporting the request. After exhausting the administrative appeal, the taxpayer can file an annulment action according to art. 8 of the Law on Administrative Disputes 554/2004, regarding both the decision to resolve the administrative appeal, giving reasons for procedural defects, substantive errors or incorrect calculation. Also, according to art. 14 Law 554/2004, it is possible to request the suspension until the substance, which blocks the forced execution until the judgment of the court of substance, the request being submitted within a maximum of 30 days. This procedure provides effective legal protection against foreclosure based on illegal tax acts.
Dividend tax and the abolition of the 3% tax rate
Starting from January 1, 2026, the dividend taxation regime was modified by increasing the tax rate from 10% to 16%, according to art. 43 para. (2) of the Fiscal Code. This change has a direct impact on the tax planning of entrepreneurs, as the net income obtained from the distribution of dividends is significantly diminished. Commercial companies that based their financial strategies on the old tax rates are forced to recalculate their income and expenditure budgets, considering the increase in the tax burden and the corresponding reduction in financial flows available to associates.
At the same time, starting from 2026, the 3% tax rate applicable to micro-enterprises was eliminated, and the income ceiling for inclusion in this regime was reduced from 250,000 euros to 100,000 euros, according to article 47 letter. c) from the code. Although the removal of the 3% quota may represent an advantage for micro-enterprises with revenues below the new ceiling, exceeding it automatically attracts the application of the profit tax regime, with significant fiscal consequences. From a legal perspective, companies are obliged to carefully analyze contracts and adapt commercial clauses to the new fiscal reality, so as to maintain their financial balance and avoid the risks generated by non-compliance with the new legal obligations.
Therefore, the new fiscal measures must be treated very carefully to avoid financial imbalances and significant legal risks for any type of commercial company, said lawyer Dr. Radu Pavel, adding that the new taxes and fees applicable from 2026 significantly change the fiscal framework in which commercial companies operate in Romania, affecting the taxation of buildings, land, vehicles, dividends and the regime of micro-enterprises. Adapting to these changes requires careful legal analysis and a well-founded tax strategy to comply, prevent disputes and protect the economic interests of companies in the new legislative context.
