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EU Pay Transparency Directive implementation in Romania showing salary transparency and compliance changes effective in 2026

EU Pay Transparency Directive in Romania: Key Changes in 2026

 

 

 

EU Pay Transparency Directive 2026: What Romanian Employers Must Know

A Practical Compliance Guide for the June 7 Deadline

The EU Pay Transparency Directive (2023/970) is a landmark regulation requiring all EU employers to disclose salary information, prohibit salary history questions, and provide gender-disaggregated pay data. By June 7, 2026, Romania must transpose this Directive into national law, forcing fundamental changes to recruitment practices, compensation structures, and pay reporting systems.

For Romanian employers with 100+ employees, mandatory gender pay gap reporting begins in 2027. For all employers, new recruitment transparency and employee information rights take effect immediately upon transposition. This guide explains what you need to do, when you need to do it, and how to prepare before Romanian implementing legislation is finalized.


Why This Matters: The Directive’s Generational Impact

The EU Pay Transparency Directive represents a fundamental shift in how employers must approach compensation. Instead of responding to individual discrimination complaints, employers must now proactively disclose pay information, systematically measure gender pay gaps, and explain or remedy any unjustified differences.

The persistent gender pay gap across the EU stands at 12–13%, representing hundreds of billions in lost earnings for women annually. The Directive eliminates the opacity that has historically concealed discrimination. Once pay data is disclosed through mandatory reporting, the burden shifts to employers to justify gaps or face enforcement action. For detailed information on the Directive’s scope and requirements, refer to the Council of the European Union’s pay transparency guidance.

For Romanian HR and legal teams, this is not merely a compliance checkbox. The Directive requires fundamental changes to how you recruit, structure compensation, evaluate job roles, and communicate with employees. Organizations that delay preparation will face compressed timelines for system upgrades, policy changes, and compensation audits once Romanian law is finalized in late 2026. Our employment law team can guide you through these changes.


Video: Understanding the EU Pay Transparency Directive


Key Deadlines: What You Need to Know

Romania must transpose the Directive by June 7, 2026. However, expect Romanian implementing legislation to be published only in late April–May 2026, leaving employers just 4–6 weeks to implement before the deadline. For comprehensive information on the Directive’s requirements and the complete legislative text, consult the official EU sources.

Reporting Thresholds by Employer Size

Employer WorkforceReporting FrequencyFirst Report DueStatus
250+ EmployeesAnnually2027Mandatory
150–249 EmployeesEvery 3 Years2027Mandatory
100–149 EmployeesEvery 3 Years2031 (based on 2030 data)Mandatory
Under 100 EmployeesN/AN/AVoluntary (for now)

Important: Even if your company is under 100 employees, you must still comply with recruitment transparency, employee pay request rights, and the prohibition on salary history questions. Romania may lower the reporting threshold in its implementing legislation, so monitor draft law closely.


Romania’s Current Progress and Risks

As of January 2026, Romania has not yet published draft transposition legislation. This creates significant risks for employers:

  • Delayed Clarity: Without guidance from Romanian authorities, employers must interpret Directive obligations directly
  • Compressed Timeline: Only 4–6 weeks between final law and the June 7 deadline for implementation
  • System Readiness: HRIS platforms, payroll systems, and recruitment tools may require urgent upgrades
  • Potential Deviations: Romania may introduce stricter requirements than the EU minimum or align the Directive with existing Labour Code provisions in unexpected ways

Practical implication: Do not wait for final Romanian law to begin preparation. Start now using the Directive’s minimum requirements, knowing that national law may impose additional obligations.


Core Requirement 1: Recruitment Transparency (Applies to All Employers)

Mandatory Salary Disclosure

Employers must provide applicants with the starting salary or a salary range for the position. This disclosure must be provided before the first interview (optionally in the job advertisement). Generic terms like “competitive salary” or “negociabil” (negotiable) are insufficient.

The disclosed range must:

  • Be based on objective, gender-neutral criteria
  • Reflect actual compensation for the role
  • Enable informed salary negotiation
  • Be provided in the recruitment language (for Romania, in gender-neutral Romanian terminology)

Ensure your employment contracts and salary structures comply with Romanian requirements while meeting Directive obligations.

The Ban on Salary History Questions

Employers are prohibited from asking candidates about their current or previous pay—in any form, at any stage of recruitment. This applies to:

  • Phone screens and interviews
  • Application forms and background checks
  • References from previous employers
  • Any other recruitment contact

This prohibition is designed to prevent the perpetuation of historical pay discrimination. Instead, recruiters may discuss salary expectations aligned with the role’s requirements and objective criteria (experience, qualifications, skills). For detailed guidance on recruitment practices and employment law, consult with our team.

Gender-Neutral Job Postings

Job titles and vacancy notices must be gender-neutral. For Romanian employers, this means using terms like “Specialist” rather than gendered variants. Any AI-based screening tools must be audited to ensure non-discriminatory outcomes.


Core Requirement 2: Employee Information Rights (Applies to All Employers)

The Right to Request Pay Data

Every employee has the right to request, in writing:

  • Their individual pay level
  • Average pay levels for workers performing the same work or work of equal value, broken down by gender

Employers must respond within two months with information covering all remuneration components: base salary, bonuses, allowances, overtime, benefits, and other forms of pay.

This represents a significant change for Romanian companies, where employees have historically had limited rights to request comparative pay data. Our employment law specialists can help you establish compliant pay request response procedures.

Prohibition of Pay Secrecy Clauses

Any contractual clause that prevents employees from discussing pay for equal pay purposes is prohibited and unenforceable. This includes:

  • Non-disclosure agreements restricting pay disclosure
  • Confidentiality clauses protecting compensation information
  • Disciplinary provisions threatening retaliation for discussing pay

Employers must also inform employees annually of their right to request pay information and the prohibition against retaliation. Review your existing key employment contract clauses to ensure compliance with this prohibition.

Critical Point: Employees may freely discuss their compensation with colleagues and unions. Attempting to enforce pay secrecy clauses will expose you to liability.


Core Requirement 3: Mandatory Pay Gap Reporting (For Employers with 100+ Staff)

What Must Be Reported

Employers with 100+ employees must report:

  • Mean and median gender pay gaps (the average and midpoint difference between male and female pay)
  • Gender pay gaps in variable pay (bonuses, commissions, allowances)
  • Gender distribution of variable pay recipients (showing who receives bonuses)
  • Gender distribution across pay quartiles (showing concentration of women/men in low and high-wage roles)
  • Pay gaps by worker category (for workers doing the same work or work of equal value)
  • Gender distribution in management roles (senior and junior levels)

The 5% Threshold: A Joint Pay Assessment is required if a gender pay gap of 5% or more persists for six months and cannot be justified. Gaps below 5% may be presumed justified, but the burden falls on you to prove it.

Defining “Work of Equal Value”

Work of equal value does not require identical job titles. The Directive requires assessment using four mandatory factors:

  • Skills: Formal qualifications, experience, knowledge, and soft skills
  • Effort: Mental, emotional, and physical exertion
  • Responsibility: Scope of decision-making and authority
  • Working conditions: Environment, hazards, schedule flexibility

This is particularly important for Romanian employers, where roles traditionally performed by women (administrative, customer service, teaching, care) have historically been undercompensated despite requiring substantial skill and effort. Soft skills must be valued fairly and without gender bias.


The Joint Pay Assessment: When Gaps Exceed 5%

If your gender pay gap reaches 5% or more and cannot be justified with objective criteria, a Joint Pay Assessment (JPA) becomes mandatory. A JPA is a collaborative audit conducted with worker representatives (unions or employee committees) to identify root causes and develop a remedial action plan.

Implications for Romanian Employers

Romania has active trade unions including Confederatia Nationala a Sindicatelor (CNS) and industry-specific unions. Prepare for:

  • Early union engagement: Initiate dialogue with union representatives now about pay equity reviews
  • Transparency demands: Unions will have legal rights to access pay-setting methodologies and compensation data
  • Collective pressure: Once pay gap data becomes public (2027), unions may file collective discrimination complaints or demand wage adjustments
  • Remedial negotiations: You will be required to collaborate on solutions, not make unilateral decisions

Understanding your obligations regarding employment termination and worker protections is essential during remediation discussions.


Penalties and Enforcement

The Directive requires that member states establish penalties that are effective and dissuasive. However, the Directive does not specify penalty amounts, percentages, or fixed sanction levels. The type, structure, and level of penalties will be determined exclusively by Romanian implementing legislation.

Expected enforcement mechanisms in Romanian law may include:

  • Administrative fines: Amount and level to be set by Romania
  • Corrective orders: Mandatory remediation plans with specific timelines
  • Exclusion from public procurement: Potentially barring non-compliant employers from government contracts
  • Uncapped individual compensation: Employees may sue for back pay and damages without statutory limits
  • Reputational consequences: Public disclosure of pay gap reports and compliance violations

Burden of Proof Reversal: Where an employee establishes facts suggesting pay discrimination, the burden shifts to you to prove compliance. Failure to meet transparency or reporting obligations may create a presumption of discrimination.


Romania’s Current Legal Framework vs. the Directive

What Romania Already Has ✅

What Romania Currently Lacks ❌ (Required by Directive)

  • Mandatory pay transparency in recruitment
  • Employee rights to request comparative pay data
  • Systematic gender pay gap reporting for large employers
  • 5% threshold mechanism triggering automatic audits
  • Explicit prohibition on salary history questions
  • Prohibition of pay secrecy clauses

The Directive will require substantial legislative change, particularly for employers with 100+ employees and multinational groups operating Romanian entities.


Interactive Compliance Timeline

Click milestones to expand tasks and track readiness by priority.

June 7, 2026
Transposition Effective
2027
Reporting Starts (150+ & 250+ employees)
2031
Reporting Starts (100–149 employees)
Overall Readiness by Priority:
 
 
 

Your 2026 Readiness Timeline

PeriodAction ItemsPriority
January–February 2026Monitor draft Romanian law publication; assess how national law may differ from EU minimum; begin pay equity audit confidentially with legal counsel🔴 High
February–March 2026Complete privileged pay equity audit; identify systemic gaps and baseline data; document findings with legal protection🔴 High
March–April 2026Update job postings and ATS; remove salary history questions; implement gender-neutral job architecture; train recruitment teams🔴 High
April–May 2026Assess HRIS capabilities for automated pay gap reporting; budget for system upgrades; prepare pay request response process (2-month deadline)🟡 Medium
May–June 2026Implement updated policies once Romanian law is finalized; establish pay equity remediation plans; engage unions on assessment timeline🔴 High
June–December 2026Monitor 2026 pay data; calculate preliminary gender pay gaps; prepare for mandatory reporting; collect required supporting documentation🟡 Medium
January–June 2027Submit first mandatory report (for 150+ employee companies); provide to worker representatives; prepare for JPA if gaps exceed 5%🔴 High

Key Dependency: All timelines depend on Romania’s publication of implementing legislation by late April 2026. Do not wait; use the Directive’s minimum requirements as your guide now.


Romania-Specific Compliance Considerations

Language and Documentation Requirements

For Romanian employers:

  • Job postings: Must use gender-neutral terminology in Romanian (e.g., “specialist,” not gendered variants)
  • Pay gap reports: Will likely be submitted in Romanian with official translations if operating in multiple languages
  • Internal policies: Compensation and recruitment documentation must be prepared in Romanian and aligned with national law
  • Employee communications: Annual pay transparency notices must be provided in Romanian

Multinationals Operating in Romania

If your parent company is in another EU country:

  • Group alignment: Align Romanian compensation architecture with group-wide standards for consolidated reporting
  • Legislative monitoring: Monitor Romanian draft law closely—it may differ from other EU countries
  • Separate compliance: Prepare separate documentation if national law introduces deviations
  • Payroll segregation: Ensure HRIS can generate reporting by geographical location (Romania vs. other countries)

Union and Worker Representative Engagement

Initiate early dialogue with:

Key discussion points:

  • Pay equity review methodology
  • Remediation approaches and compensation adjustments
  • Role in Joint Pay Assessment processes
  • Transparency about pay-setting logic and job evaluation systems

Frequently Asked Questions

Q: Does the Directive apply to my Romanian company?

Yes. The Directive applies to all public and private sector employers operating in Romania, regardless of headquarters location or company size. Recruitment transparency and employee information rights apply to all employers from June 7, 2026 onward. Mandatory pay gap reporting applies only to employers with 100+ employees (with phase-in based on size).

Q: Are small companies (under 100 staff) exempt?

Small companies are exempt from mandatory public reporting. However, they must still comply with:

  • Salary disclosure in recruitment (all employers)
  • Ban on salary history questions (all employers)
  • Employee rights to request pay information (all employers)
  • Prohibition of pay secrecy clauses (all employers)

Romania may lower the reporting threshold in implementing legislation, so monitor draft law closely. Learn more about employment contract structures to ensure compliance.

Q: What constitutes “remuneration” for pay gap calculations?

Remuneration includes all pay components:

  • Basic wage or salary
  • Bonuses (performance, annual, signing)
  • Overtime and shift premiums
  • Housing, transportation, and meal allowances
  • Pension contributions (employer and employee)
  • Statutory sick pay, maternity pay, and benefits
  • Stock options and equity awards
  • Life insurance and health insurance premiums

The pay gap must be calculated across this full package. This is critical for Romanian employers where bonuses and allowances may vary significantly by gender.

Q: Can I negotiate salary after disclosing a range?

Yes. Disclosure does not prevent negotiations. Parties remain free to agree on a salary outside the disclosed range, provided the final agreed salary is gender-neutral and based on objective criteria (experience, qualifications, role-specific requirements).

Q: How long do I have to respond to an employee’s pay request?

You must provide requested information in writing within two months of the request. The response must include the employee’s individual pay and average pay for the equal value category, broken down by gender. Failure to respond within two months is a compliance violation that may trigger enforcement action.

Q: Can employees discuss their pay with each other?

Yes. Employees have the explicit right to compare compensation with colleagues and union representatives. Any contractual clause restricting pay disclosure for equal pay purposes is prohibited and unenforceable. Employers cannot retaliate against employees for discussing pay.

Q: What happens if my gender pay gap is 5% or higher?

A 5% or higher unexplained gap triggers a Joint Pay Assessment. You will have six months to either justify the gap with objective criteria or remediate it through compensation adjustments. If the gap is not addressed, the formal JPA process begins with worker representatives to identify root causes and agree on remedies. Failure to remedy may result in enforcement action.

Q: What are the penalties for non-compliance?

Romania will set its own fine levels. The Directive requires penalties to be effective and dissuasive. Expected enforcement mechanisms may include administrative fines, corrective orders, potential exclusion from public procurement, individual compensation claims for back pay, and reputational consequences.

Q: Are soft skills counted when assessing “work of equal value”?

Yes. The Directive explicitly requires that relevant soft skills (communication, emotional intelligence, customer service capability) must not be undervalued in equal value assessments. This is critical for Romania, where traditionally female-dominated roles in administration, teaching, and care may have been undercompensated despite substantial skill requirements.

Q: What if Romania misses the June 7, 2026 deadline?

The European Commission may initiate infringement proceedings. More importantly, Romanian courts may begin applying Directive requirements through interpretation of existing labor law even before formal transposition. Employers cannot claim a “transition period” if the government lags. Begin preparation now using Directive requirements as your baseline.


Disclaimer: This article is provided for general informational purposes only and does not constitute legal advice. The analysis is based on EU Directive 2023/970 and Romanian law as of January 2026. Specific obligations may vary depending on individual circumstances, the final Romanian implementing legislation, and administrative practice. Professional legal guidance should be obtained before taking action based on this content.

IP protection for creators and startups in Romania, illustrated by a shield with the Romanian map, technology and innovation icons

IP Protection in Romania for Startups & Creators | Legal Guide

 

 

 

IP Protection for Creators & Startups in Romania

 

 

 

IP Protection for Creators & Startups in Romania

Beyond Registration – A Strategic Legal Perspective

Romanian intellectual property law is aligned with EU legislation and protects patents, trademarks, copyrights, industrial designs, and trade secrets through distinct legal regimes. Trademark and patent protection require registration with the Romanian State Office for Inventions and Trademarks (OSIM) or relevant EU authorities. Copyright protection arises automatically upon the creation of an original work and does not require registration, although voluntary evidentiary deposit may be used.

Ownership of intellectual property depends on the type of right and contractual arrangements. Software created by employees generally vests in the employer unless otherwise agreed, while other copyrighted works require explicit assignment. Contractors do not transfer intellectual property rights automatically.



Why Intellectual Property Is No Longer a Formality in Romania

For many founders and creators entering the Romanian market, intellectual property is still perceived as a bureaucratic checkbox: register a trademark, maybe file a patent, move on. This mindset is outdated and increasingly dangerous.

In today’s Romanian and EU business environment, IP is not merely a legal formality. It is a strategic asset, a valuation driver, and often a risk factor capable of blocking investment, scaling, or exit. For startups, creative professionals, and technology-driven companies, intellectual property is no longer something you “deal with later”—it is something that shapes the business from day one.

Romania offers a robust, EU-aligned IP framework. Yet many disputes, failed funding rounds, and blocked transactions stem not from lack of law, but from poor IP decisions made early. This guide explains how IP actually works in Romania, where founders make mistakes, and how a strategic approach changes outcomes.


Understanding Intellectual Property in Romania: The Practical Reality

At a conceptual level, intellectual property refers to creations of the mind: inventions, software, brands, designs, artistic works, and confidential know-how. In practice, Romanian IP law divides these creations into distinct legal regimes, each with its own logic, risks, and enforcement mechanisms.

A recurring mistake among startups is treating IP as a single category. It is not. A trademark does not behave like copyright. Software is not treated like a patent. Trade secrets disappear the moment confidentiality is lost. Understanding these differences is essential, because the law applies differently depending on the asset. For expert guidance on intellectual property protection in Romania, consult with experienced legal advisors.

Key Institutions in Romanian IP

  • OSIM – State Office for Inventions and Trademarks, responsible for patents, trademarks, and industrial designs
  • ORDA – Romanian Copyright Office, administers copyright registration and evidentiary matters
  • Romanian Courts – enforce IP rights through civil and criminal proceedings
  • EUIPO – European Union Intellectual Property Office, handles EU trademark and design registrations

Startups and IP: Where Strategy Matters More Than Law

The Early-Stage IP Trap

Most Romanian startups fail to address IP strategically at the incorporation or MVP stage. Founders focus on product-market fit and funding, assuming legal structuring can wait. In reality, early IP decisions determine whether later protection is even possible.

Common irreversible mistakes include:

  • Public disclosure before patent assessment
  • Launching under an unprotected or unregistrable brand
  • Using contractors without IP assignment clauses
  • Mixing open-source code without license control

These are not technicalities. They directly affect ownership, enforceability, and valuation.

IP as an Investment Filter

From an investor’s perspective, IP is not about certificates—it is about control and exclusivity. During due diligence, investors focus on:

  • Who owns the code
  • Whether trademarks are registered or merely used
  • Whether patents are filed or still possible
  • Whether key assets can be legally transferred

A startup with weak IP rarely fails because of infringement; it fails because no one is willing to invest in legally uncertain assets. For a deeper analysis of IP due diligence in startup funding, see our comprehensive IP protection guides.


Trademarks in Romania: Brand Protection as Market Control

In Romania, trademarks protect signs capable of distinguishing goods or services: names, logos, slogans, and sometimes non-traditional marks. Protection is obtained only through registration—use alone offers limited and risky protection.

Strategic Timing of Trademark Registration

Many founders wait until traction appears. Legally, this is a mistake. Romania applies a first-to-file system, meaning that the party who files first acquires rights, regardless of who used the mark first.

Delays can result in:

  • Forced rebranding
  • Opposition proceedings
  • Loss of domain or social media alignment

National vs EU Trademark Protection

Romanian businesses may choose:

  • National registration via OSIM: Focused protection with faster enforcement locally
  • EU-wide registration via EUIPO: Broader coverage but higher risk of opposition

Copyright in Romania: Automatic Protection, Complex Ownership

Copyright Exists Without Registration—But Ownership Is Not Automatic

Under Romanian law, copyright arises automatically upon creation of an original work. No registration is required. This includes software, written content, designs, audiovisual works, and databases.

However, ownership and economic rights are frequently misunderstood.

Employees vs Contractors: A Legal Fault Line

Romanian law draws a sharp distinction:

Software created by employees: Economic rights generally belong to the employer, unless otherwise agreed

Other copyrighted works: Economic rights remain with the author unless expressly assigned

Contractors: Nothing transfers automatically. Without a written assignment, the company may lawfully use the work—but does not own it

This distinction becomes critical in litigation, exits, and acquisitions.

Evidentiary Registration and ORDA

Romania allows voluntary deposit or registration of works with ORDA for evidentiary purposes. This does not create rights, but it can significantly strengthen proof of authorship and creation date in disputes.


Patents in Romania: Powerful, Rare, and Often Misused

Patent protection in Romania follows EU standards: novelty, inventive step, and industrial applicability.

Software and Patents: The Hard Truth

Software as such is not patentable. Patent protection is available only where software contributes to a technical solution producing a technical effect.

Many startups assume their algorithm is patentable. Most are wrong. A proper patentability assessment must be conducted before disclosure, or the opportunity is permanently lost.

National vs European Patents

Romanian inventors may file:

  • National patents via OSIM: Lower cost, focused protection
  • European patents via the European Patent Office: Broader coverage, higher cost

The choice depends on commercial scope, budget, and enforcement strategy.


Trade Secrets: The Most Fragile IP Asset

Trade secrets protect confidential business information with economic value, provided reasonable secrecy measures are in place.

In practice, Romanian courts examine:

  • Confidentiality clauses
  • Access limitations
  • Internal security measures

Once information becomes public, protection is lost—irreversibly. Protect your trade secrets with proper legal frameworks. Learn more about confidentiality agreements and trade secret protection.


Licensing and Monetization: Turning IP into Revenue

IP has little value if it cannot be commercialized.

Licensing allows IP owners to retain ownership while granting usage rights. Romanian law recognizes exclusive and non-exclusive licenses, sublicensing, and cross-licensing arrangements.

These contracts must be carefully drafted to avoid antitrust, tax, and enforcement issues. For startups, licensing is often the bridge between innovation and market entry.


Enforcement of IP Rights in Romania: What Actually Works

Enforcement options include:

  • Civil litigation: Injunctions and damages
  • Criminal proceedings: For counterfeiting and piracy
  • Customs measures: Seizure of infringing goods at the border

In practice, early intervention and evidence preservation matter more than aggressive litigation. Many disputes are resolved through injunction pressure rather than final judgments.


IP Audits: The Missing Discipline in Romanian Businesses

Regular IP audits are still rare in Romania, yet they are one of the most effective risk management tools.

An IP audit clarifies:

  • Ownership of all IP assets
  • Validity and enforceability
  • Licensing obligations
  • Exposure to infringement claims

Audits are essential before funding, mergers, or international expansion.


The Future of IP in Romania: From Formal Rights to Strategic Assets

As Romania’s startup ecosystem matures, IP disputes are shifting from registration issues to ownership, valuation, and enforcement complexity.

AI-generated content, software licensing conflicts, and cross-border enforcement will dominate future litigation.

Businesses that treat IP strategically—not administratively—will have a decisive advantage. For guidance on developing a comprehensive IP strategy, consult with our IP and technology law team.


Final Thoughts: IP as Business Infrastructure

In Romania, intellectual property is not just about protecting ideas. It is about controlling risk, enabling growth, and securing value.

The law provides the tools, but strategy determines outcomes.

For creators and startups, the question is no longer whether to protect IP—but whether your IP strategy is strong enough to support your ambitions. Schedule a consultation with our legal team to assess your IP position and develop a protection strategy tailored to your business.


Frequently Asked Questions

Q: What types of intellectual property can be protected in Romania?

Romanian law protects patents, trademarks, industrial designs, copyrights, and trade secrets. Each category follows a different legal regime, registration logic, and enforcement mechanism. Choosing the correct form of protection is essential for enforceability and valuation.

Q: Is trademark registration mandatory in Romania?

Yes, effective trademark protection requires registration. Romania applies a first-to-file system, meaning prior use alone offers limited protection and does not prevent third parties from registering identical or similar marks.

Q: Can startups rely only on EU trademark or patent registration?

EU registrations provide broader territorial coverage, but national Romanian enforcement, local language proceedings, and procedural rules still apply. Many businesses use a combined national and EU IP strategy.

Q: Is software protected by copyright or patent law in Romania?

Software is automatically protected by copyright as an original work. Patent protection is available only when software forms part of a technical invention that produces a technical effect and meets patentability criteria.

Q: Who owns intellectual property created by employees in Romania?

Ownership depends on the IP type. For employee-created software, economic rights generally vest in the employer unless otherwise agreed. For other works, rights remain with the author unless expressly assigned by contract.

Q: Are contractors’ works automatically owned by the company?

No. Romanian law does not provide automatic transfer of IP rights from contractors. Without a written assignment, the contractor usually retains ownership, even if the company paid for the work.

Q: Do I need to register copyright in Romania?

No registration is required for copyright protection. Voluntary deposit or registration with ORDA is available for evidentiary purposes only and does not create rights.

Q: How long does IP protection last in Romania?
IP TypeDuration
Trademarks10 years, renewable indefinitely
PatentsUp to 20 years
CopyrightGenerally 70 years after the author’s death
Industrial DesignsUp to 25 years
Q: How are IP rights enforced in Romania?

Rights can be enforced through civil litigation, criminal proceedings in cases of counterfeiting or piracy, and customs measures to stop infringing goods at the border.

Q: What is an IP audit and why is it important?

An IP audit reviews ownership, registrations, licenses, and risks related to intellectual property. It is essential before investment, mergers, international expansion, or restructuring.

Q: When should a startup involve an IP lawyer in Romania?

Ideally before public disclosure, branding decisions, fundraising, or signing development contracts. Early legal input prevents irreversible IP loss and costly disputes.

Q: Can foreign companies protect IP in Romania?

Yes. Foreign companies may register and enforce IP rights in Romania directly or through EU mechanisms, subject to the same legal standards and enforcement rules.

Q: How do trade secrets differ from other IP rights?

Trade secrets are protected only as long as confidentiality is maintained. Once information becomes public, protection is permanently lost, unlike registered IP rights.

Q: Are domain names and social media handles protected as IP?

Domain names and handles are not IP rights themselves but may infringe trademarks or be protected indirectly through trademark enforcement and unfair competition law.

Q: Does Romanian IP law apply to AI-generated content?

Romanian law currently protects works created by human authors. AI-generated content raises unresolved legal questions, particularly regarding authorship and ownership, and should be assessed case by case.


Disclaimer: This article is provided for general informational purposes only and does not constitute legal or intellectual property advice. The analysis is based on Romanian IP law and EU legislation as of January 2026. Application of the law may vary depending on individual circumstances, administrative practice, and subsequent guidance or case law. Professional advice should be obtained before taking any action based on this content.

Romania tax debt rescheduling 2026 under Law 239/2025, illustrated by a judge’s gavel, financial charts, digital tax systems, and Romanian flag symbolizing legal and fiscal reform.

Romania Tax Debt Rescheduling 2026 – Law 239/2025 Explained

 

Romania Debt Rescheduling 2026: Law 239/2025 Explained

Romania is entering a more restrictive fiscal environment in 2026 following the adoption of Law no. 239/2025, published in the Official Gazette no. 1160 of December 15, 2025 and effective as of December 18, 2025.

The reform forms part of a broader effort to strengthen budgetary discipline and improve tax collection, in line with Romania’s European fiscal commitments.

While formally structured as amendments to the Fiscal Procedure Code, the new rules introduce material changes to the practical functioning of tax debt rescheduling.

Mechanisms previously characterized by reduced guarantees and extended tolerance periods have been replaced by stricter eligibility criteria, enhanced enforcement safeguards for the tax authority, and increased personal involvement of individuals controlling indebted companies.


Key Takeaways for Romanian Taxpayers in 2026

  • Personal Guarantees in Classic Rescheduling: Article 193¹ introduces a mandatory fideiusiune (personal guarantee) for classic tax rescheduling, creating a contractual extension of liability for the guarantor for the duration of the arrangement.
  • Restricted Access to Simplified Rescheduling: Simplified rescheduling remains available only for lower debt thresholds (up to 400,000 lei for companies and 100,000 lei for individuals) and is subject to higher interest costs.
  • Shortened Compliance Period: The maximum delay for settling current tax obligations during a rescheduling plan has been reduced from 180 days to 60 days.
  • Expanded Fiscal Inactivity Grounds: Failure to maintain a Romanian payment account or submit financial statements may lead to fiscal inactivity status and subsequent administrative procedures.
  • Increased Digital Oversight: SAF-T, e-Factura, and e-VAT reporting data are increasingly used in compliance assessments and rescheduling analyses.


1. Macroeconomic Background of the Reform

Law no. 239/2025 must be viewed within Romania’s broader macroeconomic context.

Analyses published by the National Bank of Romania and the Fiscal Council point to persistent budget deficits, reduced fiscal space, and rising public debt servicing costs.

In prior years, simplified tax rescheduling was frequently used by companies as a liquidity management tool.

The revised framework signals a policy shift toward ensuring predictability of revenue collection and limiting prolonged reliance on deferred payment of public obligations.

For more information on how this affects business planning, consult our corporate law services or see our company formation guide.

2. Personal Guarantees and Contractual Extension of Liability

The most significant change introduced by Law 239/2025 is Article 193¹ of the Fiscal Procedure Code, which requires the submission of a personal guarantee (fideiusiune) in classic tax rescheduling arrangements.

This mechanism does not abolish the principle of limited liability under company law. Instead, it creates a contractual exception whereby a natural person assumes personal liability toward the tax authority for the fulfillment of the rescheduling obligations.

For detailed guidance on this mechanism, consult the National Agency for Fiscal Administration (ANAF) official guidance.

Who May Be Requested to Guarantee

In practice, tax authorities may require the guarantee to be provided by the individual exercising effective control over the company, typically corresponding to the Ultimate Beneficial Owner (UBO) as defined under Law no. 129/2019 on the prevention and combating of money laundering.

For guidance on shareholder responsibilities, see our shareholder rights guide or shareholder agreement documentation. Guarantees from individuals without substantive decision-making authority may be subject to additional scrutiny.

Legal Form and Enforcement Effects

The fideiusiune must be executed in authentic (notarial) form.

Under Romanian law, such instruments generally qualify as enforceable titles. In the event of default, enforcement measures may be initiated in accordance with the Fiscal Procedure Code and applicable procedural safeguards, depending on the nature of the assets involved.

Applicable Deadlines

The law introduces relatively short timeframes for submitting guarantees, ranging from several days following issuance of the fiscal attestation certificate to longer periods following preliminary approval.

Failure to comply may result in rejection of the rescheduling request and continuation of standard collection procedures.

For timely coordination with notaries, review the Romanian Notaries Chamber resources.

3. Simplified Rescheduling: Thresholds and Conditions

Simplified rescheduling under Article 209¹ remains available, but under narrower eligibility criteria than in prior years.

Applicable Monetary Limits

  • Legal entities: 5,000 – 400,000 lei
  • Individuals and unincorporated entities: 500 – 100,000 lei

Debts exceeding these thresholds generally require classic rescheduling, involving additional documentation, financial analysis, and guarantees.

For legal entities, simplified rescheduling is typically available only if the company has been established for at least 12 months.

Learn more about ANAF rescheduling procedures.

Cost of Rescheduling: The interest applicable to simplified rescheduling is approximately 0.02% per day (around 7.3% annually), reducing its attractiveness as a long-term financing substitute.

Compare this with traditional bank lending rates.

4. Ongoing Compliance and the 60-Day Rule

Once a rescheduling plan is approved, taxpayers must remain current with all new tax obligations.

Law 239/2025 reduces the maximum delay for settling such obligations from 180 days to 60 days.

Non-compliance may lead to termination of the rescheduling arrangement, acceleration of outstanding amounts, and potential activation of guarantees, subject to administrative confirmation and procedural rights.

See our compliance monitoring section below.

5. Fiscal Inactivity and Administrative Consequences

The reform expands the grounds on which a taxpayer may be declared fiscally inactive, including:

  1. Failure to maintain a payment account in Romania or with the State Treasury;
  2. Failure to submit annual financial statements within statutory deadlines.

If inactivity persists, the tax authority is required to initiate procedures that may include insolvency or dissolution proceedings, in accordance with applicable legal frameworks.

For insolvency matters, review the Insolvency Law.

6. Digital Reporting and Compliance Monitoring

Romania’s tax administration increasingly relies on digital reporting systems such as SAF-T, e-Factura, and e-VAT.

These systems provide standardized accounting and transactional data used to assess compliance behavior, financial indicators, and risk profiles.

While the law does not mandate automatic decisions based solely on digital data, such reporting plays an important role in administrative analysis and verification processes.

Ensure your company’s digital compliance documentation is up to date.

7. Sectoral Impact and Transactional Considerations

Certain sectors—such as construction, retail, and pharmaceuticals—may face additional challenges due to longer commercial payment cycles combined with the shortened fiscal compliance timelines.

In transactional contexts, including share transfers and reorganizations, outstanding tax liabilities may attract increased scrutiny.

Notification obligations and guarantees may be required for tax debts to remain opposable following ownership changes.

For M&A considerations, consult our transactional structuring guide.


Frequently Asked Questions

Q: Can my company avoid providing a personal guarantee for classic rescheduling?

In practice, ANAF generally requires a personal guarantee for classic rescheduling arrangements, subject to the specific circumstances of the taxpayer and applicable administrative practice. The guarantee must be provided by the individual exercising effective control (typically the UBO as per Law no. 129/2019). For more information on shareholder obligations and control structures, consult our corporate law services. Refusal to provide a required guarantee may result in rejection of the rescheduling request and continuation of standard collection procedures.

Q: What happens if I exceed the 60-day compliance window during rescheduling?

Exceeding the 60-day grace period for settling current tax obligations can lead to the following consequences, subject to administrative confirmation:

  • Termination of the rescheduling arrangement
  • Acceleration of the entire outstanding debt
  • Potential activation of personal guarantees, in accordance with the Fiscal Procedure Code
  • Resumption of standard collection and enforcement procedures

Action: Maintain strict internal tracking of all current tax payment deadlines during any rescheduling period.

Q: Is my company eligible for simplified rescheduling?

Simplified rescheduling is available if your company meets all of the following:

For individuals, the threshold is 500 – 100,000 lei. If your debt exceeds the limit, classic rescheduling (with guarantee) is required. Check ANAF’s official guidance for detailed eligibility requirements.

Q: What does “fiscal inactivity” mean and what are the consequences?

A company is declared fiscally inactive if:

Consequences include initiation of administrative procedures that may lead to insolvency or dissolution proceedings. Prevention: Ensure your company maintains an active Romanian payment account and submits all financial statements on time.

Q: How much does simplified rescheduling cost?

The interest rate for simplified rescheduling is approximately 0.02% per day, which equates to roughly 7.3% annually. This relatively high rate reduces its attractiveness as a long-term financing tool compared to traditional commercial financing. Review current lending rates from the National Bank of Romania for comparison.

For classic rescheduling, interest rates are typically lower and may vary based on the specific arrangement negotiated with ANAF. For further information on tax law and planning, consult our specialized services.

Q: How is the personal guarantee enforced?

The fideiusiune (personal guarantee) must be executed in authentic notarial form (contact the Romanian Notaries Chamber). Under Romanian law, such instruments qualify as enforceable titles, granting ANAF enhanced enforcement rights in case of default:

  • Enforcement mechanisms follow the procedures set out in the Fiscal Procedure Code, which provide the tax authority with enhanced enforcement rights compared to ordinary civil claims
  • The guarantor’s personal assets may be subject to attachment and enforcement
  • Procedural safeguards apply in accordance with the Civil Procedure Code
  • The guarantee remains enforceable for the entire duration of the rescheduling arrangement
Q: What role do digital reporting systems (SAF-T, e-Factura, e-VAT) play?

ANAF uses data from these systems to:

  • Assess your compliance behavior and financial capacity
  • Evaluate your risk profile for rescheduling eligibility
  • Monitor your activities during an existing rescheduling arrangement
  • Detect inconsistencies or red flags in reporting

While automated decisions are not mandatory, accurate and timely submission of SAF-T, e-Factura, and e-VAT reports is an important factor in the overall assessment of rescheduling eligibility. Review ANAF’s digital compliance requirements.

Q: Can I change the guarantor once rescheduling is approved?

The law does not explicitly address substitution of guarantors after initial approval. In practice, ANAF may require consent or may require a new authentic guarantee instrument. Any change should be coordinated with your tax advisor and ANAF before implementation to avoid complications or loss of rescheduling status.

Q: Are there any deadlines for submitting the guarantee?

Yes. The law introduces tight deadlines ranging from several days following issuance of the fiscal attestation certificate to longer periods after preliminary approval. Missing these deadlines typically results in:

  • Rejection of the rescheduling request
  • Loss of provisional rescheduling status
  • Resumption of standard collection procedures

Action: Coordinate guarantee preparation with a notary in advance. Contact the Romanian Notaries Chamber to ensure timely submission.


Disclaimer: This article is provided for general informational purposes only and does not constitute legal or tax advice. The analysis is based on Law no. 239/2025 and publicly available information as of January 2026. Application of the law may vary depending on individual circumstances, administrative practice, and subsequent guidance or case law. Professional advice should be obtained before taking any action based on this content.

Cinematic photo illustration of property investment in Romania, featuring Romanian landmarks, residential real estate, legal contract, and investment symbols, representing a 2026 legal and real estate buying guide.

Buying Property In Romania: The 2026 Ultimate Legal & Investment Guide

 

 

 

 

Buying Property In Romania: The 2026 Ultimate Legal & Investment Guide

Master the process of buying property in Romania with our 2026 expert guide. Discover essential due diligence steps, latest market statistics, and legal requirements to avoid pitfalls and maximize ROI.


Need Professional Help?

At our law firm, Atrium Romanian Lawyers, we assist clients with real estate law and property purchases.


What is the Current State of Buying Property in Romania?

Definition: Buying property in Romania is the legal process by which a natural or legal person acquires ownership of real estate through a notarized Sales-Purchase Agreement (SPA).

As of early 2026, the Romanian residential market remains one of the most affordable in the European Union on a price-to-income basis. However, rapid appreciation in cities like Cluj-Napoca and Bucharest has intensified the need for rigorous due diligence.

1. New Construction vs. Old Buildings

Choosing between new and old stock is the primary decision for any buyer.

New Developments (Post-2010)

Modern apartments offer energy efficiency and contemporary standards.

Old Buildings (Pre-1990)

Older apartments often have superior central locations but hidden structural risks.

2. Step-by-Step Process for Buying Property in Romania

  1. Reservation Agreement: A small deposit to take the property off market for 7–14 days.
  2. Legal Due Diligence: Your lawyer verifies the Land Registry, Fiscal Certificate, and historical deeds.
  3. Pre-Sale Agreement (Antecontract): A notarized document with 5%–15% deposit.
  4. Bank Valuation: If using a mortgage, the bank evaluates the property value.
  5. Final Sales-Purchase Agreement: Signed before a Notary Public. Ownership transfer recorded immediately.

3. Essential Documentation Checklist

Use the interactive tool below to evaluate your potential property:

Property Analyzer Tool

Strategic Real Estate Analysis for the Romanian Market

🏗️ New Apartments

⏰ Old Apartments

🏠 Technical Assessment

Risk Assessment: 0% Complete

Start checking items to evaluate your property.

Sellers

Buyers

Risk Assessment: 0% Complete

Start checking items to evaluate your property.

Do you prefer a central location or a new developing neighborhood?

Can you afford renovation costs or do you need immediate move-in?

If renting, does the area have high and stable demand?

Is the real rental yield above 5-6%?


FAQ – Buying Property in Romania

Q: Can foreigners buy property in Romania?

A: Yes. EU citizens can buy land and buildings under the same conditions as Romanians.

Q: What are the closing costs for a buyer?

A: Budget between 1% and 3% of the property price for notary fees and legal diligence.

Q: How long does the process take?

A: Cash: 3-5 days. Mortgage: 30-60 days.

Q: What is property transfer tax?

A: 1% for values up to 450,000 RON; 3% above.


Why Professional Legal Support is Mandatory

The Romanian real estate market is “Caveat Emptor” (Buyer Beware). Professional legal advisors provide expert oversight to prevent financial traps.

Disclaimer: This article is for general information only. Consult a qualified Romanian lawyer before proceeding with a property purchase.