Romanian law allows new companies to distribute dividends quickly if they have profits. Let's look at how this works in practice.

Rules for Romanian Companies Paying Dividends

Romanian laws in 2024 let companies pay dividends yearly after approving financial statements, or quarterly throughout the year.

A new Romanian company can pay dividends soon after creation if it has profits. Companies can't pay dividends if they're losing money.

Laws allow quarterly dividend payments if companies meet financial criteria. This means companies can withdraw funds before year-end.

For example, a company started on January 1st that profits in the first quarter can pay dividends at quarter-end. However, companies must prepare interim financial statements for quarterly dividends.

Shareholders can choose to pay dividends every quarter.

Companies must approve their dividend policy in their Articles of Association or through a shareholder decision.

Dividend Income Tax

Shareholders should know Romania taxes dividends.

Romania charges 8% dividend tax for resident and non-resident shareholders. Companies must withhold this 8% tax before paying dividends.

Resident shareholders usually only pay 8% tax on dividends. But if their total yearly income exceeds a government limit, they must declare it in their annual tax return and may owe health insurance contributions.