Romanian brokers and investors express concern over proposed capital gains tax hike

Market participants have voiced strong reservations about the Romanian government’s proposal to increase the capital gains tax rate on stock market transactions to 10% (from 1%-3% currently), citing potential disruptions to investor confidence and market stability. The proposal, part of the fiscal agenda included in prime minister Ilie Bolojan’s ruling programme has prompted responses from the Bucharest Stock Exchange (BVB), the Brokers Association, and the Fund Administrators Association (AAF).

In an official communication to the Ministry of Finance, obtained by Bursa.ro, the three institutions advocated for preserving the current taxation model on securities transfers, which was only recently updated. The present system includes withholding taxes and a tiered structure introduced in 2023, requiring significant investment in IT systems by intermediaries.