Romanian government greenlights tax incentives for stock market investments
The Romanian executive has adopted a series of measures to facilitate investments on the Bucharest Stock Exchange (or BVB) through the new economic recovery package approved on Tuesday, February 24.
The new tax facilities target both individuals who invest in shares and Exchange Traded Funds (ETFs), as well as companies that choose to list on the stock exchange. The declared objective is to increase the attractiveness of stock market investments, support company financing through the capital market, and ensure the long-term development of this segment of the economy.
The package introduces a tax incentive for individual taxpayers who invest in shares, bonds, or units issued by undertakings for collective investment in transferable securities, known as ETFs. The investments are made through regulated entities that are required to calculate, withhold, declare, and pay income tax, according to Digi24.
The amounts paid by the taxpayer for the acquisition of these financial instruments, within the equivalent in lei of EUR 400 per year, excluding transaction costs, will be considered deductible expenses.
The EUR 400 ceiling is granted per person, regardless of whether the economic activity is carried out individually or in an associative form. The ceiling also applies regardless of the number of intermediaries through which the investments were made.
In addition to facilities for investors, the economic package introduces support measures for companies that decide to list on a regulated market or on a multilateral trading system. In this regard, an additional deduction of 50% of the expenses related to the admission and maintenance process for trading shares is proposed.
The measure aims to reduce the initial and recurring costs associated with listing, therefore encouraging enterprises to turn to the capital market for financing instead of bank lending or other traditional sources.
Through these tax facilities, the government aims to increase the number of individual investors and stimulate the listing of new companies.
Roughly 300,000 people invest directly in the BVB, and 8.2 million do so indirectly, through pension funds. In 2025, the BVB’s main BET index registered a 55% index with dividends, the best annual growth rate since 2009.
(Photo source: BVB)
