Over the past years, Romania has become one of the most attractive jurisdictions in Central and Eastern Europe for IT businesses, software development companies, and technology investors. Combining a highly skilled workforce, competitive operational costs, strong digital infrastructure, and access to the European Union market, Romania continues to strengthen its position as a regional technology hub.
The continued growth of Romania’s IT sector is strongly supported by the government’s active involvement in providing incentives for companies operating in the field. In this regard, the Romanian government has introduced several initiatives aimed at accelerating digital transformation and attracting foreign investment in the software industry, including:
- The PNRR Digitalization of SMEs Program, which provides grants of up to 100.000 euros per company to support SMEs in adopting digital technologies.
- An additional 50% tax deduction for eligible research and development (R&D) expenses incurred by companies investing in innovation and technological development.
Furthermore, Romania has become an attractive destination for startups by offering favorable tax incentives for newly established businesses. Micro-enterprises, namely companies with an annual turnover of less than EUR 100,000, benefit from a reduced tax rate of 1%, while the standard corporate income tax rate applicable to other companies is 16%.
Through these measures, the Romanian government not only encourages IT entrepreneurs and investors to enter the market, but also supports the long-term development and expansion of their businesses within the country.
Why Choose Romania for Your IT Business
- Easy market entry through simple and efficient company incorporation procedures;
- Access to a large pool of highly skilled IT professionals;
- Government support through tax incentives and deductions for R&D activities;
- Favorable tax regime for startups and micro-enterprises;
- Strategic access to the EU market and strong digital infrastructure.
