A foreign-owned company registered in Romania is, legally, a Romanian company: it applies the same accounting rules, files the same tax returns and meets the same deadlines as any local limited liability company (SRL). The difference is not in the rules, but in the expectations behind them. An investor from Germany, Austria, Italy or the Netherlands needs figures they understand, in a format the group already uses, at a moment when they can still make decisions.
In practice this means a double effort: on one hand, impeccable compliance with Romanian legislation (e-Factura, SAF-T, e-Transport, payroll, the ONRC trade register); on the other, translating the company’s position into the language and logic of the parent. Accounting that covers only the first part leaves the manager alone with the group’s questions; accounting that covers both becomes a real bridge between Romania and the investor.
This article walks through the specific needs of a foreign-owned company: reporting to shareholders, profit repatriation through dividends, the mechanism of double tax treaties, and multilingual communication. It is written for the manager who wants to understand what is happening to the company’s money and obligations, not just sign returns.
Same local rules, different expectations
A foreign-owned company keeps its books in lei under Romanian accounting regulations, files the same returns and meets the same deadlines as any other company. There is no special accounting regime “for foreigners”. What is added are the requirements coming from the group.
- Parallel reporting — the parent often works under different standards (HGB in Germany, group policies or IFRS) and requests reclassified or reconciled data.
- Reporting currency — the books stay in lei, but the group frequently wants reports converted to euro, with a consistent, explained rate.
- Group calendar — the investor’s internal deadlines (monthly and quarterly closings) are often tighter than Romanian tax deadlines.
- Intra-group transactions — shareholder loans, inter-company invoicing, management fees: all require attention to transfer pricing and documentation.
The accountant’s role does not stop at local compliance. They must anticipate what the group will ask and prepare the data so the answer exists before the question. See the full range on the services page.
Reporting to investors
A shareholder hundreds of kilometres away does not see the company every day. Their only window into the business is the reports. If these are unclear, late or only in Romanian, the investor loses confidence even when the company is doing well.
Useful reporting to the parent has a few constant characteristics:
- it is periodic and predictable — the same structure, every month, on the same date;
- it is in the investor’s language — usually German or English, with correct terminology;
- it is reconciled with the official accounts — the figures in the group report must tie back to the Romanian trial balance;
- it contains context, not just numbers — a short note explaining the variances is worth more than a silent table.
What a reporting package typically contains
Depending on group requirements, a monthly or quarterly package usually includes: profit and loss in group format, the trial balance, receivables and payables, cash flow evolution, and a set of indicators (turnover, margin, staff cost). For German investors, alignment with the HGB structure and the group chart of accounts is often decisive.
Dividends and profit repatriation
The reason an investor puts capital into a Romanian company is, ultimately, profit. Repatriating it is usually done through dividends, and here two layers of taxation must be understood together.
The first layer is corporate income tax at the level of the Romanian company, paid before profit becomes distributable. The second is dividend tax, withheld at source when profit is distributed to the shareholder. The dividend tax rate is set by the Romanian Tax Code and has changed in recent years — check the rate in force at the date of distribution, as this is exactly the kind of figure that shifts.
| Stage | What is taxed | Who pays |
|---|---|---|
| Company profit | Annual taxable result | The Romanian company |
| Dividend distribution | Gross dividend to the shareholder | Withheld at source by the company |
| Receipt abroad | Possibly, at shareholder level | Settled through the double tax treaty |
Dividends can be distributed after the financial statements are approved; interim (quarterly) distributions are possible under the conditions set by law, with a year-end regularization. The timing and form of distribution have a direct impact on the investor’s cash flow, so they are worth planning, not improvising.
Double taxation and tax treaties
With no protection, the same income could be taxed twice: once in Romania (at source) and once in the shareholder’s country of residence. This is where the double tax treaties Romania has concluded with Germany, Austria, Italy, the Netherlands and most European states come in.
Simplified, the mechanism works like this:
- The shareholder obtains a tax residence certificate from their country, valid for the year in question.
- On that basis, the Romanian company can apply the reduced rate provided by the treaty for dividends (often lower than the domestic rate) instead of the standard rate.
- In the country of residence, the tax already withheld in Romania is usually credited or exempted, according to the method provided by the treaty.
The critical detail is the residence certificate: without it, the Romanian company must apply the full domestic rate. So the document must be obtained on time and renewed annually. For groups meeting the conditions of the EU Parent-Subsidiary Directive, dividend distribution may even qualify for exemption — the conditions (holding percentage, minimum period) must be checked case by case.
Transfer pricing and intra-group transactions
Foreign-owned companies frequently transact with other group entities: loans, management services, licences, purchases of goods. For tax purposes, these transactions must respect the arm’s length principle — that is, prices comparable to those between independent companies.
Above certain transaction thresholds, the obligation to prepare a transfer pricing file arises. Thresholds and requirements are regulated and may be updated, so check the values in force. Even below the threshold, minimal documentation of how intra-group prices were set protects you in the event of an audit. See how we help in this area.
Multilingual communication as a service in itself
The best accounting loses its value if the investor does not understand it. For a foreign-owned company, communicating in the group’s language is not a nicety but part of the service. A contact who explains an ANAF notice in German, handles correspondence with the group auditor in English, or translates the logic of a Romanian return for a foreign CFO saves time and prevents costly misunderstandings.
Conta Fiscal communicates fluently in Romanian, German and English and understands both the mechanics of Romanian tax and the expectations of an investor from the German-speaking or international market. In practice, the manager no longer has to be the translator between the company and the group.
Where to start
If you run a foreign-owned company — or are preparing an investor’s entry — the points above quickly turn into a list of decisions: how you report to the group, when and how you distribute dividends, which residence certificate you obtain, and how you document intra-group transactions. You do not have to solve them alone. Contact us and we will build, together, an accounting and reporting flow that fits your company and your investors.
Frequently asked questions
Does a foreign-owned company have a special accounting regime in Romania?
No. It applies the same rules, returns and deadlines as any Romanian SRL. What is added are only the reporting and reconciliation requirements coming from the parent company.
How are dividends paid to a foreign shareholder taxed?
Profit is first taxed at company level, then the dividend is subject to dividend tax withheld at source. The rate can be reduced through the double tax treaty. Check the rate in force at the date of distribution.
What is the tax residence certificate and why does it matter?
It certifies the shareholder’s tax residence in their country. On its basis, the Romanian company can apply the reduced treaty rate instead of the domestic rate. Without it, the full domestic rate applies.
Can I receive the accounting reports in German or English?
Yes. Conta Fiscal prepares reports in the format the group requires and communicates in Romanian, German and English with correct tax terminology.
When can I distribute dividends to the investor?
After the annual financial statements are approved; interim quarterly distributions are possible under the conditions set by law, with a year-end regularization.
Do transactions with group companies require special documentation?
Yes. They must respect the arm’s length principle, and above certain thresholds a transfer pricing file becomes mandatory. Check the thresholds in force.