Romania’s government unveiled a package of business‑friendly tax measures aimed at strengthening the country’s automotive sector at the Automotive Forum in Bucharest on 11 November 2026. Prime Minister Luca Niculescu told delegates the administration will act to make Romania “a predictable, investment‑friendly location” for vehicle and component makers.
Policy measures announced
Niculescu said the government will eliminate the minimum turnover tax (IMCA) from 1 January 2027 and offer accelerated tax depreciation for companies that commission new assets in 2026 – allowing firms to deduct 65% of the fiscal value of eligible machinery, equipment and installations in the first year. He also outlined a refundable tax credit equal to 10% of eligible research & development expenditure. The prime minister highlighted the multi‑annual TechUp Romania programme, with a budget of more than 5.3 billion lei to support investments in mobility, green energy, microelectronics and AI.
The measures are set out in the government’s Program for 2026–2028, which emphasises simplifying administrative procedures, improving investment predictability and supporting industrial re‑tooling in strategic sectors including automotive and batteries. The programme text also commits to operationalising single‑licence and investor services to reduce permitting delays.
What this means for the market
Taken together, the fiscal changes target two immediate constraints for manufacturers and suppliers: up‑front cash flow and the effective cost of investment. Abolishing IMCA from 1 January 2027 removes a fixed tax burden that can be disproportionately heavy for capital‑intensive suppliers, while the 65% first‑year depreciation for 2026 commissions aims to accelerate capex decisions this year. The 10% refundable R&D credit is designed to keep engineering, software and battery development onshore. These are explicit government measures; their timing and rates were announced by the prime minister on 11 November 2026.
For Central and Eastern Europe’s auto ecosystem, Romania’s steps strengthen its bid to retain final assembly and supplier investment rather than lose projects to low‑cost competitors. The programme also signals that Bucharest will lean on fiscal tools and permitting reform—rather than only purchase‑subsidy schemes—to keep the supply chain anchored in the country. The government links these measures to energy policy and skills programmes intended to mitigate rising energy costs and labour‑market mismatch.
Implementation details and state‑aid notifications will determine how quickly investors respond. The measures announced apply to investments commissioned in 2026 (depreciation relief) and take effect from 1 January 2027 for IMCA removal, so companies must align project timetables with the stated windows to benefit.
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Sources: The Diplomat Bucharest, Government of Romania – Program de Guvernare 2026–2028
