Romania’s FDI dropped 12% in early 2025 due to tax reform concerns and weak enforcement.

Romania's foreign direct investment fell 12.14% in Jan–Apr 2025 amid concerns over tax reforms, including the retention of the minimum turnover tax (IMCA) for large firms and new limits on deductions for expenses tied to foreign affiliates. Critics, including 12 business groups, say the changes harm competitiveness, discourage investment, and conflict with international tax norms, while the IMCA underperformed, generating only RON 1.2 billion instead of the projected RON 6 billion. Experts cite weak enforcement capacity at the tax authority and frequent policy shifts as key factors undermining investor confidence.