Lesson 3 of 5 · 7 min read
Investment costs and taxation in Romania
TER, trading fees and the taxation of gains: the invisible costs that erode returns if you don't track them.
TER and fees
TER (total expense ratio) is the total yearly cost of a fund, as a percentage. The difference between a TER of 0.2% and one of 2% looks small, but compounded over 20 to 30 years it can mean a difference of tens of thousands of RON in the final sum. Besides TER, also check the trading fees (buying and selling) and any custody fees charged by the broker.
Taxation of investments in Romania
Investment gains (dividends, capital gains) are taxed in Romania. Through brokers authorised in Romania, the tax can be withheld directly at source (since January 2026, 3% for securities held over a year and 6% for those held under a year; the rates have changed, so check them with ANAF or an accountant before you decide). Through foreign brokers, the obligation to declare and pay the tax usually falls directly on the investor, through the Declarația Unică, at 16% of the net gain. Dividends are also taxed at 16% from 2026.
Check the current rules
Tax law can change. Always check the current rules on the ANAF website, or consult an accountant or tax adviser, before you declare investment gains.
Tax shouldn't be the only decision criterion, but its real cost (together with TER and fees) must be included in the “net” return you actually get, not only in the “gross” return an instrument shows.
In short
- A small TER, compounded over the long term, can mean differences of tens of thousands of RON.
- Romanian brokers can withhold the tax at source; foreign ones usually don't, and the obligation falls on the investor.
- Always check the current tax rules: they can change.