Romania Moves Forward with Tax‑Free Retirement Investment Accounts

Romania's Senate has approved a draft law creating Individual Investment Accounts for the Future (CIIV), a voluntary savings instrument for residents who earn taxable income. The accounts, which can be managed by authorised investment service companies or banks, will allow contributions to be either fully tax‑exempt on withdrawals (CIIV‑S) or deductible at contribution with tax due on withdrawal (CIIV‑D). Contributions are optional and can be made by the account holder or, where permitted, by an employer. Funds may be invested in financial instruments under existing capital‑market regulations, and withdrawals are allowed after retirement age or once the holder turns 65.

The proposal, championed by PNL and USR parliamentarians Gabriela Horga and Sebastian Burduja, is modeled on similar schemes used in the United States and the United Kingdom, giving savers direct control over their investments and the prospect of tax‑free gains. The law now requires approval from the Chamber of Deputies before it can be promulgated and take effect on 1 January of the year after its publication in the Official Gazette.

If enacted, CIIVs will join Romania's existing pension pillars – the state‑run first pillar and the private second, third and professional pillars – offering an additional, market‑linked option for future retirees.