Romania removes tax on training

Kent Orrgren, President Romania Active

All memberships and subscriptions to gyms, health clubs and other fitness services have become tax-free in Romania.

The Romanian government approved the initiative after extensive lobbying by the newly founded industry association Romania Active.

As a result, the EU country Romania has become one of the first nations in the world to introduce tax-free training for its residents.

In an interview with the UK's Health Club Magazine, Kent Orrgren, President of Romania Active and CEO of World Class Romania, said:

"This is a major breakthrough. The new law is a valuable recognition of the importance of physical activity to the nation's health and the impact that the fitness industry has on the national economy."

The law has resulted in all gym and health club subscriptions becoming tax-free and tax-deductible up to a value of €400 (approx. SEK 4 500) per year for each employee. This means that companies can offer gym memberships and other fitness subscriptions as tax-free and deductible non-wage benefits.

The tax exemption also covers companies offering "mixed preventive care", which covers specific physical activity and medical subscriptions related to recovery and rehabilitation.

Feather in the cap

The introduction of the law is seen as one of the biggest wins so far for Romania Active, which was formed in 2021 by a group of the country's leading health and fitness companies.

Among Romania Active's objectives is to be at the forefront of any new legislative changes affecting the health and fitness sector - and to ensure that members are involved in the development of these changes.

The organization will also work to raise the status of health clubs and gyms in the eyes of the government.

The nine founding members of Romania Active are World Class, StayFit, Viva Sports Club, SmartFit, Stejarii Country Club, 4Moving, Elite Gym, Lotus Sport and Habit 30 Fitness.

Sweden

The tax on gym memberships in Sweden is 6% and the tax on digital services 25%.

The wellness allowance that Sweden has had for a long time is a solution that many other countries are looking at. Wellness allowances can be given up to a maximum of SEK 5,000 per year per employee and can be used for exercise or other wellness activities, such as a gym membership, horseback riding lessons, fruit, massages, etc.