Foreign citizens and company owners need to understand Romania’s tax system. We invite you to explore the taxation for expats in Romania and also discover the services provided by our Romanian accountants.
Table of Contents
Who is considered a tax resident in Romania?
Citizens residing in Romania for at least 183 days in 12 months.
What tax legislation applies in Romania?
The Fiscal Code (Law no. 227/2015).
Do resident citizens pay taxes in Romania if the income is generated here?
Yes.
What is the income tax in Romania for expats?
10% flat rate.
How is the income tax applied to expats in Romania?
On:
- Salaries,
- Self-employment,
- Rental income, etc.
Who collects the taxes in Romania?
The National Agency for Fiscal Administration (ANAF).
What are the social contributions to be paid by expats in Romania?
- 25% for pension (CAS),
- 10% for health insurance (CASS).
Is there a special tax regime for small business owners in Romania?
Yes, foreigners opening asmall business in Romania can pay a 1% flat tax rate if they do not exceed the annual threshold of EUR 100,000.
Where is the tax return filed in Romania?
Tax returns are submitted to the tax office located at the place of residence, i.e., the ANAF local office.
When is the tax declaration done in Romania?
Both local and foreign citizens must complete the fiscal declaration for the previous fiscal year by May 25th.
Are there any tax exemptions for expats in Romania?
Yes, here are some examples:
- digital nomad visa holders in Romania are exempt from income tax & social security contributions, under specific conditions (residency, salary, etc.),
- foreign citizens living in Romania are taxed only on the salary generated here,
- the double taxation treaties signed by Romania with countries worldwide protect expats’ income.
Would you like more details on the taxation of foreign citizens in Romania? You can contact our accounting firm in Romania. Our specialists can provide a wide range of accounting services not only for non-resident natural persons in Romania but also for company owners here.