{"id":379,"date":"2023-08-10T11:46:13","date_gmt":"2023-08-10T11:46:13","guid":{"rendered":"https:\/\/romanian-accountants.com\/?p=379"},"modified":"2023-08-10T11:46:15","modified_gmt":"2023-08-10T11:46:15","slug":"taxes-in-romania-for-expats","status":"publish","type":"post","link":"https:\/\/romanian-accountants.com\/taxes-in-romania-for-expats\/","title":{"rendered":"Taxation for Expats in Romania"},"content":{"rendered":"\n<p>Foreigners who want to work in Romania must consider the applicable tax system. The same is available for international companies that want to enter the Romanian market.&nbsp;<strong>Taxes for expats in Romania<\/strong>&nbsp;can be explained in detail by our&nbsp;<a href=\"https:\/\/romanian-accountants.com\/about-us\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Romanian accountants<\/strong><\/a>, whether we are talking about individuals or legal entities. The specialized help offered by an experienced accountant is essential for foreign companies that want to move their&nbsp;<strong>business to Romania<\/strong>.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_64 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #002e5b;color:#002e5b\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #002e5b;color:#002e5b\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/romanian-accountants.com\/taxes-in-romania-for-expats\/#what-to-consider-about-the-taxes-for-expats-in-romania\" title=\"What to consider about the taxes for expats in Romania\">What to consider about the taxes for expats in Romania<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/romanian-accountants.com\/taxes-in-romania-for-expats\/#taxation-of-foreign-companies-in-romania\" title=\"Taxation of foreign companies in Romania\">Taxation of foreign companies in Romania<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/romanian-accountants.com\/taxes-in-romania-for-expats\/#vat-in-romania\" title=\"VAT in Romania\">VAT in Romania<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/romanian-accountants.com\/taxes-in-romania-for-expats\/#dividend-tax-in-romania\" title=\"Dividend tax in Romania\">Dividend tax in Romania<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/romanian-accountants.com\/taxes-in-romania-for-expats\/#who-does-not-pay-taxes-in-romania\" title=\"Who does not pay taxes in Romania?\">Who does not pay taxes in Romania?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/romanian-accountants.com\/taxes-in-romania-for-expats\/#romania-a-good-business-destination\" title=\"Romania, a good business destination\">Romania, a good business destination<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what-to-consider-about-the-taxes-for-expats-in-romania\"><\/span><strong>What to consider about the taxes for expats in Romania<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The 10% income tax applies to both domestic and foreign taxpayers residing in Romania. This tax applies to incomes registered and collected in Romania, but before this, a&nbsp;<strong>residence tax in Romania<\/strong>&nbsp;must be obtained as an expat. Here&#8217;s what this entails:<\/p>\n\n\n\n<ul>\n<li>The foreign citizen or the company from abroad must reside in Romania for at least 183 days in 12 months to be considered a resident tax.<\/li>\n\n\n\n<li>Non-residents earning income in Romania must pay taxes in this country.<\/li>\n\n\n\n<li>The 10% tax applies to income from investments, rental activities, salaries, independent activities, or real estate transactions.<\/li>\n\n\n\n<li>Tax return submission is made at the tax office located at the place of residence.<\/li>\n<\/ul>\n\n\n\n<p>Foreign companies that want to&nbsp;<a href=\"https:\/\/romanian-accountants.com\/vat-registration-in-romania\"><strong>register for VAT purposes in Romania<\/strong><\/a>&nbsp;must consider specialized help from the<strong>&nbsp;Romanian accounting team<\/strong>. It is much more appropriate to consider the services of our accounting firm in exchange for setting up an entire department in terms of costs and more.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"taxation-of-foreign-companies-in-romania\"><\/span><strong>Taxation of foreign companies in Romania<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As we mentioned earlier, companies that want to carry out their activities in Romania must first register with the tax system in this country. A permanent residence is required for this registration, and the following charging rules apply:<\/p>\n\n\n\n<ul>\n<li>Companies residing in Romania are taxed on registered worldwide income.<\/li>\n\n\n\n<li>Non-resident companies will pay taxes on all income.<\/li>\n\n\n\n<li>16% is the standard profit tax rate in Romania.<\/li>\n\n\n\n<li>Companies with offices in Romania must pay the 16% profit tax.<\/li>\n\n\n\n<li>Real estate revenues registered in Romania are subject to this type of taxation.<\/li>\n<\/ul>\n\n\n\n<p>Everything you need to know about<strong>&nbsp;income tax and profit tax in Romania<\/strong>&nbsp;can be found with our accounting specialists. They can explain to you what&nbsp;<strong>taxes for expats in Romania<\/strong>&nbsp;entail.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"vat-in-romania\"><\/span><strong>VAT in Romania<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>19% is the standard value for&nbsp;<strong>VAT in Romania<\/strong>, but there are also lower rates, of 9% for catering services, hotel accommodation, medical equipment, and respectively 5% for cultural events, newspapers, and magazines, cinemas, etc. The<strong>&nbsp;registration for VAT purposes<\/strong>&nbsp;can be done if the threshold of 300,000 lei per year is reached. However, there is also the option of&nbsp;<strong>registration for optional VAT purposes<\/strong>. Everything you need to know about<strong>&nbsp;VAT in Romania<\/strong>, but also&nbsp;<strong>taxes for expats in Romania<\/strong>, you can find out from&nbsp;<a href=\"https:\/\/romanian-accountants.com\/services\"><strong>Romanian accountants<\/strong><\/a>&nbsp;who can help you with registration for this purpose.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"dividend-tax-in-romania\"><\/span><strong>Dividend tax in Romania<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>5% is a tax&nbsp;<a href=\"https:\/\/romanian-accountants.com\/dividend-tax-in-romania\"><strong>dividend in Romania<\/strong><\/a>&nbsp;that applies to a gross dividend paid or distributed, as the case may be. Foreigners who benefit from dividends in Romania are obliged to declare this type of income and to pay the related taxes. The Romanian legislation mentions that the distribution of dividends can be done both half-yearly and annually, and the payment of taxes, depending on this aspect. Do not hesitate to discuss more about&nbsp;<strong>taxes for expats in Romania<\/strong>&nbsp;with our accountants.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"who-does-not-pay-taxes-in-romania\"><\/span><strong>Who does not pay taxes in Romania?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Religious organizations, micro-enterprises, teaching institutions, and owners associations are part of the category of entities that do not pay<a href=\"https:\/\/romanian-accountants.com\/taxes-in-romania\"><strong>&nbsp;taxes in Romania<\/strong><\/a>. However, there are certain conditions for<strong>&nbsp;tax exemption in Romania<\/strong>, but these details can be provided by our accountants.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"romania-a-good-business-destination\"><\/span><strong>Romania, a good business destination<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are many business opportunities in Romania for experienced foreign investors. In addition to the fact that they can enjoy an advantageous charging system, they can also benefit from an experienced and multilingual workforce. The procedure for registering a company has been greatly simplified in recent years, a strong advantage for foreigners who want to carry out their activities in this country. Here are some statistics about the economic direction of the country:<\/p>\n\n\n\n<ul>\n<li>According to information for 2020, the total FDI in Romania was approximately USD 107.5 billion.<\/li>\n\n\n\n<li>Most foreign investments are absorbed by the manufacturing and construction sectors in Romania.<\/li>\n\n\n\n<li>The country was ranked 55th out of 190 world economies in terms of business conditions, according to the&nbsp;<a href=\"https:\/\/www.doingbusiness.org\/en\/data\/exploreeconomies\/romania\"><strong>2020 Doing Business<\/strong><\/a>&nbsp;report.<\/li>\n<\/ul>\n\n\n\n<p>Do you want more information about<strong>&nbsp;taxes for expats in Romania<\/strong>? We invite you to&nbsp;<a href=\"https:\/\/romanian-accountants.com\/contact\"><strong>contact our accounting firm in Bucharest<\/strong><\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Foreigners who want to work in Romania must consider the applicable tax system. The same is available for international companies that want to enter the Romanian market.&nbsp;Taxes for expats in Romania&nbsp;can be explained in detail by our&nbsp;Romanian accountants, whether we are talking about individuals or legal entities. The specialized help offered by an experienced accountant [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":210,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[19,9,335,337],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Taxes for Expats in Romania - Accounting Services at Affordable Costs<\/title>\n<meta name=\"description\" content=\"Information about the taxes for expats in Romania can be offered by our Romanian accountants with experience in this field. 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