Tax Guide for Expats in Romania
Understanding Romanian taxes – whether employed, freelancing, or running a business.
Tax Residency
When Are You Tax Resident?
You become a Romanian tax resident if:
- You spend 183+ days in Romania in any 12-month period, OR
- Your center of vital interests is in Romania (home, family, business)
What Does It Mean?
- Tax residents: Taxed on worldwide income
- Non-residents: Taxed only on Romanian-source income
Employment Taxes (CIM Contract)
Employee Contributions
| Contribution |
Rate |
What It Covers |
| Income Tax (Impozit) |
10% |
Goes to state |
| Social Security (CAS) |
25% |
Pension |
| Health Insurance (CASS) |
10% |
Public healthcare |
| Total Employee |
45% |
|
Employer Contributions
| Contribution |
Rate |
| Work Insurance (CAM) |
2.25% |
Example Calculation
Gross salary: 10,000 RON
- CAS (25%): -2,500 RON
- CASS (10%): -1,000 RON
- Taxable base: 6,500 RON
- Income tax (10%): -650 RON
- Net salary: ~5,850 RON
Self-Employment Options
PFA (Persoană Fizică Autorizată)
| Aspect |
Details |
| Best for |
Freelancers, consultants |
| Income tax |
10% on profit OR 1-3% on revenue (norma de venit) |
| Social contributions |
25% CAS + 10% CASS (on minimum wage if income > 12 min wages) |
| VAT |
Required if turnover > 300,000 RON/year |
| Accounting |
Simple (can do yourself) |
Micro-SRL (Micro Company)
| Aspect |
Details |
| Best for |
Small businesses, contractors |
| Revenue tax |
1% (with employee) or 3% (no employee) |
| Limit |
Up to 500,000 EUR/year revenue |
| Dividends |
8% tax when extracting profits |
| Accounting |
Need accountant (~200-500 RON/month) |
Standard SRL
| Aspect |
Details |
| Best for |
Larger businesses, multiple shareholders |
| Profit tax |
16% |
| Dividends |
8% |
| VAT |
19% (required above threshold) |
Comparison: Employee vs PFA vs SRL
On equivalent 10,000 EUR/month gross income:
| Structure |
Net Monthly (approx) |
Admin Burden |
| Employee (CIM) |
~5,500 EUR |
None |
| PFA (real system) |
~7,500 EUR |
Low |
| Micro-SRL (1%) |
~8,500 EUR |
Medium |
Note: Simplified, actual amounts vary based on deductions and structure.
Important Deadlines
| What |
When |
| Annual tax return (individuals) |
May 25 |
| Quarterly declarations (PFA/SRL) |
25th of month after quarter |
| Monthly declarations (employers) |
25th of following month |
| Annual financial statements (SRL) |
May 30 |
Finding an Accountant
English-Speaking Accountants
- Accace Romania – International firm | accace.ro
- Mazars Romania – Big 4 adjacent | mazars.ro
- TaxHouse – Expat-friendly | taxhouse.ro
- Contexpert – Good for startups | contexpert.ro
Costs
- PFA accounting: 100-300 RON/month
- Micro-SRL: 200-500 RON/month
- Standard SRL: 500-1500 RON/month
- Tax consultation: 100-300 EUR/hour
Common Tax Benefits
- IT exemption: Income tax exemption for IT employees (conditions apply)
- Construction exemption: Reduced taxes for construction workers
- Personal deductions: For dependents
- Private pension: Up to 400 EUR/year deductible
Useful Resources
- ANAF (Tax Authority): anaf.ro
- SPV (Virtual Private Space): Online tax portal
- Tax calendar: anaf.ro/calendar
Last updated: December 2024