Expatriate tax ebook - Romania

Facts and figures

Pre arrival procedures
Employment visas
Tax year
Tax returns and compliance
Income tax rates
Sample income tax calculation

Pre arrival procedures 
Foreign individuals (depending on nationality/country of residence) may be visa restricted from entering Romania. Where this is the case, before arriving in Romania foreign nationals need to apply for and obtain the type of visa that corresponds to the purpose of their intended trip to the country (e.g. tourist, working, business, commercial activities visa, etc.). The visa can be obtained from the Romanian diplomatic missions in their home countries.

Nationals of countries considered by the Romanian authorities as being “high immigration risk countries” must obtain a visa prior to their arrival in the country, based on a special invitation procedure.

EU nationals, as well as nationals of other countries with which Romania has special visa agreements, do not need visas to enter the country (but duration of stay may be restricted).

EU citizens working in Romania do not need a work visa or a work permit. In case the staying in Romania of the EU citizens exceeds 90 days they will need a stay permit called registration certificate (“certificate de inregistrare”), issued by the territorial offices of the Romanian Immigration Office.

In case of seconded employees the competent labour authorities must be informed about the secondment, according to the procedure established by the legislation in force.

Non-EU citizens are usually required to apply for a Work Permit prior to the employee taking up employment in Romania. Please note that the work authorization for non-EU citizens might be requested both in case of individuals that want to work in Romania as an employee of a Romanian company (permanent workers) and in case of the seconded employees.

Please note that the foreign citizens working in Romania (irrespective if they are EU or non-EU citizens) must obtain from the Romanian tax authorities a Fiscal Registration Number in Romania (“NIF”). The temporary residency permit (in case of non-EU citizens) or the registration certificate (issued to EU citizens that have prolonged their staying right in Romania for more than 90 days) can be used also as a tax identification document upon registering with the Romanian Tax Authority.

Employment visas
The citizens coming from the states mentioned in the list specified in Annex 1 to the CE Council Regulations no. 539/2001 need a visa for entering Romania.

In order to enter Romania for work reasons, for studies, performance of economical, commercial or professional activities, family reintegration and some others activity, the non-EU citizens must obtain a long stay visa.

The procedure for obtaining the work authorization must be fulfilled by the Romanian company where the foreign individual will perform its activity as permanent worker or as a seconded employee.

As mentioned above the EU-citizens do not need a visa for entering Romania.  The non-EU citizens may need or not a visa for entering Romania (including work visa) depending on the country of origin.

The long stay visa for employment/secondment may be granted for  a maximum period of 90 days. The long stay visa grants the non-EU individual the right to prolong its staying in Romania and obtain a staying permit.

In case the non-EU citizens want to extend their staying in Romania for work reasons they will have to prove the fulfilling of certain conditions required by the law.

There are short term visas (for periods not exceeding 90 days within a 6 month period starting from the 1st entrance) issued for tourism, business, transport, cultural and sport activities and long term visas (for periods up to 90 days) issued for studies, performance of economical, commercial or professional activities, family reintegration, employment, secondments, etc.

In case of non-EU citizens, family reintegration visas are generally necessary.

There are special arrangements between Romania and other countries regarding expatriates. Please contact us for further information.

Tax year
The Romanian tax year runs from 1st January to 31st December.

Tax returns and compliance
Tax return filing due date depends on the type of income.

For salary income both for the Romanian employees and the EU or non-EU permanent workers and/or seconded employees, the due date for the special tax return filling is the 25th of each month for the previous month.

Expatriate filing obligations

• There is an initial informative declaration to be fulfilled in 15 days from the beginning of expatriate’s activity.
• The employment related tax compliance obligations rest entirely with the local employer, while under foreign employment agreements, these obligations rest entirely with the foreign individual.
• For the first three years of residence in Romania, foreign nationals working solely under local employment agreements for work performed in Romania generally do not need to file annual tax returns with the Romanian tax authorities unless they obtain rental income from Romania, freelance income or capital gains from the transfer of listed securities in Romania.
• For those working under foreign employment agreements for work performed in Romania, monthly individual income tax returns may need to be submitted. The monthly tax returns should be filed by the twenty-fifth of the month following that in which the income was earned.
• From the fourth year of residence in Romania foreign nationals also have an obligation to file an annual tax return declaring worldwide income.
• The annual tax return should be filed by 15 May.
• A confirmation of individual income taxes paid during the expatriate’s assignment in Romania can be obtained at the end of each tax year.
• Individual income tax should be paid every month to the Romanian tax authorities in the sector (if in Bucharest) or locality where the foreign national resides (for income obtained from foreign employers). The deadline for transmitting an individual income tax payment to the state budget is the twenty-fifth of the month following that to which the income relates.
• For salary income received from a Romanian resident company, the individual income tax is withheld and paid every month by the employer.

Please contact us for detailed information.

There are penalties for late filing

There may be other filing obligations: for example, the expatriates seconded employees must inform the Labour Authorities about their secondment.

Income tax rates
In Romania there is a flat rate of 16% for most types of income earned by an individual.

Sample income tax calculation
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Information about Romania: