Taxes in Romania

Romania tax rates in 2026 at a glance

A quick reference based on the current Romanian Fiscal Code, including both fiscal packages adopted in 2025 (Law 141/2025 and Law 239/2025). Details and worked examples follow below.

2026 is a tax-raising year for Romania. Value added tax went from 19% to 21% on 1 August 2025, and the old 5% and 9% reduced rates were merged into a single 11% rate. From 1 January 2026 dividends are taxed at 16% instead of 10%, crypto and most other capital gains also at 16%, the micro-enterprise ceiling fell from $280,000 (€250,000) to $113,000 (€100,000), and local taxes on homes and cars are now calculated under new rules. Any source quoting 19% value added tax, 10% on dividends or a 3% micro-enterprise rate is out of date.

Many thresholds in the Code are pegged to the gross minimum wage. It was $850 (4,050 lei) in the first half of 2026 and has been $910 (4,325 lei) since 1 July 2026. Contribution amounts for the self-employed and investors for 2026 are calculated from $850 (4,050 lei).

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Who is a tax resident of Romania

A resident pays income tax on income from every source, inside and outside Romania. A non-resident pays only on Romanian-source income. Any one test is enough.

The arrival and departure questionnaires

A foreign national who has spent more than 183 days in Romania within 12 months must file a residency questionnaire on arrival (Chestionar pentru stabilirea rezidenței fiscale la sosirea în România) with the tax authority ANAF within 30 days of reaching day 183. Attach your passport, residence permit, proof of housing, any foreign residency certificate and certified Romanian translations. ANAF notifies you within 30 days whether you have become resident and from what date.

A resident leaving for more than 183 days files a departure questionnaire at least 30 days before leaving. The fine for missing a deadline is only $15-25 (50-100 lei), but the questionnaire fixes the date your status changes, which matters far more.

If you hold a residency certificate from a treaty country, the conflict is settled under the treaty tie-breakers: permanent home, centre of vital interests, habitual abode and only then nationality. Without a certificate, a person who meets the Romanian tests is treated as a Romanian resident. We cover day counting and choosing a country of residence in our article on tax residency and the 183-day rule.

A passport by descent and your tax position

A Romanian passport does not by itself make you a tax resident: citizenship is not one of the tests, except for state employees. But many people who obtain Romanian citizenship by repatriation later take out an identity card with a Romanian address, and that is a strong pointer to domicile. One rule is easy to miss: a Romanian national domiciled in Romania who moves to a country with no double tax treaty remains liable to Romanian tax on worldwide income for the year of the move and for the following 3 calendar years. If you move to a treaty country, residency changes from the date shown on the new country's residency certificate.

Romania tax residency rules: how to become resident and count days

Romania does not count the calendar year but any 12 consecutive months ending in this year. More than 183 days in such a window makes you resident from the day you arrived. The tax office counts arrival and departure days, and even part days, as days in the country.

You can be resident without the days too: a registered home address, a centre of vital interests in Romania, or service for the Romanian state abroad. A resident pays 10% on worldwide income, a non-resident only on Romanian income. After 183 days in the country, a residence questionnaire goes to the tax office within 30 days.

Mistakes cost more: the rolling window is invisible on a calendar but not to the tax office, and a missed questionnaire or a double claim on one income costs more. Murblz support removes these risks: we count days on the rolling window, prepare the questionnaire, obtain the residence certificate and apply the double tax treaty. We guarantee professional work and a transparent process, and in most cases a result on the first filing.

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Personal income tax: 10%, with separate rates for investments

The headline rate is a flat 10% with no progression. From 2026, however, some income is taxed at 16%, and trades through Romanian brokers get reduced rates.

The personal deduction and the $45 (200 lei) tax-free amount

Two mechanisms help lower earners. The personal deduction (deducere personală) applies at your main job where gross pay is no more than the minimum wage plus $420 (2,000 lei), that is up to $1,400 (6,325 lei) from 1 July 2026. At minimum-wage level the deduction for someone with no dependants is 20% of the minimum wage, or $190 (865 lei) a month from 1 July; with one, two or three dependants it is 25%, 30% or 35%, and with four or more 45%. The deduction tapers as pay rises and disappears at $1,400 (6,325 lei).

The second is a tax-free amount for employees whose base salary under a full-time contract is exactly the minimum wage. From January to June 2026 it was $65 (300 lei) a month for gross pay up to $900 (4,300 lei); from 1 July 2026 it is $45 (200 lei) for gross pay up to $970 (4,600 lei). Neither tax nor contributions are due on that amount. If a bonus pushes gross pay above the limit in a given month, the relief is lost in full.

Salary tax can also be reduced by contributions to a private pension and by private health insurance, each up to the equivalent of $450 (€400) a year, a gym or sports subscription up to $120 (€100) a year, and purchases of shares, bonds or ETFs through Romanian intermediaries up to $450 (€400) a year.

The income tax exemption for software developers, along with the reliefs for construction, agriculture and the food industry, was abolished on 1 January 2025.

Social contributions and take-home pay

In Romania almost the entire payroll burden sits with the employee. The pension contribution CAS (contribuția de asigurări sociale) of 25% and the health contribution CASS (contribuția de asigurări sociale de sănătate) of 10% are deducted from gross pay. On top of that the employer pays only the work insurance contribution CAM (contribuția asiguratorie pentru muncă) of 2.25%.

Example: gross pay of $2,100 (10,000 lei) a month

The employee gives up $870 (4,150 lei), or 41.5% of gross pay. Of the $2,200 (10,225 lei) the employee costs, about 57% reaches them. At the minimum wage of $910 (4,325 lei), with the $45 (200 lei) tax-free amount and the personal deduction, net pay comes to about $570 (2,699 lei).

If you live in Romania and work for a foreign employer with no Romanian entity, you file and pay the tax and contributions yourself every month by the 25th. With an A1 certificate from another European Union country, contributions can stay there while the tax is due in Romania.

Sole traders (PFA), freelancers and digital nomads

The standard vehicle for freelancers and consultants is the PFA (persoană fizică autorizată, an authorised self-employed individual). The 10% tax applies to net income: revenue less documented expenses and contributions. For some activities you can opt for an income norm (normă de venit), a fixed amount set by regional tax offices; tax and contributions are then based on that figure.

PFA contributions in 2026

The CASS cap rose from 60 to 72 minimum wages in 2026.

Example: a PFA with net income of $21,000 (100,000 lei) for 2026

That is a burden of about 30% of net income. At $32,000 (150,000 lei) the CAS contribution rises to $5,100 (24,300 lei) because income exceeds 24 minimum wages, and the total climbs to around 34%. The single tax return, Declarația unică (form 212), and payment are due by 25 May of the following year.

The main PFA risk is reclassification. The Code sets tests for independent activity: if you work for one client, on their schedule, at their premises and with their tools, ANAF can treat the income as salary and reassess tax and contributions. If an employer wants to move you onto a PFA contract, talk to Murblz specialists before signing.

Digital nomads

A foreign national on a Romanian digital nomad visa who works remotely for a foreign company is exempt under Law 69/2023 from Romanian income tax and social contributions on salary paid from abroad, as long as they stay no more than 183 days in any 12-month period. Once you cross that line you are resident: the foreign salary is taxed at 10% plus contributions, which you pay yourself every month. For a freelancer with several clients the choice usually comes down to a PFA or your own SRL under the micro-enterprise regime.

Companies: 16% corporate tax, 1% micro regime and 16% on dividends

The default regime for an SRL (societate cu răspundere limitată, a limited liability company) is corporate income tax at 16%. Small companies with revenue up to $113,000 (€100,000) can pay 1% of revenue instead. In 2025 the ceiling was $280,000 (€250,000) and there were two rates, 1% and 3%; from 2026 there is a single rate and the ceiling is two and a half times lower.

From 2026 a new SRL needs minimum share capital of $110 (500 lei), and companies with annual turnover above $84,000 (400,000 lei) must have at least $1,100 (5,000 lei). Start with company registration in Romania and a business bank account.

Example: what reaches the owner

A company with one employee, revenue of $84,000 (400,000 lei), costs including payroll of $32,000 (150,000 lei) and pre-tax profit of $53,000 (250,000 lei). The owner is a Romanian tax resident and takes the whole profit as dividends.

The gap is real, but $84,000 (400,000 lei) of revenue is already close to the ceiling. The micro regime needs a genuine employee, and going over $113,000 (€100,000) moves the company into corporate tax. If the owner remains tax resident in another country, the profits of a Romanian company may also fall under that country's controlled foreign company rules: see controlled foreign company notifications and reporting.

VAT: 21%, 11% and a $83,000 threshold

Since 1 August 2025 the standard value added tax rate has been 21% instead of 19%, and the reduced 5% and 9% rates have been replaced by a single 11% rate. There is no zero rate as such, but exports and supplies to other European Union countries are exempt with the right to recover input tax.

On housing: the transitional 9% rate covered flats and houses of up to 120 m² worth up to $130,000 (600,000 lei) excluding value added tax, where the buyer had signed a preliminary contract before 1 August 2025. It was due to end on 31 July 2026; Law 161/2026 extended it to 30 September 2026 after a cyberattack on the ANCPI land registry system. After that date new housing is taxed at 21%.

Registration and filing

A company or sole trader established in Romania must register for value added tax once annual turnover exceeds $83,000 (395,000 lei). That threshold has applied since 1 September 2025; before that it was $63,000 (300,000 lei). Voluntary registration below the threshold is allowed. Foreign businesses with no Romanian establishment have no threshold and register before their first taxable supply.

A trap for small businesses below the threshold: if you buy services from foreign suppliers (advertising, SaaS, European Union contractors), you need a special value added tax code and must self-account for value added tax on them with no right to deduct it.

The value added tax return (form 300) is filed monthly by the 25th of the following month; quarterly filing is allowed if last year's turnover was under $113,000 (€100,000) and there were no acquisitions within the European Union. Invoices between Romanian businesses must go through the RO e-Factura e-invoicing system within 5 working days, and an invoice issued outside the system can cost a penalty of 15% of its value. SAF-T reporting is mandatory in 2026 for large, medium-sized and small companies. For bookkeeping see accounting and reporting.

Property, cars, inheritance, investments and crypto

Tax on your home

The local building tax is paid by the owner. For homes owned by individuals the rate is 0.08-0.2% of the taxable value, with the exact rate set by the local council. The taxable value is not the market price but a figure from the Code's table: a value per square metre multiplied by floor area and by a zone coefficient. In 2026 the table jumped: 2,677 lei per m² instead of 1,000 lei for a concrete or brick home with all utilities. Non-residential buildings are taxed at 0.2-1.3%.

Example: a 70 m² flat in a brick building with all utilities in a central Bucharest zone with a coefficient of 2.6. The taxable value is 70 × 2,677 × 2.6, about 487,200 lei. At 0.08% the tax is about $85 (390 lei) a year, at the 0.2% maximum about $210 (975 lei). Councils can grant up to 10% off for paying in full by 31 March.

A separate high-value asset tax also applies: 0.9% (0.3% before 2026) on the part of the taxable value of a residential building above $530,000 (2.5 million lei), declared and paid by 30 September. For sourcing and checking properties see investment property in Romania.

Car tax

From 2026 the tax is charged per 200 cm³ of engine capacity at a rate that depends on the Euro emissions class: the older the standard, the higher the rate. Rates per 200 cm³ rise steeply for engines above 2,000 cm³. Electric cars, previously exempt, now pay a flat $10 (40 lei) a year, and councils may cut the tax by up to 30% for hybrids emitting no more than 50 g CO2/km. Cars costing more than $79,000 (375,000 lei) also pay 0.9% on the excess for five years from the year of purchase, due by 31 December.

Selling, inheriting and gifting property

The seller pays at the notary before signing, on the contract price but never less than the notaries' chamber valuation. Example: a flat bought in 2022 and sold in 2026 for $130,000 (600,000 lei). It has been held for more than 3 years, so the tax is 1%, or $1,300 (6,000 lei). The buyer pays no tax, only notary and registration fees. There is no separate inheritance, gift or wealth tax.

Rent, investments and crypto

If you trade through a foreign broker, the annual gain is taxed at 16% and self-assessed; a loss can be carried forward for 5 years but can offset no more than 70% of each year's gain. From 2026 crypto gains are also taxed at 16%, and crypto platforms report client transactions to ANAF under the CARF and DAC8 standards. More in our guide on crypto and relocation.

On top of tax on rent, dividends, interest, capital gains and crypto, a 10% CASS health contribution is due once all such income together reaches 6 minimum wages in a year. The contribution is calculated on a fixed base, not on the income itself.

Example: a crypto gain of $11,000 (50,000 lei) in 2026. Tax at 16% is 8,000 lei, CASS on a base of 12 minimum wages is 4,860 lei, for a total of 12,860 lei, roughly 26% of the gain and about $2,700.

Non-residents and double tax treaties

A non-resident pays tax only on Romanian-source income. Pay for work done in Romania is taxed exactly as for a resident: 10% plus contributions. On passive income, the Romanian payer withholds the tax.

To apply a reduced rate, the recipient gives the payer a tax residency certificate from its home country before the payment.

Romania's tax treaties

Romania has more than 90 tax treaties. Among post-Soviet states it has treaties with Ukraine, Moldova, Belarus, Kazakhstan, Uzbekistan, Turkmenistan, Tajikistan, Georgia, Armenia, Azerbaijan, Latvia, Lithuania and Estonia. Compare with taxes in Moldova. Withholding rates under selected treaties:

Where two rates are shown, the lower one usually depends on the holding or the type of income. A treaty never raises the domestic rate, so interest to an individual stays at 10%.

The convention with Russia, signed in Moscow on 27 September 1993, does not work in 2026: from 8 August 2023 Russia suspended its key articles, 5-23 and 25, and in August 2024 the Romanian government approved a reciprocal suspension of the whole convention. Dividends, interest and royalties between the two countries are taxed at domestic rates, and because the Romanian Code grants a foreign tax credit only under a treaty that is being applied, the same income can be taxed twice.

If you keep income abroad, from rent, deposits or a business, review the structure with Murblz specialists before the move, not after the first letter from the Romanian tax authority.

Filing, deadlines and penalties

Late payment attracts interest of 0.02% a day plus a penalty of 0.01% a day on the amount due. Where tax was under-declared or not declared and this is found in an audit, a non-declaration penalty of up to 0.08% a day applies instead of the late payment penalty. The general limitation period is 5 years, counted from 1 July of the year after the tax year.

ANAF cross-checks data actively: e-invoices, SAF-T files, value added tax data, information from foreign banks and brokers under the Common Reporting Standard and, from 2026, from crypto platforms. Most communication happens through the SPV online account (Spațiul Privat Virtual) and in Romanian.

What this means if you are relocating

Romania has some of the lowest headline rates in the European Union, but the 10% and 1% figures are easy to misread. What to know before you move:

Employment is expensive for the employee. A 10% tax sounds good, but with 35% in contributions an employee gives up 41.5% of gross pay. Neighbouring Bulgaria also has a 10% income tax, but employee contributions there are clearly lower and capped.

Taxes are going up. Since mid-2025 value added tax has risen from 19% to 21%, tax on dividends and crypto from 10% to 16%, the micro-enterprise ceiling has fallen from $560,000 (€500,000) in 2024 to $113,000 (€100,000) in 2026, and local property taxes have multiplied. With the budget deficit under European Commission scrutiny, assume rates may keep moving.

The micro regime does not suit everyone. 1% of revenue looks attractive, but it needs a real employee, one such company per owner and revenue under $113,000 (€100,000), and dividends are then taxed at 16% plus CASS. For a high-earning consultant a PFA or a standard SRL can work out better, so run the numbers on your own figures.

Residency applies retroactively. After 183 days you are resident from the day you arrived, foreign income included.

Not every treaty works. Rent, interest and dividends from a country whose treaty with Romania is suspended can be taxed in both countries with no credit.

Passport and domicile. Romanian citizenship alone does not change your taxes, but a Romanian address on your identity card can make you resident, and a later move to a non-treaty country keeps you taxable in Romania for 3 more years.

Paperwork and language. Questionnaires, returns and correspondence with ANAF are in Romanian, and foreign documents need certified translations.

Related guides: all Romanian programmes and taxes by country.

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