Short tax guide to newcomersKreston Romania
The number of foreign people choosing to settle in Romania is increasing, slowly but surely. Many authors or freelancers can ignore the poor road infrastructure as long as they have one of best internet connection in the world to deliver their services. Taxes may also be attractive in spite a certain lack of predictability, specifically in administration.
Here is a short “to do” list from tax perspective once you arrive in Romania to stay:
- Submit a questionnaire to the tax office in order to determine the fiscal residency.
- Register as freelancer with the Trade Registrar or directly with the tax office in case of liberal professions.
- Register with the tax office and obtain the credentials to access the Private Virtual Area where returns are submitted online and records of debts and payments are available.
- Submit Personal Income tax return where personal income for the relevant year must be estimated. The taxes are:
|Type of income||Income tax||Pension insurance||Health insurance|
|Services provided as freelancer||net income||10%||12 minimum wages – RON 24,960 in 2019*||25%||12 minimum wages – RON 24,960 in 2019*||10%|
|Dividends||gross income||5%||13 minimum wages – RON 24,960 in 2019*||10%|
|Copyrights||net income (60% of the gross income)||10%||12 minimum wages – RON 24,960 in 2019**||25%||12 minimum wages – RON 24,960 in 2019*||10%|
|Capital gains||net income||10%||12 minimum wages – RON 24,960 in 2019*||10%|
|* due only if the income from all sources except salaries exceed the basis|
|** due only if the income from all sources except salaries exceed the basis and the person does not obtain salaries|
Once the person is considered a Romanian tax resident, the income derived from all sources and countries is subject to tax in Romania.
- Submit final Personal Income tax return. The deadline to submit the return and pay the taxes is March 25th of the following year. The Government may decide to postpone the deadline.