Taxes in Romania

Who counts as a tax resident

A person is treated as a resident of Romania if they:

• live in Romania;
• have their centre of vital interests in Romania;
• are present in Romania for more than 183 days during any 12 consecutive months ending in the calendar year;
• are a Romanian citizen working abroad as a public servant.

Romanian citizens living in Romania are taxed on their worldwide income (except salary for work carried out abroad) unless they prove tax residency in another country with which Romania has a double taxation treaty. Non-residents and foreigners pay tax only on income received in Romania.

The main tax rates

• Personal income tax - normally a flat rate of 10%. There are exceptions: the rates on dividends, on income from the sale of property and from gambling depend on the level of income.
• Corporate income tax - 16%. Romanian companies pay on their worldwide income, foreign ones - only on income from Romania.
• VAT - 19%, with reduced rates of 9% and 5% on certain goods and services.

Property and social contributions

• Tax on residential buildings - from 0.08% to 0.2%.
• Tax on non-residential buildings - from 0.2% to 1.3%, and in certain cases 5%. Local authorities can increase the tax by a further 50%.
• Landowners pay a land tax set as a fixed amount per square metre depending on the use and the location of the plot.
• Employees pay pension contributions at 25% and health insurance at 10%.

What makes the Romanian tax system convenient

FAQ