• Contributions to voluntary health insurance premiums and medical subscriptions up to a limit of EUR400 per tax year
• The cost of subscriptions for the use of sports facilities for the practice of sport and physical education for maintenance, prophylactic or therapeutic purposes up to a limit of EUR100 per tax year
The employer is responsible for determining the inclusion order of these benefits within the nontaxable limit of 33% of the basic salary. The amounts exceeding the relevant thresholds, as provided by the Romanian Tax Code, are subject to all salary taxes.
Income from independent activities. Income from independent activities includes income from production activities, income from commerce, income from rendering of services and income from freelance activities, whether performed individually and/or in a form of association, as well as related activities.
The net taxable income from freelance activities is computed as gross income less specified deductible expenses. Individuals engaged in freelance activities must make tax payments by 25 May of the following year. In the case of independent activities performed under contracts for sports activity, the income payer (the legal entity or other entity that has the obligation to maintain accounting records) must assess, withhold and pay the related income tax on a monthly basis.
Income derived by individuals from rental for tourism purposes of rooms located in their own homes, with a capacity for accommodation of more than five rooms is assessed as income from independent activities and is subject to tax based on the real system.
Income from intellectual property rights. Income from intellectual property rights includes income from the selling of any form of intellectual property rights, including the following:
• Copyrights and rights related to copyrights, including the creation of monumental art works
• Patents
• Designs
• Trademarks
• Geographical indications
• Topographies of semiconductor products
• Similar items
In the case of income from intellectual property rights derived from legal entities or other entities required to maintain accounting records, the income payer must assess, withhold and pay the related income tax on a monthly basis, by the 25th day of the month following the month it was withheld.
If the income from intellectual property rights is not derived from legal entities or other entities required to maintain accounting records, the taxpayer must pay the related income tax to the state budget.
Taxable income from intellectual property rights is computed by deducting from gross income expenses representing 40% of gross income.
Rental income. Gross rental income consists of amounts in cash or kind that are stipulated in rental agreements, as well as certain expenses borne by the tenant that are the landlord’s liability according to the law. The rental income is taxable in the tax year to which the rent relates, regardless of when the rent is effectively received.
Rental income also includes income derived by owners from the rental of rooms located in their own homes, with a capacity for tourist accommodation ranging from one room to five rooms.
If individuals are earning rental income from more than five rental contracts at the end of a tax year, such income is reassessed as income from independent activities beginning with the following year, and it is accordingly subject to the rules applicable to that category.
Starting 1 January 2024, legal entities and entities with accounting obligations, must withhold, report and pay a 10% tax on net rental income from agreements with individual landlords, excluding agricultural and personal property tourism rentals. These entities are now responsible for tax calculations, with the final tax payable to the state budget by the 25th of the following month.
The taxable rental income is calculated by deducting a flat 20% expense rate from the gross income.
Investment income. Investment income includes the following:
• Dividend income
• Interest income
• Gains from transfers of securities (including stock option plans) and other operations involving financial instruments (including derivatives)
• Income from the transfer of financial gold
• Income from the liquidation of a legal entity
The first four of these categories of investment income are discussed below.
Dividends are any grant of benefits in cash or kind by a legal entity to shareholders or associates as a result of holding participation titles (with certain exceptions). For dividends distributed on or after 1 January 2023, the applicable tax rate is 8%. The tax rate is calculated, withheld and paid by the payer of dividend. The tax must be paid by the 25th day of the month following the dividend payment. For dividends declared but not paid until the end of the year, the tax is payable by 25 January of the following year. Amounts received from holding participation titles in closed investment funds are treated similarly to dividends. An 8% final withholding tax is imposed on dividends. The dividend tax rate is increased from 8% to 10% for dividends distributed from 1 January 2025.
Taxable income from interest is considered to be any interest from current account or sight deposits, term deposits, savings instruments and civil contracts or interest paid by the company issuing debt securities during the loan period. A 10% final
Income from other sources. Any income from other sources, as defined by the law, is subject to a 10% income tax, calculated, withheld and paid by the payer of such income.
Income whose source is not identified. As of 1 July 2024, any income whose source is not identified is subject to a 70% income tax applied to the tax base adjusted according to the procedures and indirect methods for the reconstitution of revenues or expenses. The tax authorities compute the income tax and late payment penalties.
Deductions. Individuals domiciled in Romania and individuals meeting a certain residence condition for worldwide income taxation are entitled to personal deductions, which vary according to gross monthly income and number of dependents of the individuals.
Starting with salary income obtained in 2023, particular provisions apply; individuals are entitled to a personal deduction consisting of a basic personal deduction and additional personal deduction, which vary according to gross monthly income and number of dependents of the individuals. The basic personal deduction is granted to those individuals whose gross monthly salary income at the place of the basic function is up to RON2,000 above the level of the minimum gross basic salary income in force in the month in which the salary income was realized. No basic personal deduction is allowed for gross monthly income higher than the threshold of RON2,000 above the level of the minimum gross basic salary income.
The additional personal deduction is granted in the following amounts:
• 15% of the guaranteed gross national minimum salary income for individuals up to 26 years old who derive salary income up to the threshold mentioned above
• RON100 per month for each child up to 18 years old, if the child is enrolled in an educational unit, to the parent realizing salary income, regardless of the salary income level
Rates. As discussed in Income subject to tax, most types of income are subject to tax at a flat rate of 10%.
B. Other taxes
Inheritance and gift taxes. No taxes are levied on inheritances or gifts, except for revenue subsequently derived from these items.
Property taxes. For property tax purposes, the taxable value of a property is computed based on multiple factors, including but not limited to, the following:
• Property surface
• Type of building
• Location of the property
• Age of the building
• Potential construction works
• Purpose for which the property is used (i.e., residential or nonresidential)
Each Local Council establishes the applicable rate.
Special taxes. As of 1 January 2024, a special tax of 0.3% is due from individuals on high-value real estate residential buildings
with a taxable value of more than RON2.5 million. The tax is due on the difference between the taxable value of the residential building, as communicated by the tax office, and the threshold of RON2.5 million.
A similar special tax of 0.3% is due from individuals owning vehicles registered in Romania with a purchase value over RON375,000 (approximately EUR75,000). The tax is due on the difference between the purchase value and the threshold of RON375,000. This tax will be due for five years from the time the car was purchased. Such tax is also due from companies.
C. Social security and health care charges
Income subject to social security and health care charges is discussed below.
Employment income. The following rates are applicable for employment income:
• Employee social charges: 35% (25% pension contribution and 10% health fund contribution)
• Employer social charges: 2.25% (representing the work insurance contribution, which includes unemployment, medical leave, work accidents and the salary guarantee fund)
Private income (other than employment income). The following types of private income, other than employment income, are subject to social security contributions:
• Income from independent activities
• Income from intellectual property rights
Under certain conditions, individuals who derive income from independent activities and/or intellectual property rights are liable to pay social security contributions if the cumulated net annual income meets 12 or 24 minimum salaries per economy (approximately EUR8,000 or EUR16,000, respectively, for 2024). The contribution rate of 25% is applied to an amount chosen by the taxpayer that cannot be lower than the following:
• 12 minimum national salaries per economy, if the annual realized income is between 12 and 24 minimum national salaries per economy
• 24 minimum national salaries per economy, if the annual realized income exceeds 24 minimum national salaries per economy
The following types of private income, other than employment income, are subject to the health fund contribution:
• Income from independent activities
• Income from intellectual property rights
• Rental income
• Agricultural, forestry and fisheries income
• Investment income
• Income from other sources, as provided by the law
From January 2024, with respect to income from independent activities, the health fund contribution applies to the annual income earned. The contribution calculation is based on a minimum of six gross national minimum wages and capped at 60 gross minimum wages. The health fund contribution is taxdeductible.
Bosnia and Mexico
Taiwan (e)
Herzegovina (c) Micronesia Timor-Leste
Brazil
Moldova (c) Tonga
Brunei Darussalam Monaco Trinidad and Canada Montenegro (c) Tobago
Chile New Zealand Tuvalu
Colombia Nicaragua Ukraine (c)
Costa Rica
North Macedonia (c) United Arab
Dominica Palau Emirates
El Salvador Panama United Kingdom
Georgia (c) Paraguay United States
Grenada Peru Uruguay
Guatemala Samoa Vanuatu
Honduras San Marino Vatican City
Hong Kong (a) Serbia (c)(d) Venezuela
(a) The exemption from the visa obligation applies only to Hong Kong passport holders.
(b) The exemption from the visa obligation applies only to Macau passport holders.
(c) The exemption from the visa requirement applies only to holders of biometric passports.
(d) The exemption does not apply to holders of Serbian passports issued by the Department of Serbian Coordination (Koordinaciona Uprava).
(e) The exception from the visa obligation applies only to holders of passports issued in Taiwan that contain the identification card number.
In addition, the exemption from the visa requirement applies to British nationals of a territory subordinated to the British government.
Citizens of other countries can obtain short-term or long-term visas, which may be single- or multiple-entry visas. Special conditions apply to foreign nationals planning to set up businesses in Romania. Foreign citizens can obtain special short-term, multipleentry visas for frequent business trips.
G. Work authorizations
EU, EEA and Swiss nationals can be seconded to Romania without obtaining a work authorization. The seconded individuals must apply directly for a registration certificate.
In addition, companies based in Switzerland or EU or EEA Member States can second non-EU/EEA/Swiss nationals to Romania without obtaining a work authorization. The seconded individuals must apply directly for a residence permit and are required to present to the Romanian authorities the valid residence permit obtained from Switzerland or an EU/EEA Member State.
The secondment of non-EU nationals (third-country nationals) is limited to one year within a five-year period. An extension of their stay in Romania may be granted if a work authorization for local employment purposes is obtained.
As of September 2016, the EU directive with respect to intracompany transfer (ICT) workers was transposed in the Romanian immigration legislation. Therefore, employees of companies outside the EU, EEA and Switzerland who are subject to an ICT in
a leadership position or as a specialist can be seconded to Romania for a period of up to three years under certain conditions. A new type of work authorization for secondment purposes — the ICT work authorization — has been introduced. The secondment can be extended after the initial period of three years if the ICT worker leaves Romania and fulfills the conditions for initiating a new secondment process. Foreigners must be hired by a Romanian company before the assignment ends, or immediately after, if they want to continue carrying out activities in Romania without interruption.
Foreigners assigned as heads of foreign company branches and foreign citizens named administrators of Romanian companies only need to apply for the long-term visa and the residence permit.
Citizens of Moldova, Serbia and Ukraine (see next paragraph for special provisions applicable to Ukrainian nationals) employed in Romania with a full-time individual employment contract for a maximum period of nine months in a calendar year are exempt from obtaining a work authorization. They need to apply only for the long-term visa for work purposes and the residence permit.
In March 2022, the Romanian government issued an Emergency Ordinance that provided that Ukrainian nationals seeking shelter in Romania will be exempt from the requirement of obtaining a work authorization and a long-term visa. They can now be directly employed and proceed with requesting a Romanian residence permit.
Special conditions could apply depending on the intended duration of the employment contract.
In March 2024, Romania implemented major changes to its regulations governing EU Blue Cards and employment permits for certain highly qualified workers, among others. A new category of workers called “mobile highly skilled workers” was introduced. Under this category, third-country nationals who hold a valid Blue Card issued in another EU Member State will be able to enter Romania for up to 90 days in any 180-day period to carry out an economic activity without obtaining work authorization.
Third-country nationals who hold a valid EU Blue Card issued in another EU Member State and have resided in another EU Member State for at least 12 months, or in more than one EU Member State with at least six months in the last country of residence, will be able to enter, settle and work in Romania as a highly skilled worker without obtaining work authorization or a long-stay work visa. These individuals must apply for an EU Blue Card in Romania within one month of entering the country. Their dependents will be exempt from the family reunification procedure and must directly apply for residence rights.
H. Residence permits
Both short-term and long-term visas allow foreign nationals to stay for up to 90 days within a 180-day period from the date of entry to their date of exit from Romania. Although the short-term