Mazars short guide of moving to Romania: Tax perspective

7 November 2018 • Article

Mazars short guide of moving to Romania: Tax perspective

Given the membership to the European Union, Romania has a fully integrated employment market within the Single EU market and, as such, citizens of EU countries can freely come to Romania, reside here and perform activities, either as freelancers or employees of Romanian employers, as well as non-resident employers.

As such, foreigners working in Romania can either conclude employment contracts with Romanian companies, they can work in Romania based on foreign employment agreements concluded with foreign employers and further seconded to Romania, or can perform activities as self-employed individuals.

Generally, in accordance with the Romanian tax rules, foreign nationals performing employment or freelancer activities in Romania are liable to pay personal income tax on their Romanian sourced income, or if they spend sufficient time in Romania and depending on their personal and professional situation they become Romanian tax residents, they will be liable to pay personal income tax in Romania on their worldwide income.