Question 1

How is income tax calculated in Romania in 2026?

Accepted Answer

Romania uses a flat income tax rate of 10% on most personal income types including salaries, self-employment income, and pensions (above RON 3,000/month threshold). However, starting 2026, dividends are taxed at 16%, capital gains and cryptocurrency at 16%, and gambling income at progressive rates from 4% to 40%. Income from property transfers is taxed at 3% if held under 3 years, 1% if held over 3 years. The flat 10% rate applies to gross salary minus mandatory social contributions (CAS 25% and CASS 10%).

Question 2

Do digital nomads pay tax in Romania?

Accepted Answer

Digital nomads in Romania benefit from tax exemptions under Law 69/2023. If you stay less than 183 days in any 12-month period, you're not considered a tax resident and pay no Romanian income tax or social contributions on foreign-sourced income. After 183 days, you become a tax resident liable for 10% income tax plus social contributions on worldwide income. Romania's digital nomad visa requires minimum monthly income of €3,700-3,950 (approximately RON 18,500) and is valid for 12 months, renewable once.

Question 3

What are the social security rates in Romania 2026?

Accepted Answer

Employee contributions total 35%: CAS (pension insurance) 25% and CASS (health insurance) 10% of gross salary. Employer pays CAM (labor insurance) 2.25% of gross salary (can vary 0.15%-0.85% based on activity risk). For special working conditions, employers pay additional CAS: 4% for particular conditions, 8% for special conditions. Self-employed pay on net income from independent activities. CASS ceiling increased to 72 minimum gross salaries (RON 311,400 annually for 2026).

Question 4

What deductions can I claim in Romania?

Accepted Answer

Personal deductions include: RON 300/month tax-free for minimum wage earners (January-June 2026), reducing to RON 200/month (July-December 2026). Voluntary private pension contributions up to €400/year. Private health insurance up to €400/year. Meal vouchers subject only to income tax. Gift vouchers up to RON 300 for special occasions. Dependent spouse and children deductions. Business expenses for self-employed including 40% flat rate deduction for intellectual property income. Special IT sector exemptions ended in 2025.

Question 5

When do I need to file a tax return in Romania?

Accepted Answer

Annual tax return deadline is May 25 for previous tax year. Employees with single employer don't need to file if employer handles all withholding. Must file if: multiple income sources, self-employment income, capital gains, cryptocurrency transactions, rental income, income from abroad, or claiming additional deductions. File through ANAF (National Agency for Fiscal Administration) portal. Quarterly declarations required for certain self-employed activities. Social contributions declared monthly via Form D112 by 25th of following month.

Question 6

How does Romania tax cryptocurrency in 2026?

Accepted Answer

Cryptocurrency gains taxed at 16% flat rate starting January 1, 2026 (increased from 10%). Tax applies to net gains from virtual currency transfers. Mining and staking rewards considered taxable income. Must declare via annual Single Tax Return. If trading through Romanian intermediaries, tax may be withheld at source. CASS health contribution of 10% may apply if crypto income exceeds 6 minimum gross salaries annually. Losses can offset gains within same tax year. Keep detailed transaction records as ANAF scrutinizes crypto activities.

Question 7

Are there tax incentives for businesses in Romania?

Accepted Answer

Microenterprise regime: 1% tax on turnover (reduced from 3% in 2026) for companies with revenue under €100,000 (reduced from €250,000) and meeting employee requirements. Standard corporate tax 16%. Startups and tech companies can benefit from various incentives. R&D tax credits available. Free trade zones offer benefits. Special Economic Zones provide incentives. Construction, IT, and agriculture sectors lost previous exemptions in 2025. Minimum turnover tax (IMCA) 0.5% for large companies over €50M revenue.

Question 8

What is Romania's dividend tax rate in 2026?

Accepted Answer

Dividends taxed at 16% flat rate starting January 1, 2026 (increased from 10% in 2025). Applies to both resident and non-resident individuals and legal entities. Tax withheld at source by paying company. No additional income tax or social contributions on dividends. Double taxation treaties may reduce rate for non-residents. EU Parent-Subsidiary Directive applies for qualifying companies. Dividends distributed based on 2025 interim financial statements still taxed at 10%. Final 16% rate applies to distributions from 2026 profits.

Question 9

What is the minimum wage in Romania 2026?

Accepted Answer

National minimum gross wage: RON 4,050/month (approximately €815) for standard sectors. Construction sector: RON 4,582/month (approximately €920). Agriculture and food industry: RON 4,050/month. From July 1, 2026, minimum wage increases to RON 4,325/month. These rates apply to 165.334 average monthly working hours. Employees earning minimum wage receive RON 300 tax exemption (January-June) and RON 200 (July-December 2026), exempt from income tax and social contributions.

Question 10

How do I register as self-employed in Romania?

Accepted Answer

Register with Romanian Trade Registry as PFA (Persoana Fizica Autorizata - Authorized Natural Person) or II (Intreprindere Individuala - Individual Enterprise). Complete registration with ANAF for tax purposes within 30 days. Choose taxation regime: flat 10% income tax on net income (after 40% deduction for IP rights), or microenterprise 1% on turnover if eligible. Pay CAS 25% and CASS 10% on income exceeding minimum thresholds. File quarterly declarations and annual tax return. Keep proper accounting records. Consider Pillar II pension contributions.

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FAQ

How is income tax calculated in Romania in 2026?

Do digital nomads pay tax in Romania?

What are the social security rates in Romania 2026?

What deductions can I claim in Romania?

When do I need to file a tax return in Romania?

How does Romania tax cryptocurrency in 2026?

Are there tax incentives for businesses in Romania?

What is Romania's dividend tax rate in 2026?

What is the minimum wage in Romania 2026?

How do I register as self-employed in Romania?

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