Personal Income Tax 2026 — Romania

Applied to gross salary minus mandatory social contributions (CAS 25% + CASS 10%). Net income = Gross - 35% contributions - 10% tax. Approximately 58.5% of gross salary reaches employee's account. Employer withholds and pays monthly.

Tax on net income from independent activities, freelancing, and business. 40% flat rate deduction available for intellectual property rights income. Business expenses fully deductible. Can opt for microenterprise regime (1% on revenue) if eligible under €100,000 turnover.

Pensions taxed at 10% only on amounts exceeding RON 3,000 per month (approximately €600). Below threshold: tax-free. CASS also applies to pension income exceeding RON 3,000 for period August 2025 to December 2027, including foreign pensions.

Increased from 10% to 16% starting January 1, 2026. Applies to distributions from 2026 profits. Dividends from 2025 interim statements still 10%. Withheld at source by paying company. No additional income tax or social contributions. Double taxation treaties may reduce rate.

16% on gains from securities not traded through Romanian intermediaries. Through intermediaries: 1% if held over 365 days, 3% if held 180-365 days, 6% if held under 180 days. Romanian intermediaries withhold tax at source. Foreign intermediaries: taxpayer declares via annual return.

Virtual currency transfer gains taxed at 16% (up from 10% in 2025). Applies to all crypto transactions. Must declare via Single Tax Return by May 25. CASS 10% may apply if annual crypto income exceeds 6 minimum gross salaries. Losses offset gains in same year.

Property held under 3 years: 3% of transaction value. Property held over 3 years: 1% of transaction value. Main residence after 3 years: may be exempt. Tax based on transaction value, not gain. Lower rates encourage long-term holding.

Minimum 4% rate (increased from 3% in 2025). Progressive scale up to 40% for amounts exceeding RON 66,750. Withheld at source by gambling operators. No deductions allowed. High maximum rate discourages large winnings accumulation.

Rental income from real estate taxed at 10%. Can choose real system (expenses deductible) or income norms system (40% flat deduction). Short-term tourism rentals: special regime with higher scrutiny. Must declare via annual return.

40% flat rate deduction from gross IP income. Tax applies to remaining 60%. Effective rate: 6% of gross income. Includes royalties, patents, copyrights. Social contributions (CAS/CASS) apply if exceeding minimum thresholds.

Income where source cannot be identified: 70% tax rate. Applied by tax authorities. Extremely high rate to discourage tax evasion. Burden of proof on taxpayer to demonstrate legitimate source. Rarely applied in practice.