Romanian citizens domiciled in Romania are considered Romanian tax residents and are taxed on their worldwide income (except for salary income received from abroad for work performed abroad, which is tax exempt).
Romanian citizens domiciled in Romania that become residents of a state that does not have in place a double tax treaty (DTT) with Romania continue to be taxable in Romania on their worldwide income for the calendar year in which the change of residence occurs, as well as for the next three calendar years.
Romanian citizens not domiciled in Romania and foreign individuals, regardless of their domicile, are taxed in Romania only on income sourced in Romania, until the moment they become Romanian tax residents taxable on their worldwide income, if the case.
Non-resident individuals who meet the residence conditions (see the Residence section) become taxable on their worldwide income starting with the date when any of the mentioned criteria is met (while respecting the provisions of the DTTs, where applicable).
Personal income tax rates
A flat personal income tax (PIT) rate of 16% is generally in place. However, there are certain exceptions from this rule (e.g. the tax rate for dividends, the tax rate for income from the transfer of immovable property, the tax rate for income from gambling activities depends on the income level).
Local income taxes
There are no local taxes on personal income in Romania.