Romania

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) unless they prove by means of tax residence certificates that they qualify as tax residents of a state with which Romania concluded a double tax treaty (DTT).

Romanian citizens domiciled in Romania that prove the tax residency status in a state that does not have in place a (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 become taxable on their worldwide income starting with the date when they become tax residents in Romania (while respecting the provisions of the DTTs, where applicable). See the Residence section for the residence criteria.

Personal income tax rates

A flat PIT rate of 10% is generally in place. However, there are certain exceptions from this rule (e.g. the tax rate for dividends and for capital gains in certain cases, 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.