Eastern Europe · EU Member State

Romania

Romania combines a 10% flat personal income tax with a turnover-based micro-enterprise regime for qualifying small companies. Costs remain relatively low by EU standards, and Romania still posts top-tier fixed-broadband results, but tax residence can arise through domicile, permanent-home, and centre-of-vital-interests tests as well as day count.

Photo by Katie Moon on Unsplash

Suitability

•Flat 10% personal income tax on worldwide income

•Micro-enterprise regime: 1% tax on turnover up to €100k (from 2026; 3% rate eliminated)

•Full EU membership — SEPA banking, free movement

•Bucharest ranked among the cheapest EU capitals

•Very strong fixed broadband — Romania ranked 17th globally in Ookla’s March 2026 fixed-broadband index

•Schengen member (full integration since 1 January 2025)

Tax

Personal Rate10% flat

Corporate Rate16% standard corporate income tax; micro-enterprise regime remains 1% or 3% depending on conditions, with the revenue ceiling falling to €100,000 from 1 January 2026

Tax SystemFlat-rate residence-based; micro-enterprise option for small companies

Pillar Two

P2: ADOPTED

Romanian tax residents generally pay 10% flat income tax on worldwide income. Companies outside the micro-enterprise regime pay 16% corporate tax; qualifying micro-enterprises (turnover ≤€100k from 2026) pay 1% on revenue (3% rate eliminated). For digital nomads, the Romanian tax and social-insurance exemption is tied to the statutory nomad status and only applies while presence in Romania does not exceed 183 days in any 12 consecutive months ending in the relevant calendar year.

High-volatility checks

Micro-enterprise thresholds, corporate updates, and digital nomad tax carve-outLast checked2026-04-20

Romania’s headline rates are stable, but micro-enterprise eligibility, dividend changes, and the statutory digital-nomad exemption still need current checking against live law and tax summaries.

PwC Tax Summaries — Romania individual taxes on personal income·PwC Tax Summaries — Romania corporate taxes on corporate income·PwC Tax Summaries — Romania corporate significant developments·LEGE nr. 69/2023 — Romania digital nomad tax changes

· VERIFIED: 2026-04-20

Residency

Romanian tax residency is a tax analysis rather than a permit label. ANAF guidance treats domicile in Romania, a permanent home available in Romania, the centre of vital interests in Romania, and presence exceeding 183 days in any 12 consecutive months ending in the relevant calendar year as main elements in the residency determination.

Residency TestROUTE & STATUS SPECIFIC

Common Routes

•EU/EEA/Swiss citizens — free-movement route; register residence with IGI after more than 3 months, with the registration certificate issued the same day and valid for up to 5 years
•Non-EU nationals — national long-stay visa route for the relevant purpose, followed by a residence-permit filing with IGI after entry
•Digital Nomad route (D/AS) — long-stay visa for non-EU remote workers for foreign employers or foreign-owned companies; the visa is issued for 90 days, the first temporary-stay extension is granted for 6 months, later extensions can be granted if conditions continue, and the income threshold remains at least 3x the Romanian average gross monthly salary

High-volatility checks

Romanian tax-residency triggers beyond the 183-day countLast checked2026-04-20

Romanian tax residency is not determined by presence alone: domicile, permanent-home availability, and centre-of-vital-interests analysis can matter alongside the 183-day test.

D/AS digital nomad and residence-registration route detailsLast checked2026-04-20

Romania’s immigration position mixes EU free-movement registration, national long-stay visas, and a digital-nomad route whose visa duration and extension mechanics should be checked against current IGI / MAE guidance.

ANAF — Ghid privind rezidența fiscală a persoanelor fizice (2023)·IGI — Residence registration·MAE eVisa — Types of visas / long-stay visa D and D/AS·LEGE nr. 22/2022 — Digital nomad visa and stay extensions

· VERIFIED: 2026-04-20

Cost

OverallLow (€1,200–€1,800/month in Bucharest)

Housing€540–€720/month for a 1-bed in Bucharest city centre

Coworking€85–€280/month for a dedicated desk

Lifestyle

ClimateContinental; hot summers (30–35 °C), cold winters with snow

TimezoneEET (UTC+2) / EEST (UTC+3) in summer

LanguageRomanian; English widely spoken in Bucharest and major cities, especially in tech communities

InternetExcellent — Ookla ranked Romania 17th globally for fixed broadband median download speed in March 2026

Family FitModerate — international schools available in Bucharest; public healthcare improving but private clinics widely used by expats

Cautions

The micro-enterprise regime is condition-based; crossing the €100,000 ceiling (from 2026) or failing other tests can move a company to the 16% corporate regime. Micro-enterprises may face Pillar Two top-up if part of in-scope MNE group (effective rate <15%).
Social health contributions (CASS) can apply to some passive income once statutory thresholds are met.
Romanian tax residence is not only a 183-day issue: domicile, permanent-home availability, and centre-of-vital-interests analysis can matter even when the headline day count is not the only factor in view.
Healthcare infrastructure outside major cities varies; private cover is common among expats.

Keep researching Romania

Use this profile as a starting point, then confirm the relevant tax, residency, and business rules with a licensed professional before you act.