What is the cost of living in Romania, really?
It is the gap between your gross income and your prices. Romania taxes employment income at a flat 10%25, but contributions take a larger slice than the tax itself.
We do not publish rent or grocery figures: we have no official, dated source for them. What we can show precisely is the income side, which is set by law. Official price statistics are published by the National Institute of Statistics (INS).
From gross to net: salary deductions step by step
Out of 100 RON gross, about 41.5 goes to the state before you pay for anything.
An employee keeps 58.5% of gross pay before personal deductions. The order of the calculation matters:
- pension contribution (CAS): 25%2 of gross;
- health contribution (CASS): 10%2 of gross;
- income tax: 10%25 of what remains after CAS and CASS: 10% × 65 = 6.5 RON per 100 RON gross;
- result: 100 × (1 − 0.25 − 0.10) × (1 − 0.10) = 100 × 0.65 × 0.90 = 58.5 RON net per 100 RON gross, before any personal deduction.
Living cost in Romania on the minimum wage
The minimum gross wage is RON 4,325/month1. Apply the 58.5% rule and you get the lower bound of the net amount a full-time minimum-wage worker receives: a personal deduction shrinks the taxed base, so it can only raise the net.
This matters for work permits. A job offer at minimum wage is legal, but check that the net sum covers rent in the city you move to before you sign. Our work permit guide shows how the employer files for the aviz de muncă at IGI, and how the D/AM visa follows at the consulate.
What your salary costs the employer
On top of gross pay, the employer pays 2.25%2 work insurance contribution. So 100 RON gross costs the company 100 × (1 + 0.0225) = 102.25 RON.
For founders this is the number to budget: a salary you pay yourself from your own SRL carries the same contributions as any other employee’s.
Founders: salary, dividends and self-employed income
Dividends paid to individuals are taxed at 16%23. Health contribution on dividends is due in bands of minimum wages, not as a percentage of the payout.
For self-employed income the CASS base is capped at 7224 minimum gross wages. Which route leaves you more depends on the company’s profit; see micro-enterprise tax and the tax system overview.
VAT in Romanian prices
Standard VAT is 21%23; the reduced rate is 11%3. Both are already inside shop prices, so a price tag is what you pay.
The rates changed from 1 August 2025. Price comparisons made before that date, including cost of living figures from 2023, are not comparable with today’s. More on VAT rates in Romania.
Common mistakes when budgeting a move
Most budget errors come from reading the wrong number:
- comparing a Romanian gross salary with a net salary at home;
- forgetting that tax residency starts after more than 183 days in any 12 months, or earlier if your centre of interests moves;
- using a cost of living figure from a year before the 2025 VAT change;
- accepting a job offer quoted as net without a written gross figure.
What this guide does not cover
- Rent, food and transport prices: check INS statistics with a date.
- Conversions to euros or US dollars: exchange rates change daily.