Income tax in Romania and other 2026 tax rates
Romania income tax is a flat 10%17 on salaries, freelance and rental income; there are no progressive brackets. Social contributions are charged on top of it, so the real burden on a salary is higher.
- Pension contribution (CAS), withheld from employee
- 25%1
- Health contribution (CASS), withheld from employee
- 10%1
- Employer work insurance contribution
- 2.25%1
- Reduced VAT rate
- 11%2
- Minimum gross wage
- RON 4,325/month3
Figures checked
From 1 January 2026 dividends and crypto gains are taxed at 16%128. Standard VAT has been 21%12 since 1 August 2025.
Rates apply to 2026 income. A double tax treaty can lower withholding on dividends paid abroad if you hold a tax residence certificate.
Small companies can pay revenue tax instead of profit tax — see micro-enterprise tax. VAT details are on VAT rates in Romania.
Romania tax rate for foreigners: when you become resident
Resident if domiciled in Romania, or centre of vital interests in Romania, or present more than 183 days in any 12 consecutive months, or a Romanian citizen working abroad for the Romanian state.110
You are likely a Romanian tax resident if
- You spend more than 183 days in Romania in any 12-month period.
- Your home, family or main economic interests are in Romania.
- You hold a residence permit for work and live here most of the year.
You are likely not resident if
- You stay under 183 days and keep your home and family abroad.
- You hold a digital nomad visa and are still inside the first 6 months5.
A resident pays Romanian tax on worldwide income. A non-resident pays only on income from Romanian sources. Foreigners pay the same rates as Romanians.
Remote workers: see the remote work visa for the tax-free period.
Ask about your residencySpecial tax regimes in Romania
Micro-enterprise taxSmall companies (SRL) with at least one employee1%
Revenue-based tax instead of CIT for small companies with at least one employee, private ownership, and revenue under the threshold; excluded sectors include banking, insurance, gambling, oil and gas. Only one company per >25% shareholder may apply the regime.
A company with revenue under €100,00016 pays 1%12 of revenue instead of 16%16 profit tax. Details: micro-enterprise tax.
Who this is not for Banking, insurance, gambling, oil and gas. Only one company per shareholder holding over 25% may use it.
Digital nomad tax treatmentDigital nomad visa holders6 months
Digital nomad visa holders owe no Romanian income tax or social contributions for the first 6 months; once 183 days in any 12-month period are exceeded they become tax resident.
No Romanian income tax or social contributions for the first 6 months5.
Who this is not for Anyone who passes 183 days in Romania within 12 months: they become tax resident.
Regime conditions are set by the Tax Code; ANAF checks them after filing.
Residency test: see when you become resident.
Registering a company or VAT in Romania? We file it.
From €450usually 10–45 working days- You describe your income and business.
- We confirm the taxes and the filings.
- We prepare and file with ANAF.
Indicative prices; the final quote depends on your case.
Programme updates
Minimum gross wage RON 4,325 (GD 146/2026). MiCA transition ended with no designated Romanian CASP authority.
What this means for you: Minimum-wage contracts and CASS bases change from July.
Ministry of Justice, Portal Legislativ (legislatie.just.ro)Bursa
Dividend tax 10% -> 16% (Law 141/2025); micro-enterprise single 1% rate, revenue cap EUR 100,000; crypto gains tax 16%. Foreign worker quota 90,000 (GD 1169/2025).
What this means for you: Owners taking dividends keep less; micro-companies above the new cap move to profit tax.
Ministry of Justice, Portal Legislativ (legislatie.just.ro)Ministry of Justice, Portal Legislativ (legislatie.just.ro)Ministry of Labour, Family, Youth and Social Solidarity
Law 239/2025: SRL minimum capital RON 500; RON 5,000 for SRLs with turnover above RON 400,000 (compliance by 18 Dec 2027); CASS cap 72 minimum wages for 2026 income.
VAT small-business exemption threshold raised from RON 300,000 to RON 395,000.
What this means for you: More small businesses can stay outside VAT.
Law 141/2025: standard VAT 19% -> 21%; reduced rates 5%/9% -> single 11%.
What this means for you: Prices of most goods and services now include VAT at the higher rate.
How much tax in Romania: common questions
What is the tax rate in Romania?
Personal income tax is a flat 10%. Companies pay 16% on profit, or 1% of revenue as a micro-enterprise. Standard VAT is 21%.
How much is income tax in Romania on a salary?
Income tax is 10%. The employee also pays 25% pension and 10% health contributions, withheld by the employer.
Is the Romania tax rate for foreigners different?
No. Foreigners pay the same rates. What changes is scope: a tax resident is taxed on worldwide income, a non-resident only on Romanian income.
How are dividends taxed in Romania in 2026?
Dividends distributed from 1 January 2026 are taxed at 16%. EU parent companies holding at least 10% for a year can pay zero; treaty rates need a tax residence certificate.
What tax do IT freelancers pay in Romania?
A freelancer (PFA) pays the flat 10% income tax plus CASS; the CASS base is capped at 72 minimum gross wages. An IT company can use the micro-enterprise regime if it qualifies.
When must a company register for VAT?
When turnover passes RON 395,000. Registration is due by the date the threshold is exceeded. We prepare and file the VAT registration with ANAF.
Ask about taxes in Romania
Tell us what you earn, where you live and whether you run a company. We reply with the taxes that apply and a quote for any filing.
- We read your message and reply with a written quote for our part of the work.
- You get the document list for your case, marked with what needs an apostille or a sworn translation.
- Nothing is filed and nothing is charged until you accept the quote.
Sources (11)
- 1Law 227/2015 on the Tax Code (consolidated)
Used for Corporate income tax, Personal income tax (flat), Dividend withholding tax, Dividend tax for individuals, Standard VAT rate, VAT registration threshold, Pension contribution (CAS), employee, Health contribution (CASS), employee, Employer work insurance contribution, Micro-enterprise tax rate, Micro-enterprise revenue cap, Tax residency rule
- 2Law 141/2025 on certain fiscal-budgetary measures (MO 25 Jul 2025)
Used for Dividend withholding tax, Dividend tax for individuals, Standard VAT rate, Reduced VAT rate, Crypto gains tax, Micro-enterprise tax rate
- 3Government Decision 146/2026 on the minimum gross wage (RON 4,325 from 1 Jul 2026)
Used for Minimum gross wage
- 4Majorarea plafonului de scutire de TVA de la 300.000 la 395.000 lei
Used for VAT registration threshold
- 5Digital nomad visa (RO-2022-3/3841)
Used for Digital nomad exempt period
- 6Romania - Corporate - Taxes on corporate income
Used for Corporate income tax, Micro-enterprise revenue cap
- 7Romania - Individual - Taxes on personal income
Used for Personal income tax (flat)
- 8Romania - Corporate - Withholding taxes
Used for Dividend withholding tax
- 9Romania - Individual - Significant developments
Used for Crypto gains tax
- 10Romania - Individual - Residence
Used for Tax residency rule
- 11