Romania – Taxation of the income earned by non-resident individuals in Romania

January 6, 2012

The residence rules for taxation of the income earned by non-resident individuals have been amended with effect from 1 January 2012.

In accordance with the provisions of the Tax Code currently in force, a non-resident individual is required to pay tax on income sourced in Romania such as:

Before 1 January 2012, non-resident individuals were taxed only on the Romanian source income, and their worldwide income became taxable after spending 3 consecutive years in Romania.

With effect from 1 January 2012, a non-resident individual is taxed on their worldwide income after spending 1 year in Romania, if that individual has key interests in Romania or if that individual is present in Romania for a total period or periods of 183 days during any period of 12 consecutive months.

If the non-resident individual provides to the Romanian tax authority a certificate of residence confirming that he is resident in a state which signed a double tax treaty with Romania, then the provisions of the double tax treaty are applicable. The certificate of residence is valid in the year it is issued. The residence cannot be changed during the year.
Romania has signed over 80 double tax treaties.


Tax Code 2012 published by National Agency for Fiscal Administration

For further information or to discuss any of the issues raised, please contact Marilena Ene on +4021 230 01 71.


CELIA Alliance
CELIA Alliance members are identified here. Members of the CELIA Alliance are each independent law firms and do not practice law jointly with any other member of the CELIA Alliance. “CELIA Alliance” and “CELIA” are not trading names. For more information about the CELIA Alliance click here.

Content is for general information purposes only. The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice. If you require assistance in relation to any issue please seek specific advice relevant to your particular circumstances. In particular, no responsibility shall be accepted by the authors or by Abbiss Cadres LLP for any losses occasioned by reliance on any content appearing on or accessible from this newsletter. For further legal information click here.

If you would like to copy or otherwise reproduce this article then you may do so provided that: (1) any such copy or reproduction is for your own personal use or if it is made available to any third party it is done so on a free of charge basis; and (2) the article is reproduced in full together with the contact details, disclaimer and any logos as they appear on each article.

Leave a Reply

Your email address will not be published. Required fields are marked *