Romania
Top Income Tax
10%
Marginal rate
Corporate Tax
16%
Standard rate
VAT / Sales Tax
19%
Standard rate
Capital Gains
10%
Standard rate
Overview
Romania offers competitive tax rates with a flat 10% income tax and a generous microenterprise regime. The 1% turnover tax for small companies is one of Europe's best deals. Bucharest and Cluj have vibrant tech scenes with a growing pool of talent.
Income Tax Brackets
| Income Range (RON) | Tax Rate |
|---|---|
| 0+ | 10% |
Flat 10% rate. Special 1% rate for microenterprises with turnover under 500k EUR.
Corporate Tax
Standard Rate
16%
16% standard. 1% turnover tax for microenterprises (under 500k EUR revenue).
VAT / Sales Tax
Standard Rate
19%
Reduced Rates
5%, 9%
9% on food, accommodation, restaurants. 5% on housing (under threshold).
Capital Gains Tax
Standard Rate
10%
10% flat rate on capital gains.
Social Security Contributions
Employee
35%
Employer
2.25%
Self-Employed
25%
Employee pays bulk: 25% pension + 10% health. Employer: 2.25% labor insurance.
Special Tax Regimes
Microenterprise Tax
1% turnover tax (or 3% without employees) for companies with revenue under 500k EUR.
Eligibility: Company with revenue under 500k EUR and at least 1 employee.
Digital Nomad Visa
Digital nomad visa available. Must earn at least 3x Romanian average gross salary.
Pros & Cons
Pros
- Flat 10% income tax
- 1% microenterprise tax
- Low cost of living
- EU member
- Growing tech hubs
Cons
- High employee social contributions (35%)
- Infrastructure challenges
- Bureaucratic complexity
- Digital nomad visa requirements
Living Indicators
Cost of Living Index
Very affordable
Quality of Life Index
Average
Best For
Data Sources
Tax rate data for Romania is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- Romania government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.