Romania Tax Rates
Romania features a flat 10% personal income tax rate, making it one of the lowest in Europe for personal taxation. The country levies a 16% corporate tax rate, a standard 19% VAT, and has a growing digital economy. Romania's tax system has undergone frequent changes, with significant social contribution reforms in 2018 shifting the burden from employers to employees. The micro-enterprise regime with a 1% tax rate on revenue has been popular among small businesses.
Top Income Tax Rate
10%
Corporate Tax Rate
16%
VAT / Sales Tax
21%
Capital Gains Tax
10%
Detailed Tax Information
Income Tax Brackets
Romania applies a flat 10% income tax rate on all personal income including employment, self-employment, and investment income. There is no tax-free allowance, though personal deductions (deducere personală) apply for employees with monthly gross income up to RON 2,000 (ranging from RON 300 to RON 510 depending on dependents). Romania's flat tax system, introduced at 16% in 2005 and reduced to 10% in 2018, is one of Europe's simplest.
| Income Range | Tax Rate |
|---|---|
| lei 0+ | 10% |
Corporate Tax
Romania levies corporate income tax at 16% on taxable profits. The popular micro-enterprise regime taxes companies with revenue up to EUR 500,000 at 1% of revenue (or 3% for companies without employees). The micro-enterprise regime has been repeatedly modified, with recent changes raising the revenue threshold and adjusting rates. Companies in the HoReCa sector may benefit from special provisions.
Standard Rate
16%
Small Business Rate
1%
Capital Gains Tax
Capital gains in Romania are taxed at the flat 10% rate. This applies to gains from shares, bonds, real estate, and other assets. A 10% CASS (health insurance contribution) also applies to investment income exceeding 6 minimum gross salaries per year, making the effective rate potentially up to 20% for significant investment income.
Rate
10%
VAT / Sales Tax
Romania applies a standard VAT (TVA - taxa pe valoarea adăugată) rate of 21% as of August 2025 (increased from 19%), with a unified reduced rate of 11% replacing the previous 5% and 9% rates. A 9% rate remains temporarily for new social housing. Romania's VAT system follows EU directives. The country has implemented SAF-T (Standard Audit File for Tax) reporting and electronic invoicing requirements.
Standard Rate
21%
Cryptocurrency Tax
Cryptocurrency gains in Romania are taxed at the flat 10% income tax rate. Additionally, CASS (health insurance) of 10% applies if total investment income exceeds 6 minimum gross salaries per year. Romania classifies crypto gains as income from the transfer of virtual currencies. Each disposal to fiat is a taxable event.
Tax Treaties
Romania has approximately 86 double taxation treaties in force. As an EU member with growing economic ties, Romania continues to expand its treaty network. Treaties follow the OECD Model with some modifications.
Treaty Network
86
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Romania
See how much you could save by moving here from your current country.
$-20,638
Tax in United States
$24K
24.4% effective
Tax in Romania
$45K
45% effective
Additional Cost
84.7%
more tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
