Guide to Freelancing in Romania

Guide to Freelancing in Romania

Here's a practical guide to starting and managing a freelance business in Romania, covering setup options, tax obligations, and financial management.

*Please be aware that we do not update this information in real time, so you should verify that the law has not changed recently.

Freelancing Overview in Romania

Freelancers in Romania often work as Authorized Physical Persons (PFA), which is similar to being a sole proprietor.

  • The Romanian tax system does not differentiate between freelancers and traditional employees, so taxes are filed under the same framework.

Steps to Register as a Freelancer in Romania

  1. Meet Basic Eligibility Requirements:

    • Be at least 18 years old.

    • Possess relevant qualifications (certificates, licenses, or training).

    • Clear a background check confirming no financial or criminal offenses.

  2. Register with the Trade Register Office:

    • This authorizes you to work legally as a PFA.

  3. Gather Necessary Documents:

    • Proof of qualifications.

    • Identification documents (passport or national ID).

    • Romanian address.

Taxes and VAT for Freelancers in Romania

Income Tax for Freelancers

  • Taxable income is calculated by deducting business expenses from gross income.

  • Taxes are reported annually, with returns due by 25 May of the following fiscal year.

VAT Registration

  • Required if annual earnings exceed 300,000 RON (approximately €60,000).

  • Registration is completed through the National Agency of Fiscal Administration (NAFA).

  • Documents required:

    • Identification papers.

    • Proof of income from the past year.

    • A criminal record check.

VAT Rates

  • 19%: Standard rate for most goods and services.

  • 9%: Reduced rate for specific services (e.g., food, medicines).

  • 5%: Reduced rate for cultural services.

  • 0%: Exempt services.

How to Start Your Freelance Business in Romania

  1. Choose a Business Structure:

    • Most freelancers register as PFAs.

  2. Register Your Business:

    • Provide a Romanian address.

    • EU residents can register and operate remotely, avoiding visa requirements.

  3. Develop a Customer Acquisition Plan:

    • Create a professional website.

    • Build a network of potential clients.

  4. Start your operations

Final Thoughts

Becoming a freelancer in Romania offers flexibility, independence, and an opportunity to pursue work you love. Although the registration and tax processes can be complex, the returns are higher. Follow this guide to turn your freelance dream into a thriving business in Romania!


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