Romania – Self-Employment

How does self-employment work for expats in Romania?

As a general rule, foreign nationals are entitled to pursue self-employed status in Romania. The legal framework distinguishes clearly between different forms of independent work, and selecting the right category from the very beginning will determine your tax obligations, administrative workload, and exposure to personal liability throughout your time operating in the country.

Independent work can be conducted either through an Authorised Physical Person structure (PFA — Persoană Fizică Autorizată) or via a copyright contract where the work is creative in nature. The PFA is by far the most widely used route for expats seeking to freelance or consult independently, and it is broadly comparable to a sole trader in Ireland, a micro-entrepreneur in France, or an Einzelunternehmer in Germany.

Citizens of EU, EEA, and Swiss member states already hold the right to work in Romania without requiring a special visa to freelance or establish a business. Their primary task is to register as a freelancer — typically as a PFA — with the relevant Romanian authorities. They should also obtain an EU citizen residence certificate if their stay exceeds three months, though this is generally treated as a routine formality.

Nationals from outside the EU, EEA, and Switzerland must hold a valid work permit to carry out legal work in Romania. For those wishing to be self-employed, this typically means securing the appropriate long-stay visa status — such as the digital nomad visa — before any business entity can be registered. You must be at least 18 years of age, possess full legal capacity, and hold either Romanian citizenship or a valid right of residence. EU and EEA citizens generally face fewer administrative hurdles; non-EU nationals may be required to furnish additional legal documentation.

A residential address or legally recognised address within Romania is a prerequisite for PFA registration. For those arriving from outside the EU, this means resolving your immigration status before attempting to register any business — an essential sequence that should not be reversed.

What are the different self-employment and business structures available in Romania?

The two structures most commonly used in Romania are the limited liability company (SRL) and the sole proprietorship (PFA). Each carries different consequences for personal liability, the taxation system that applies, and the volume of ongoing administration required. Deciding between them is among the most consequential early choices any aspiring entrepreneur will make.

PFA (Persoană Fizică Autorizată) — Sole Proprietorship

A PFA is Romania’s version of a sole proprietorship — a lean, flexible structure tailored to individuals who want to work independently. As a PFA holder, you retain full autonomy over your professional activities, but no legal separation exists between you personally and your business. This means personal liability extends to any debts, taxes, or legal disputes arising from your freelance work. The structure is particularly well suited to freelancers, consultants, creatives, and small-scale service providers who value simplicity over liability protection.

SRL (Societate cu Răspundere Limitată) — Limited Liability Company

Romania’s Companies Law (Law no. 31/1990) provides for several corporate forms, but the SRL is the overwhelming preference among both domestic and foreign entrepreneurs. Shareholders bear liability only up to the value of their capital contribution and are shielded from personal exposure to company debts. An SRL can be incorporated with a minimum share capital of 500 RON and may have up to 50 shareholders. The company can be run by one or more administrators, who are not required to be Romanian residents.

SA (Societate pe Acțiuni) — Joint Stock Company

The SA structure is generally reserved for larger enterprises and organisations with ambitions to list publicly. A minimum share capital of 90,000 RON is required. Individual expats launching small or medium-sized ventures rarely opt for this form, though it may become relevant for those scaling a significant operation or attracting outside investment.

Other structures

Romania also recognises general partnerships, known as SNC, which can be formed by as few as two partners. A limited partnership structure is referred to as an SCS, requiring at least one general partner and one limited partner. The general partner bears unlimited liability for company operations and debts, while the limited partner’s exposure is capped at the amount invested. No minimum share capital is required, and these entities are subject to a 16% corporate income tax. Neither form sees frequent use among foreign founders, largely due to the liability risks involved.

For most expats, the practical decision comes down to a PFA for lower-volume freelance or consulting income, and an SRL once revenue grows or the business model demands a clearer separation between personal and commercial liability. A common pattern is to begin with a PFA when income is modest and transition to an SRL as earnings increase.

How do you register as self-employed in Romania?

Registering as self-employed in Romania involves dealing with the National Trade Register Office (ONRC) and obtaining a fiscal identification number. The process carries a moderate degree of bureaucracy but is entirely manageable, especially if you engage a local lawyer or accountant to guide you through it. Once all the required documents are correctly prepared and submitted, registration is typically completed within approximately three working days. Always verify current fees and processing timelines directly with the ONRC, as these may be revised.

1. Confirm your residency and immigration status. A residential or legally recognised address in Romania is a prerequisite for PFA registration. EU and EEA nationals should formally register their residence; non-EU nationals must hold a valid visa or residence permit before proceeding with registration.
2. Choose your CAEN activity code. Romania uses a national system of economic activity classifications known as CAEN codes. You will need to identify the code or codes that most accurately reflect the nature of your work. Certain activities require evidence of professional qualifications or adherence to regulations governing licensed professions.
3. Reserve your business name. Your trading name must incorporate your full legal name followed by the designation “PFA” (or II/IF where those forms are used). Reserve the name through the ONRC — either online or in person — to confirm it has not already been registered by another party.
4. Prepare your documents. For PFA registration you will need to submit a completed registration application, Annex 1 for tax registration, proof of a professional address or place of work, your identity card or passport, and a self-declaration confirming that you satisfy all legal conditions to operate as a PFA. Evidence of professional competence in the relevant fields is also required; where applicable, this documentation should be recognised by the Romanian Ministry of Education.
5. Submit your application to the ONRC. Lodge your application with the Trade Register Office for formal PFA registration. Online submission via the ONRC portal is frequently available. The district trade register where your business address is located handles the case. Registration fees are charged by the ONRC, with the exact amount depending on your district and whether you submit online or in person. Consult the ONRC website for the current fee schedule.
6. Register for tax with ANAF. Enrol for income tax, pension contributions (CAS), and health insurance contributions (CASS) with the National Agency for Fiscal Administration (ANAF). This can be completed either online through the ANAF portal or in person at a local ANAF office.
7. Assess VAT registration requirements. Should your annual turnover surpass the applicable VAT registration threshold, VAT registration becomes compulsory. As of September 2025, this threshold was raised from RON 300,000 to RON 395,000. If you provide business-to-business services to clients located in other EU member states, VAT registration is generally required even if your domestic turnover remains below that threshold.
8. Open a dedicated bank account. While the law does not universally mandate a separate business account for PFAs in all circumstances, maintaining a distinct account for business transactions is strongly advisable for clear accounting records, tax compliance, and the practical separation of personal and professional finances.

How do you set up a company in Romania as an expat?

Romania’s appeal to foreign investors rests on its combination of fiscal incentives, strategic location at the crossroads of Central and Eastern Europe, and a relatively accessible incorporation process. For both EU and non-EU investors, it ranks among the more straightforward EU jurisdictions in which to establish a company. Romania permits 100% foreign ownership across all business types. Shareholders and directors are not required to be Romanian residents, and foreign nationals may serve in management roles.

A foreign investor can hold the entire share capital of a Romanian SRL without any obligation to involve a local shareholder or appoint a Romanian director, unless the business operates in a regulated sector such as financial services. This makes the Romanian company structure well suited to holding arrangements, technology startups, and international service businesses that wish to retain full foreign control.

1. Choose your legal structure. Non-residents may select from several company forms, with the most widely adopted being the Limited Liability Company (SRL), the Joint Stock Company (SA), or a branch or subsidiary of a foreign entity. The SRL is the preferred option for the vast majority of new entrants due to its streamlined incorporation process and the limited liability protection it affords shareholders.
2. Reserve your company name. Begin by reserving a unique company name with the Trade Registry. The name must be distinguishable from those of already-registered businesses. The reservation remains valid for one month.
3. Prepare the required documents. The essential documentation includes the Articles of Incorporation, evidence of the registered office address (whether through a title deed or a lease agreement), identification documents for all shareholders and directors (passport), sworn affidavit statements, specimen signatures, and the name reservation certificate. Documents originating outside Romania must be apostilled and, where necessary, translated into Romanian.
4. Deposit your share capital. The minimum share capital required to incorporate an SRL is 500 RON (as of 2025). Although this nominal figure makes entry very accessible, committing a higher initial capital is generally advisable in practice to meet early operating costs.
5. Submit documents to the Trade Register. Once all documentation has been lodged with the Trade Register Office and the institution has reviewed the applicant’s file, the company is assigned a unique registration code (CUI). A company acquires legal personality in Romania at the moment of its registration with the Trade Register. The process typically takes between five and ten working days from the point at which all complete documents are submitted, assuming no delays arise on the part of the Registry.
6. Register for corporate tax and VAT with ANAF. Your company must be enrolled with the National Agency for Fiscal Administration (ANAF) for tax purposes. Registration can be completed online or in person and requires the provision of company and personal details, including the company name, the chosen legal structure, and a projected estimate of annual income.
7. Open a Romanian business bank account. A Romanian bank account is necessary for receiving payments and settling tax liabilities. You can open an account online or by visiting a branch in person; you will be required to present identification documents and proof of address.
8. Obtain any sector-specific licences. Depending on the nature of your business activities, additional permits or licences from the relevant government authorities may be required — these could include a commercial registration certificate, an industrial registration certificate, or a licence issued by the relevant municipality.

Always confirm current fees, capital requirements, and processing timescales directly with the ONRC, as these details are subject to change.

Can you work as a digital nomad in Romania?

The Romanian government formally launched its Digital Nomad Visa in 2022, creating a long-stay visa category that permits remote workers and entrepreneurs from outside the EU to reside legally in Romania while continuing to work for foreign employers or businesses they own abroad. This positions Romania among a growing cohort of European countries — alongside Portugal, Croatia, and Estonia — that have established a dedicated legal route for location-independent professionals.

The digital nomad visa is directed primarily at non-EU/EEA/Swiss nationals, since citizens of EU, EEA, and Swiss member states already possess the right to live and work in Romania without requiring a specialist visa. If you hold EU or EEA citizenship, the appropriate route is to obtain a registration certificate in Romania, which permits residence for up to five years.

Key eligibility requirements

The visa is available to non-EU/EEA nationals who can demonstrate that they work remotely for a company incorporated outside Romania, or who own a company incorporated outside Romania that has been in continuous operation for a minimum of three years. Self-employed status is also an acceptable basis for application. Applicants must be able to fulfil all professional duties entirely by remote means.

Income threshold

Applicants must demonstrate a minimum monthly income equivalent to at least three times Romania’s average gross monthly salary for the six months preceding the application and throughout the visa’s duration. As of 2025, this translates to a minimum of approximately €3,700 per month (around 18,000 RON). The average gross salary figure is revised annually, so it is essential to check the current threshold with the Romanian Ministry of Foreign Affairs (MAE) before submitting your application.

Duration and renewal

The digital nomad visa initially grants a 90-day entry, which may be converted into a one-year residence permit, allowing a total stay of 12 months without the need for a local employer. If you wish to remain beyond this period, a renewal for a further twelve months is available. Successful renewal requires presenting verifiable evidence of income for the preceding six months and continued fulfilment of all eligibility conditions.

Tax implications

Foreign nationals who come to Romania to work remotely for overseas companies using information and communication technologies are exempt from the obligation to pay income tax and social insurance contributions on wages and income earned abroad. This tax advantage applies only when the digital nomad does not spend more than 183 days in Romania during any consecutive 12-month period ending within a given calendar year.

Documents required

• Employment contract or proof of remote company ownership (operating for at least three years)
• Bank statements evidencing the required income level for the preceding six months
• A letter of intent setting out the purpose of your stay in Romania
• Valid health insurance providing a minimum coverage of €30,000
• A clean criminal record certificate (apostilled and translated into Romanian)
• Proof of accommodation in Romania (rental agreement or property ownership documents)

Application fees amount to approximately €120, with a further 259 lei (approximately €53) payable for the residence permit itself. Confirm current fees with the MAE, as these figures may be updated periodically.

What taxes and social contributions apply to self-employed expats and business owners in Romania?

Romania operates one of the lowest personal income tax rates anywhere in Europe — a flat 10% applied uniformly to both employment income and freelance earnings. This flat-rate approach is considerably simpler than the progressive band systems prevalent elsewhere — unlike, for instance, the tiered rates used in Germany or the Netherlands, every Romanian taxpayer contributes the same proportion of their income regardless of how much they earn.

Income tax for sole proprietors (PFA)

As of 2025, sole proprietors in Romania may be taxed under one of two systems: the actual (real) system or the income norm system. Under the real system, tax is assessed on net income calculated by deducting allowable business expenses from gross income. Sole proprietors whose gross income in 2024 exceeded RON 100,000 are required to use this system in 2025. The applicable rate in both cases is the flat 10%.

Choosing between the two systems involves a trade-off: under the real system, you are taxed at 10% on your actual profit after deducting legitimate business costs such as rent, equipment, or travel expenses, but this requires meticulous record-keeping throughout the year. Under the income norm system, tax is calculated at 10% on a standardised “normative income” figure determined by the tax authority according to your profession and geographic region. This reduces the administrative burden considerably, but if your actual earnings significantly exceed the norm, your effective tax bill may be higher than it would have been under the real system.

Social contributions for sole proprietors

Where annual net income exceeds 12 times the national minimum gross salary (RON 48,600 for 2025), the proprietor is required to pay pension contributions (CAS) at a rate of 25% and health insurance contributions (CASS) at 10% on the chosen assessment base. For income below this threshold, these contributions are voluntary. Unlike employed workers, whose contributions are withheld automatically by their employer each pay period, self-employed individuals in Romania must personally calculate and remit these contributions as part of the annual tax return process.

All tax obligations — including income tax and any applicable social contributions — must be declared and settled through the annual tax return by 25 May of the year following the income year. For income earned in 2025, the filing deadline is therefore 25 May 2026.

Corporate tax for SRL companies

The micro-company tax regime is widely regarded as Romania’s most significant fiscal advantage for smaller businesses. Compared to the standard 16% corporate income tax, the micro-regime is far more attractive for startups and entrepreneurs operating through their own SRL. Once a company’s turnover surpasses €100,000, or if the standard regime is voluntarily elected, the 16% corporate income tax applies to net profit. Dividends distributed to shareholders carry an 8% withholding tax (as of 2025).

VAT

From September 2025, the VAT registration threshold increased from RON 300,000 to RON 395,000. The standard VAT rate stands at 21% (as of 1 August 2025), with a reduced rate of 11% applicable to certain categories of goods and services. Businesses providing B2B services to clients in other EU member states are generally required to register for VAT even when domestic turnover remains below the domestic threshold.

Tax treaties

Romania has concluded double taxation treaties with more than 80 countries. If you receive income from clients or an employer in your home country, identifying whether a relevant treaty applies to your situation is strongly recommended. Consult the ANAF website for the most up-to-date rates and thresholds, and seek personalised tax advice from a qualified professional.

Are there any incentives, grants, or programmes to encourage expat entrepreneurs in Romania?

Companies registered in Romania under foreign ownership are eligible to apply for EU funding, government grants, and a range of incentive programmes, provided they satisfy the eligibility conditions attached to each scheme. Such programmes are frequently oriented towards innovation, research and development, technology adoption, and rural economic development. Holding a Romanian-registered entity gives you a direct route into these opportunities.

Micro-enterprise tax regime

Romania’s micro-company system stands out as one of the most tax-efficient regimes available anywhere in the EU, particularly for solo founders and digital entrepreneurs operating through their own SRL. The 1% turnover tax available to qualifying companies with revenue below €100,000 and at least one employee represents a compelling advantage relative to corporate tax rates across the rest of the EU. Eligibility conditions apply and warrant verification with a local accountant, as the governing rules have been amended on several occasions in recent years.

Tax exemptions for IT workers

Romania provides a well-established income tax exemption for employees and founders engaged in software development roles, subject to conditions stipulated by the Ministry of Finance. While the exemption was primarily conceived with salaried professionals in mind, it has had the broader effect of making Romania an attractive location for technology businesses. Current eligibility criteria should be confirmed with ANAF directly, as the scope of this exemption has been subject to legislative revision.

SRL-D for young entrepreneurs

Romanian legislation provides an alternative incorporation option known as the SRL-D, designed to assist young entrepreneurs in setting up their first business. This structure is specifically intended for individuals who have never previously held a stake or ownership interest in any company, whether in Romania or elsewhere in the EU. It offers a simplified establishment process and certain administrative advantages for first-time business founders.

EU structural funds

As a full EU member state, Romania receives substantial allocations from EU structural and cohesion funds under the 2021–2027 programming period. Eligible businesses — including those under entirely foreign ownership — can submit applications for grants administered through programmes overseen by Romania’s Ministry of European Investments and Projects. Available schemes vary by sector and region; visit the official Ministry of European Funds (MFE) website to review currently open calls.

Digital nomad visa as an indirect incentive

One of the most tangible advantages of the Romania Digital Nomad Visa is that it enables you to live in Romania while continuing to work remotely for a foreign employer or your own overseas business, frequently without incurring Romanian income tax obligations, provided you do not become a Romanian tax resident. This tax-favourable position, combined with Romania’s comparatively low cost of living, effectively functions as a financial incentive for high-earning remote workers considering a European base.

What are the practical challenges of being self-employed or running a business in Romania?

Becoming self-employed in Romania involves a moderate level of bureaucracy: you will encounter multiple registration steps, annual filing obligations, and choices between different tax and social security systems. The rules can feel layered and at times opaque. Expats considering this path should approach it with realistic expectations about the administrative effort involved.

Language barriers

This challenge is particularly acute for PFAs established by expats, given that all official paperwork is in Romanian. Having a lawyer assist you is strongly advisable — errors in document preparation can prove both costly and time-consuming to rectify after submission. After registration, ongoing filings with ANAF, the ONRC, and other bodies continue to be conducted in Romanian, making access to dependable translation support or a bilingual accountant an ongoing practical necessity.

The role of local accountants

Because the registration process can be fairly bureaucratic, many people choose to navigate it with the assistance of a law firm or accountant. A licensed Romanian accountant (contabil autorizat) is not a legal requirement for a PFA operating under the income norm system, but is strongly advisable for anyone on the real taxation system, running an SRL, or managing VAT obligations. Accountancy fees in Romania are generally modest by Western European standards, making this professional support an affordable and worthwhile precaution.

Banking access

Opening a Romanian business bank account as a foreign national may require in-person visits, enhanced identity verification procedures, and — with some banks — a Romanian personal identification number (CNP). Some expats find digital banking platforms a more accessible starting point, though it is worth researching which Romanian banks offer the most straightforward account-opening process for non-residents before committing to a provider.

Invoicing and contracts

All invoices must comply with Romanian legal requirements, including your full name, tax identification number, and correct legal designation. Romanian invoicing rules specify mandatory fields and prescribed formats. When entering into agreements with clients in Romania, written contracts in Romanian are standard practice, and verbal arrangements carry limited legal enforceability. For those working with international clients, invoices may generally be issued in a foreign currency, although tax declarations must be converted into Romanian lei for reporting purposes.

Keeping up with legislative changes

Among the principal ongoing challenges are managing social security contribution requirements tied to income thresholds, monitoring shifts in tax legislation, and ensuring that your registered CAEN code continues to accurately reflect your actual business activities. Romania’s tax framework — covering micro-enterprise rates, VAT thresholds, and social contribution rules in particular — has undergone considerable revision in recent years, making an annual review with your accountant a prudent routine.

Bureaucratic processing times

While ONRC registration for a PFA typically takes around three working days and SRL incorporation around five to ten working days, delays can arise when documentation is incomplete or requires correction. Interactions with state institutions can still be slower and more paper-intensive than equivalent processes in other popular European destinations for digital nomads, such as Estonia or Portugal. Building additional time into your plans is a sensible precaution.

Frequently asked questions

Can I be both employed and self-employed at the same time in Romania?

Yes. It is entirely possible to hold an employment contract with a Romanian employer while simultaneously operating a PFA, as long as your employment contract does not contain a clause prohibiting secondary commercial activity. Your social contribution obligations may overlap in certain circumstances, and you should check with an accountant whether contributions already being paid through your salaried employment satisfy your PFA obligations. If you are already paying health insurance contributions (CASS) through your employment income, for instance, you may not be required to make a separate CASS payment through your PFA.

Can I invoice foreign clients from a Romanian PFA or SRL?

Yes. Both a PFA and an SRL are fully entitled to issue invoices to clients based outside Romania. Freelance and self-employed work carries no geographic restriction, so you are free to take on clients from any country. If your clients are VAT-registered businesses elsewhere in the EU, you will generally need to hold a Romanian VAT registration to issue legally compliant intra-community invoices, even where your domestic turnover remains below the domestic VAT threshold. Invoices addressed to clients outside the EU may not attract VAT, but professional advice is recommended to confirm the correct treatment in each case.

What happens to my PFA or SRL if my visa or residence status changes?

Your registered business entity continues to exist as a legal entity regardless of any change to your personal residency situation, but you are only permitted to conduct active business operations in Romania while you hold a valid legal right to reside and work in the country. If your visa lapses or you depart Romania on a permanent basis, you should formally deregister or place your business in suspension with the ONRC and discharge any outstanding tax obligations with ANAF. Simply leaving the country without deregistering does not extinguish your ongoing tax and reporting obligations.

Do I need a physical office address to register a PFA or SRL in Romania?

To register a PFA in Romania, you must provide evidence of ownership or a lease agreement for a professional headquarters. For an SRL, a registered office address within Romania is a legal requirement. In practice, virtual office services are widely available throughout the country and are generally accepted by the Trade Register, meaning this requirement can be met readily without committing to a physical lease. Always verify that your virtual office provider will accept and forward official correspondence, and ensure the arrangement is properly documented.

Is a notary required to register a PFA or SRL in Romania?

For a PFA, notarisation is not typically required provided you personally sign and submit your own statutory declaration confirming that you meet the applicable conditions. For an SRL, the Articles of Association and certain affidavits from shareholders and directors may require notarisation or formal authentication, particularly when the relevant individuals are foreign nationals and their documents originate from outside Romania. Documents issued abroad must be apostilled and translated into Romanian where required. A Romanian lawyer can prepare and lodge these documents on your behalf, in many cases handling the entire process online.

What is the difference between CAS and CASS, and do I have to pay both?

CAS is the pension and social insurance contribution, levied at a rate of 25%, while CASS is the health insurance contribution, applied at 10% — both calculated on taxable income above the relevant thresholds. As of 2025, both contributions become mandatory once annual net income exceeds 12 times the national minimum gross salary (RON 48,600 for 2025). For incomes below this threshold, payment of these contributions is optional rather than compulsory. Always verify the current thresholds with ANAF, as the minimum salary figure is updated periodically.

Can a non-resident own 100% of a Romanian SRL without living in Romania?

Yes. Romania permits 100% foreign ownership across all business types, and there is no requirement for shareholders or directors to be Romanian residents. Foreign nationals may also serve as company administrators and managers. Each company must appoint at least one administrator to oversee business operations, but residency in Romania is not a condition of that appointment. If, however, you intend to be physically present in Romania on a regular basis to actively manage the business, you will need to hold the appropriate visa or residency status.

How do I find a reliable local accountant or lawyer for my Romanian business?

Romania has a mature profession of licensed accountants (contabili autorizați) and tax advisers. The professional body CECCAR (the Body of Expert Accountants and Licensed Accountants of Romania) maintains publicly accessible registers of qualified practitioners. Many Romanian law and accountancy firms work bilingually or provide services specifically designed for expat business owners. Seeking personal recommendations within the expat communities of Bucharest, Cluj-Napoca, or Timișoara is often the most practical starting point, and a growing number of professionals now offer initial consultations remotely.