Romania Tax Residency Guide 2026

Standard Residency Test — 183+ Days

Under Romania's Fiscal Code, an individual is a tax resident if physically present in Romania for 183 days or more in any 12 consecutive months ending in the calendar year. This follows the OECD standard. Days of arrival and departure both count as days of presence. Short trips abroad do not break the continuity of presence. The 183-day test applies to all individuals, regardless of nationality. Romanian citizens living abroad who spend less than 183 days in Romania are generally non-residents for tax purposes. The test is particularly relevant for digital nomads, cross-border workers, and retirees spending time in Romania.

Center of Vital Interests

Romania also uses the center of vital interests test as a secondary criterion. An individual is resident if their center of vital interests is in Romania, defined as where personal and economic interests are closer. Personal interests include family, social connections, and lifestyle. Economic interests include employment, business activities, and investment location. The test is holistic: no single factor is determinative. This test is particularly relevant for individuals who spend fewer than 183 days in Romania but maintain strong ties (e.g., family in Romania, business based in Romania, Romanian bank accounts and property). The center of vital interests test aligns with the DTA tiebreaker provisions.

No Citizenship-Based or Permanent Home Test

Following EU alignment and updates to the Fiscal Code, Romania no longer uses citizenship-based or permanent home tests for tax residency determination. Unlike some non-EU countries that tax based on citizenship (e.g., USA, Eritrea), Romania's tax residency is purely based on physical presence and economic/personal ties. This means: Romanian citizens living abroad are not Romanian tax residents (if they meet the 183-day test or have their center of vital interests abroad), and foreign nationals living in Romania may become tax residents regardless of their nationality. This EU-aligned approach provides clarity and avoids the complexities of citizenship-based taxation.

Non-Resident — Romania-Source Income Only

Non-residents are taxed only on Romania-source income, which includes: employment income for work performed in Romania (subject to the 183-day exemption under DTAs), income from immovable property located in Romania, business income from a Romanian permanent establishment, dividends, interest, and royalties from Romanian sources, capital gains from Romanian real estate companies, and pensions from Romanian sources. The standard IIT rate of 10% applies. Withholding tax is the primary collection mechanism for most passive income. Non-residents who earn only Romania-source passive income (e.g., rental income, dividends) are generally subject to final withholding tax and do not need to file an annual return.

No Exit Tax

Romania does not impose an exit tax on individuals ceasing tax residency. Unlike some countries (USA, Canada, Norway), Romania allows residents to leave without a deemed disposition of assets or a tax charge on unrealized capital gains. However, departing residents must file a final tax return covering the period of Romanian residency up to the date of departure, settling all outstanding tax liabilities. Romania's no-exit-tax policy makes it attractive for expatriates and international investors who may relocate to other countries.

DTA Tiebreaker

When an individual is dual-resident under domestic laws of Romania and another treaty country, the Double Taxation Agreement (DTA) tiebreaker rules determine the single country of residence. Romania's DTAs (90+) follow the OECD Model. The tiebreaker hierarchy: (1) Permanent Home available in only one country, (2) Center of Vital Interests (closer personal and economic relations), (3) Habitual Abode (where the individual spends most time), and (4) Nationality. If no tiebreaker resolves the dual residency, the competent authorities of both countries resolve the case by mutual agreement. Romania has been active in MAP cases and generally follows OECD guidance.

FAQs

Does holding Romanian citizenship make me a tax resident?

No. Romania does not have citizenship-based taxation. Romanian citizens living abroad who spend fewer than 183 days in Romania and have their center of vital interests outside Romania are non-residents for tax purposes.

How do I prove my non-resident status for Romanian tax purposes?

You can obtain a certificate of tax residency from your country of residence. For Romanian authorities, you may need to demonstrate your physical presence abroad through travel records, employment contracts, rental agreements, and other evidence. The DTA residency certificate process depends on the specific treaty.

What triggers a tax residency audit in Romania?

ANAF may audit tax residency when an individual spends significant time in Romania, maintains a home and family in Romania, or derives substantial income from Romanian sources while claiming non-resident status. Cross-border workers, retirees, and digital nomads should document their presence carefully.

Disclaimer

This guide provides general information about Romania tax residency rules for 2026. Rules are subject to change through legislation. Always consult with a qualified tax advisor for advice specific to your situation. InvestmentKit does not provide tax advice.