Moving from Romania Tax Guide 2026: ANAF Exit, 10% Flat Tax & CAS/CASS Social Insurance

KEY INSIGHT

Romania's income tax is a flat 10% (impozit pe venit) — one of the EU's lowest. Social contributions are substantial: CAS 25% (pension) and CASS 10% (health) are paid by employees on gross income. There is no formal exit tax on departing Romanian residents. The state pension (Pensie de Stat) cannot be withdrawn as a lump sum — contributions create a future pension right. ANAF deregistration is recommended before departure. RON (Romanian leu) is freely convertible and Wise is well-supported for RON transfers.

At a glance

Key Facts

Romanian Income Tax (Impozit pe Venit): 10% Flat Rate and Departure Rules

Romania's impozit pe venit (Codul Fiscal — Legea 227/2015, as amended) applies a flat 10% rate on: employment income (salarii), self-employment income (activități independente), rental income (chirii), investment income (dividends, interest, capital gains), pension income above RON 2,000/month. 10% flat rate: applies after deductions where applicable. Employee income: taxed at source via retinere la sursă — employer withholds and remits to ANAF monthly. Social contributions additional to 10% SZJA equivalent: CAS 25% (asigurări sociale — pension); CASS 10% (asigurări de sănătate — health insurance). Effective total deduction on employment income: approximately 37.5–41.5% depending on deductions, CAS/CASS caps. Minimum CASS: individuals with no income still owe minimum CASS of 10% × 12 minimum wages annually (RON 3,700/month minimum wage × 12 × 10% = RON 4,440 — verify current minimum wage). Tax residency: Romanian tax residency applies if: (1) domiciliu fiscal in Romania (permanent home); (2) present in Romania for 183+ days in any 12-month period; (3) principal economic interests in Romania. Loss of Romanian residency: establish permanent home abroad and notify ANAF. File Form 020 (Cerere de înregistrare/radiere a unui contribuabil persoană fizică nerezidentă) to update your ANAF tax domicile status. Final impozit pe venit return: file Declaratia Unică (Form 212) by May 25 of the year following departure. Non-residents: 10% flat withholding on Romanian-source income — dividends, rent, interest. Employment income from a Romanian employer: 10% SZJA + applicable social contributions.

CAS and CASS: Social Contributions and What Happens on Departure

Romania's social contributions system (administered by ANAF from 2018 — unified collection): CAS (Contribuția de Asigurări Sociale — pension): 25% of gross income for employees (fully borne by employee under Romania's 2018 reform). Ceiling: no annual cap (unlike some EU countries). CASS (Contribuția de Asigurări Sociale de Sănătate — health insurance): 10% of gross income for employees. The 2018 reform (Legea 79/2018): transferred the entire CAS burden from employer to employee — a controversial change that effectively increased the employee cost to 35% (CAS 25% + CASS 10%) with only the 10% income tax on top. On departure: CAS and CASS contributions cease upon the last day of Romanian employment or last self-employment activity declaration. CASS health coverage ends: CNAS (National Health Insurance House — cnas.ro) coverage terminates within 3 months of last CASS contribution (transitional 3-month grace period). Arrange private health insurance before or at departure. Romanian state pension (Pensie de Stat — administered by Casa Națională de Pensii Publice — cnpp.ro): contributions to the Romanian public pension system create a future pension right. Lump-sum withdrawal: NOT available in Romania — the state pension system does not permit withdrawal of accumulated CAS contributions. EU totalisation: EU Regulation 883/2004 applies — Romanian CAS contribution periods count toward EU destination country pension eligibility thresholds and vice versa. Contact CNPP (cnpp.ro) for your personal contribution record (Adeverință de stagiu de cotizare).

Romanian Real Estate: Non-Resident Ownership and Income Tax

Romania has been a growing real estate market with significant foreign investor interest. Non-resident property ownership is fully permitted (EU citizens may own agricultural land with some restrictions — verify current rules post-EU accession period). Capital gains on Romanian real estate: 10% flat impozit pe venit on gains. For residential property held by individuals: tax is withheld by the notary at transfer. Calculation: gain = sale price − inflation-adjusted purchase price − documented improvements. Transfer fee: 0.5% stamp duty (notarial fee) on the transaction value. Notary fees: approximately 0.5–1% of transaction value. Property tax (Impozit pe clădiri): annual tax on the assessed building value, paid to the local Direcție Fiscală. Rates: for residential buildings: 0.1–0.2% of assessed value; commercial: 0.2–1.3%. Land tax (Impozit pe teren): charged separately on land area. Rental income as non-resident: 10% flat CASS on rental income plus 10% impozit pe venit = effective 20% on net rental income. Non-residents may not pay CAS on passive rental income — verify with ANAF. Romanian property management: appoint a local administrator (administrator de bloc or a property management company) for ongoing tax obligations, maintenance, and rental management. ANAF: retain your Romanian CNP (Cod Numeric Personal) tax identification for ongoing property-related filings.

RON Currency and International Transfers

Romania's leu (RON — Leu românesc) is a freely convertible currency managed by BNR (Banca Națională a României — bnr.ro). Romania has not yet adopted the euro (targeted for eventual EUR entry — verify current NBR roadmap). No capital controls restrict international transfers of legally obtained RON or FX. BNR exchange rate: RON has been relatively stable at approximately 4.9–5.0 RON per EUR (verify current rate at bnr.ro). International transfers: Romanian banks (Banca Transilvania, BCR, ING Romania, BRD, Raiffeisen Romania) offer international wire transfers. SWIFT transfers: standard EUR/USD transfers — allow 1–3 business days. Documentation for large transfers: proof of origin of funds under Legea 656/2002 (AML legislation, as amended). Transfers above RON 10,000 cash: must be reported. Large wire transfers: may require additional bank documentation. ONPCSB (National Office for Prevention and Control of Money Laundering) reporting: financial institutions report large or unusual international transfers. Wise from Romania: Wise is well-supported for RON to EUR/GBP/USD transfers — highly competitive for regular amounts (rental income, dividend payments). For property sale proceeds: coordinate with your Romanian bank's foreign exchange desk — wire transfer of EUR amounts after notary-mandated RON to EUR conversion.

Introduction

Romania's 10% flat income tax, affordable cost of living, and EU membership have made Bucharest, Cluj-Napoca, and Timișoara attractive bases for tech workers, digital nomads, and foreign professionals. However, the 35% total employee social contribution burden (CAS + CASS) significantly reduces the headline attraction of the 10% income tax. When residents depart — commonly for Germany, UK, France, or the Netherlands — they face questions about ANAF procedures, RON savings transfers, and what happens to decades of Romanian pension contributions. Romania's EU membership ensures coordinated pension totalisation rights for EU destinations.

Section 01

Moving from Romania to Germany, UK, France, or the Netherlands

Germany: Romania-Germany DTA (2001) applies. Germany taxes residents at progressive 14–45%. The transition from 10% Romanian flat tax to German progressive rates is significant — particularly on investment income. EU totalisation: Romanian CAS years count toward Deutsche Rentenversicherung qualifying periods. Romanian rental income: taxable in Romania (source, 10%); credit in Germany under DTA. German church tax applies if you are a church member.

UK: Romania-UK DTA (1975, updated — verify post-Brexit status). UK taxes residents on worldwide income. Romanian-source dividends: 10% Romanian withholding; UK FTC available. HMRC split year treatment may apply in the year of UK arrival. UK National Insurance: Romanian contribution periods may count toward UK State Pension qualifying years under bilateral social security arrangement.

France: Romania-France DTA applies. France taxes residents at progressive 11–45% (IRPP) plus substantial social contributions (CSG/CRDS — up to 17.2%). High total effective rate vs Romania's 10% flat is a significant change.

Netherlands: Romania-Netherlands DTA. Box 3 (savings and investments) regime applies to investment income in the Netherlands — notional 6.17% return on assets taxed at 36% (effective approximately 2.2% on asset value). Romanian property held by Dutch tax residents: Dutch Box 3 may apply to the Romanian property's value.

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FAQ

Frequently Asked Questions

Does Romania have an exit tax when I leave permanently?

Romania does not impose a personal exit tax (impozit de ieșire) triggered by the act of departure for natural persons. There is no deemed disposition of assets or crystallisation of unrealised gains on departure. Business exit tax: Romania implemented ATAD 1 exit tax rules for companies and permanent establishments transferring assets or tax residence outside Romania — relevant if you operated a Romanian SRL (company). For individuals: the departure year is simply the final year of Romanian worldwide taxation. After loss of Romanian residency: only Romanian-source income is taxable at 10% non-resident rates via withholding.

My employer made CAS pension contributions in Romania for 5 years. Am I entitled to anything?

Yes — 5 years (60 months) of Romanian CAS contributions create a contribution record in the Romanian state pension system. You will not receive a lump-sum refund, but you have accrued Romanian pension rights. The Romanian pensie de stat becomes payable at retirement age (65 for both men and women by 2030 under the pension reform law — Legea 360/2023). The amount depends on your point score (punctaj) accumulated — each year of contributions at average salary = 1 point; higher salary = more points; lower salary = fewer points. At retirement, contact CNPP (cnpp.ro) with your contribution history (adeverință). EU totalisation: if you move to another EU country, your Romanian CAS periods are added to that country's contribution record. Romania can pay a proportional pension based on Romanian years — even if you qualify via totalisation primarily in Germany or France. Bilateral agreements with non-EU countries (UK, USA — verify): may also allow totalisation.

How do I deregister from ANAF and stop CASS health insurance payments?

ANAF deregistration process: (1) File Declarația Unică (Form 212) for your final year of Romanian income by May 25 of the following year. Include all worldwide income earned while Romanian tax resident. (2) Update your domiciliu fiscal: submit Form 020 to ANAF with your new foreign address — this changes your status to non-resident taxpayer. (3) If self-employed (PFA — Persoană Fizică Autorizată): formally cease PFA registration at the Trade Register (ONRC — onrc.ro). File CAS/CASS cessation declarations. (4) CASS health insurance (CNAS): your NCHIF coverage continues for 3 months after the last CASS contribution as a transitional protection. After 3 months: obtain private health insurance. (5) CNP (Cod Numeric Personal): retain this — needed for ongoing property filings and future pension claims. (6) e-Romania portal (anaf.ro/e-services): you can continue filing online from abroad using your Romanian digital certificate or through a Romanian tax representative (mandatar fiscal).

Is Romania's 10% tax rate genuinely as attractive as it sounds?

Romania's 10% income tax is real and applies to all personal income. However, total tax burden is much higher than 10% due to social contributions. For an employee earning the average Romanian salary: 10% income tax + 25% CAS + 10% CASS = 37.5–42% total deduction from gross income, depending on whether the minimum CASS floor applies. By comparison: at the same income level in the Netherlands, effective income tax may be 36.97%; in Germany, 14–25%. So the actual advantage is most pronounced for: (1) self-employed/freelancers who can structure income to minimise CAS (capped contribution bases apply for certain activity types); (2) investors with dividend/interest income — only 10% CASS (capped) + 10% income tax; (3) retirees with pension income up to RON 2,000/month — exempt from income tax entirely. For regular employment: the total burden is competitive with most of Western Europe but not dramatically lower. The real advantage is Romania's low cost of living combined with its EU member state benefits.

Disclaimer:This guide provides general tax information for educational purposes only. Romanian Codul Fiscal is amended annually by the Romanian budget laws. CAS/CASS rates and CNAS eligibility rules have changed significantly since 2018 and continue to be subject to reform. Nothing in this guide constitutes tax or legal advice. Consult a licensed Romanian expert contabil or consultant fiscal before departing Romania.

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