Working as a freelancer in Romania can be incredibly rewarding. Whether you’re an EU citizen drawn by Romania’s low cost of living and flat 10% income tax, or a non-EU digital nomad eyeing the new visa, this guide has you covered. We’ll walk you through everything from PFA registration (becoming an Authorized Natural Person) to Romanian freelancer taxes and even Romania’s Digital Nomad Visa. By the end, you’ll know how to set up shop as a solo professional in Romania and keep things compliant with the latest 2025 rules. Let’s dive in!
Romania has quickly become a hotspot for freelancers and remote workers in Europe. Here are a few reasons why freelancing in Romania is so attractive in 2025:
In short, Romania offers a mix of economic advantages, community, and lifestyle perks that make it an excellent base for your freelance career in 2025.
Before we get into the nuts and bolts of registration and taxes, let’s clarify who can freelance in Romania and under what conditions:
Good to know: If you spend more than 183 days in Romania in a year or establish a home here, you could trigger tax residency. But the digital nomad visa alone does not automatically make you a tax resident of Romania. We’ll touch on the tax implications later, but rest assured Romania generally won’t tax your non-Romanian income if you’re here on this visa and not otherwise a resident.
Now that you know you can freelance in Romania, let’s look at how to do it—starting with registering your freelance business.
The most common way to legally work as a freelancer in Romania is by registering as a PFA (Persoană Fizică Autorizată), which translates to Authorized Natural Person. A PFA is essentially a sole trader or self-employed status – it allows you to invoice clients, earn income, and pay taxes in Romania under your own name. Here’s what you need to know about PFA registration:
Both Romanian nationals and foreigners can set up a PFA. This includes EU citizens (who, as mentioned, don’t need any permit) and even non-EU folks if they have a legal right to reside in Romania (for example, holding the digital nomad visa or another residence permit). You must be at least 18 years old to register a PFA, and you’ll need a clean record (no serious financial crime convictions). You also should have qualifications or experience in the field you want to freelance in – sometimes you’ll be asked to prove this with diplomas, certificates, or references when registering. For instance, if you want to register as a freelance graphic designer, having a design certificate or portfolio might be needed to demonstrate your capability.
Registration process: PFAs are registered through the Trade Register Office (ONRC) in Romania. The process is quite straightforward and involves a few key steps:
What about VAT? Not all freelancers need to register for VAT. Romania has a VAT registration threshold of RON 300,000 in annual turnover (approximately €60,000). If your freelance business earnings stay below this in a calendar year, you can choose to remain non-VAT (which means you won’t charge VAT on your invoices, and you can’t reclaim VAT on purchases either). If you exceed RON 300,000 in revenue or you want to voluntarily apply VAT, you’ll need to register for a VAT number with ANAF. Many new freelancers start without VAT to keep things simple, and register for VAT later if their business grows past the threshold or if being VAT-registered is beneficial for working with certain clients. We’ll talk a bit more about VAT in a dedicated section below.
PFA vs SRL: You might have heard of SRL (Societate cu Răspundere Limitată), which is a limited liability company, another common business form in Romania. Some freelancers debate whether to start as a PFA or an SRL. In general, a PFA is quicker and easier to set up (less paperwork and no minimum capital requirement), and for moderately earning solo entrepreneurs it comes with simpler compliance. An SRL can make sense if you plan to scale up, hire more people, or if you want the liability protection of a company. Many people start as a PFA and only consider switching to an SRL if their business significantly expands or if tax conditions change.
Tip: If bureaucracy isn’t your cup of tea, consider using a service like Xolo (we’ll plug more on this later!) to handle the registration for you. Xolo can guide you through setting up as a freelancer and even offer an umbrella solution to invoice clients without having to immediately establish your own company.
Now that your PFA is (hypothetically) set up, let’s tackle the all-important topic of taxes.
One of the biggest questions when starting out is: How will my freelance income be taxed in Romania, and what do I owe in social contributions? Don’t worry – it’s relatively straightforward and quite favorable, especially compared to many other EU countries. Here’s the breakdown for Romanian freelancer taxes in 2025:
Romania uses a flat tax system for personal income. As a freelancer (PFA), your business income is considered self-employment income and is taxed at a flat 10% rate on the net profit (after expenses). This flat tax covers income from independent activities like production, services, and liberal professions. It’s simple: calculate your taxable profit, apply 10%, and that’s your income tax. No progressive brackets, no higher rates – 10% is it. You will report and pay this tax annually through the single tax return (Declarația Unică) which is filed by May 25 of the following year (e.g. by May 25, 2026 for your 2025 income).
In addition to income tax, freelancers in Romania may owe two types of social contributions:
Pension Contribution (CAS): This is the contribution to the public pension system (social security). The rate is 25%. However, not everyone has to pay the full 25% – it depends on your income level. Specifically, you are required to pay CAS only if your annual net income from freelance activities exceeds a certain threshold. That threshold is set at 12 times the gross minimum wage. As of early 2025, the gross minimum salary in Romania is RON 4,050 per month. This means:
Health Insurance Contribution (CASS): This is the contribution to the national health insurance system. The rate is 10%. Similar to CAS, there’s a threshold here set at 6 times the gross minimum wage. Using the RON 4,050 baseline, that threshold is RON 24,300 per year (4,050 × 6). Here’s how it works:
To summarize the social contributions in plain language: For 2025, once you earn above roughly RON 25k net, you’ll owe 10% for health insurance. And once you earn above roughly RON 50k net, you’ll owe 25% for pension. These contributions are in addition to the 10% income tax, but they only kick in at those income levels. If you earn below those thresholds, health contributions still apply (due to new rules), but pension is optional.
Note: The actual thresholds will adjust if the minimum wage changes. Always check the latest threshold based on the current minimum wage of the tax year you’re in. The concept remains the same.
Tax Filing and Payment: Romanian freelancers report their income tax and contributions on a single annual return (Declarația Unică). You usually file online by May 25 of the next year. In that return, you declare your previous year’s income and calculate the tax and contributions due. Payment is due by the same date (May 25). You can pay online through the government platform or via bank transfer. It’s pretty convenient as you handle everything in one go annually. For first-year freelancers, you may also need to estimate income for the year when you register and possibly pay advance installments, but the rules on that have been simplified in recent years.
Deductions and expenses: If you choose the standard taxation (real income system), you can deduct legitimate business expenses from your gross income to arrive at your taxable profit. Keep receipts and records for things like: office supplies, equipment, work-related travel, professional subscriptions, a portion of utilities if you work from home, etc. Romania allows a range of deductions (with some limits on certain items like cars or per diem rates). These can reduce your taxable base, meaning you’d pay less 10% tax if you have business costs. If bookkeeping isn’t your strength, it might be worth consulting an accountant or using a bookkeeping app to track everything.
Next, we’ll discuss an alternative way PFAs can be taxed – the fixed income norm system – which could simplify things further if you qualify.
Romanian PFAs have two possible taxation models for their income tax: the real income system or the income norm (fixed) system. Understanding the difference will help you choose the most advantageous option for your freelance business.
How to choose? If you’re eligible for both, compare your expected net income to the fixed norm for your activity:
It’s not a permanent choice either – you can switch if conditions change (typically at the start of a year).
Both systems do not affect your obligation for VAT, CAS, or CASS. Those are determined by actual income and the thresholds we discussed earlier, regardless of how you pay income tax. For example, even if you pay a fixed tax on a norm, if your actual net income exceeds the thresholds, you’ll still owe pension and health contributions based on actual income levels.
We touched on VAT registration earlier, but let’s expand a bit on VAT for Romanian freelancers and when it matters:
VAT Registration Threshold: To reiterate, RON 300,000 (approx €60k) in annual turnover is the magic number. Stay below it and you can remain unregistered for VAT; go above and you must register. This threshold applies to businesses established in Romania (including PFAs). It resets each calendar year. If you start mid-year, you still get the full RON 300k threshold for that year. Once you exceed the threshold at any point, you should apply for VAT within 10 days of the month following the overrun. If you know you’ll exceed it, apply in advance to avoid issues.
Voluntary VAT Registration: You might choose to register for VAT even before hitting RON 300k. Why? Perhaps your clients are other businesses that prefer you to have a VAT number, or you have significant business expenses on which you could reclaim VAT. However, being VAT-registered means more accounting work: you’ll need to charge 19% VAT on your services (the standard Romanian VAT rate) for domestic clients, file periodic VAT returns, and comply with EU VAT rules for any cross-border services. Many freelancers postpone this until necessary, to keep things simple.
VAT Rates: The standard VAT rate in Romania is 19%. There are reduced rates (9% for things like books or healthcare, 5% for certain tourism services, etc.), but as a freelance service provider you’ll almost always deal with the 19% rate or possibly 0% (for exporting services outside the EU). If you work with EU clients, there are EU VAT OSS rules and reverse charge mechanisms to consider, but detailing those goes beyond a beginner’s guide. Just know that being non-VAT (called “VAT exempt under threshold”) can simplify invoicing for local clients (no VAT added) until you grow larger.
Invoicing without VAT: If you’re not VAT-registered, your invoices should state “Not registered for VAT – below threshold” (in Romanian one usually mentions “neînregistrat în scopuri de TVA”) to inform clients. They won’t be able to reclaim VAT on your invoices since none is charged.
For most starting freelancers in Romania, not registering for VAT is perfectly fine and common. As your business thrives and approaches that 300k RON/year mark, you can revisit the decision. And if dealing with VAT sounds daunting, remember that professional services (like Xolo or accountants) can handle VAT filings for you.
A special highlight for non-EU freelancers: Romania’s Digital Nomad Visa. Launched in late 2022, this visa program is in full swing by 2025, making Romania one of the welcoming destinations for remote workers. Here’s what you should know:
If you meet the criteria, the digital nomad visa is a fantastic option to legally base yourself in Romania. If not, you might still come on a tourist visa (for shorter stays) or, if you have a European passport, you don’t need to worry about it at all. For those who want to both freelance and become a Romanian tax resident/business owner, the PFA route (with possibly an existing long-term visa or permit) would be the way – which is more relevant for someone who plans to integrate more deeply into Romania’s economy.
👉 Once you’re set up as a freelancer, you might also wonder which tools to use — check out our honest comparison articles comparing Xolo to local service providers Keez, SOLO and FAFactura.ro here below:
Embarking on a freelance career in Romania in 2025 is an exciting prospect. You have the freedom to be your own boss in a country that welcomes entrepreneurs, with low taxes and now even a special visa for remote workers. By understanding the basics – PFA registration, choosing the right tax system (real vs norm), staying on top of Romanian freelancer taxes, and leveraging opportunities like the Romania digital nomad visa – you’ll be well on your way to success.
Setting up and managing a solo business can feel daunting, but you don’t have to do it alone. Xolo is here to support your journey. With Xolo Go and Xolo Leap, you have two robust platforms designed for freelancers and independent professionals just like you:
Ready to make your Romanian freelancing dream a reality? Don’t let bureaucracy hold you back. Check out Xolo Go and Xolo Leap to see how they can simplify your life as a Romania-based freelancer. Whether you’re an EU citizen already here or a digital nomad planning your move, Xolo’s got your back with the easiest way to start and grow your freelance business in Romania. Here’s to your success in the land of opportunity – noroc! (cheers!)
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