The Romanian tax system in 2024

💰 Did you hear that taxes in Romania will be different in the year 2024? Are you curious how much you will pay for your business in the year to come? This video will show you all you need to know on this topic!
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📌 In this video, our colleague Remus will explain all you need to know about the Romanian tax system in 2024, as well as various tips and tricks on this subject.
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❗ After we filmed our video, there were some new changes made to the Romanian legislation. So in 2024 you can no longer have more than 1 micro-enterprise in Romania (1% or 3% tax on revenue). You are considered to have a micro if you own more than 25% of the company shares.
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Did you enjoy our video? Don't forget to leave us a Like 👍, Subscribe to our channel ✅ and check out these other videos, which you might like:
➡️How to obtain Romanian residency for non-EU: tinyurl.com/3e...
➡️How to obtain Romanian permanent residency: tinyurl.com/j8...
➡️How to obtain Romanian citizenship: tinyurl.com/t9...
➡️5 Things to know before buying property in Romania: tinyurl.com/7m...
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[@houze.9490]

Great video, as always :) I can only recommend R&R for anyone looking to start a business in Romania, extremely friendly and have superior knowledge in everything they do. Also, the colleagues / partners of Remus are extremely friendly and professional. (Greetings from Aaron, The Netherlands)

[@RRPartnersBucharest]

Thank you so much, Aaron! Glad to help :)

[@eliahuweinstein]

The bottom line is that doing business in Romania is risky because of lack of legal stability & proximity to the Russia/Ukraine conflict.

[@RRPartnersBucharest]

Hello! To be honest, we do not see a problem with the proximity to Ukraine. Our country is part of EU and NATO, it is highly unlikely for anything to happen here. The change is tax legislation is another issue altogether.

[@viaanvasu5464]

Hi Bro, Is it good salary 6000 usd in Buchard, what about family expenses and what will be the net pay with that salary?

[@RRPartnersBucharest]

Hello, is it gross or net salary?

[@vulcaneir2758]

Hey man, I just wanted to ask whether an international student can work as a real estate agent in Romania, without Romanian citizenship? Also could u do a video on what r the jobs available for an international student once he lands in Romania?

[@RRPartnersBucharest]

Hello! If you are a student in Romania, you can work in any field, but only part time. This applies for work contracts. If you have a business yourself, work however you want :) As for jobs available for students, they can do pretty much anything, as long as somebody is willing to employ them! For differences between coming to Romania for studies or work, check out our video about Romanian visas here: kzbin.info/www/bejne/j33Udql9nchpsMk

[@vulcaneir2758]

@@RRPartnersBucharest Yeah but I can work with the work permit, right? Is it harder to obtain work visa?

[@conorosheafit]

🎯 Key Takeaways for quick navigation: 02:09 💼 *Starting in 2024, there are significant changes in the Romanian tax system, with four main ways of conducting business and being taxed in Romania.* 03:00 💰 *To maintain microenterprise status in Romania, you must meet specific conditions, including not having more than three microenterprises, owning more than 25% stake in one, and maintaining a maximum revenue of half a million euros.* 04:45 📈 *The normal tax rate for microenterprises in 2024 is 3%, with the 1% rule as an exception. To qualify for the 1% rate, your company's maximum revenue must be €60,000, and certain business fields are excluded.* 06:04 💸 *Once you take dividends from your Romanian company, you'll pay a dividend tax of 8%. Health insurance contributions are also applicable but have three brackets with a maximum cap for higher dividends.* 09:53 💼 *If you're a microenterprise, you must have at least one full-time employee, paying them at least the minimum wage, which is around €700, and paying associated taxes.* 11:15 🧮 *Tax calculations for microenterprises depend on your revenue, with lower taxes for higher revenues, making it a regressive tax system.* 14:45 💼 *Limited liability companies can choose between being taxed as microenterprises or on profits, with the latter option more suitable for companies with high revenue and expenses.* 16:29 💼 *The PFA (Persoana Fizica Autorizata) option for natural individuals in Romania has tax options of 10% on revenue or a fixed fee. However, the fixed fee option has a €25,000 income limit in the first year.* 18:45 📊 *In 2024, the fixed fee for PFA 'Norma de Venit' is estimated to be around €3,600, resulting in a tax-to-income ratio of approximately 14% with no expenses. It's a transitional option for those planning to switch to a limited liability company.* Made with HARPA AI

[@RRPartnersBucharest]

Thanks!

[@RexTenebris]

Do you normally pay social contributions or do you need to contribute to pension funds if Im ser employed and I'm paying already 10% income tax.

[@RRPartnersBucharest]

Hello, do you have a Romanian PFA or SRL?

[@RexTenebris]

@@RRPartnersBucharest I don’t have a an pfa nor a srl but I’m planning to open up an srl to benefit from the 1% corporation tax found in Romania for small company’s

[@cgp3225]

Hello, do you have a video on Capital Gain Tax for resident individuals ?

[@RRPartnersBucharest]

Hello! We do not have such a specific video, moreover since when it comes to individuals, things are not that clear. In the sense that, we are rather looking at tax residency, which is very different from standard residency. You can be tax resident in just one country but have temporary residency cards in multiple countries at once! Make sure to check out our entite playlist of videos about taxes in Romania here: Taxes in Romania: kzbin.info/aero/PL4HrzFwBj1ewIkKhFvr3hmJS8Kh88iint

[@ChefEarthenware]

This is very confusing. You started by saying that a MicroEnterprise would attract 3% tax on revenue plus 8% on dividends plus Social Security contributions (maxed at 1,600 Euros). Then in the examples, you said that a MicroEnterprise earning 40,000 Euros would pay 19% tax. That's a big difference. I missed where the extra taxes came from. I'm not trying to waste your time, I want to relocate my company out of the UK and I am trying to understand tax systems in different countries.

[@RRPartnersBucharest]

Hello, no time is wasted :) I think you are referring to the 19% VAT tax? Some companies are VAT, payers other not, you can find a special video on VAT in our Taxes playlist That is quite different from the 3% tax on income. If you need a more specific calculation or you still have questions, you can book a legal consult with us here kzbin.info/www/bejne/iYfYooOmhbSBoa8.

[@ChefEarthenware]

@@RRPartnersBucharest Thank you for replying.

[@RRPartnersBucharest]

No problem

[@barrym3651]

I have consulted you online and you were excellent .please confirm that a doctor doing tele medicine in EU country cab't have microenterprise ?

[@RRPartnersBucharest]

Hello, thank you! Any person can have a microenterprise. But for certain professions, like doctor lawyer etc. you must show specific qualifications. I believe you are not member of the Doctor Association in Romania?

[@barrym3651]

@@RRPartnersBucharest thank you , i am a eu citizen a medical doctor .

[@RRPartnersBucharest]

If you do not have right to practice exactly in Romania it is problematic

[@iammariarti]

Hi, thank you for the video. Is there any adequate option for a freelancer from Ukraine working for a German company? Income per month is 1000-1500 euros. As far as I understand, I must give 45% of my total income as taxes? What is the point of working then?

[@RRPartnersBucharest]

Hello, so what are you asking us exactly? You want to open a Romanian company and continue working for the German entity?

[@amsalespush]

Thanks for the detailed info. Does database development and business reporting fall unter "consulting"?

[@RRPartnersBucharest]

To some extend, but I think other activity codes might be applicable. We would need a bit more information to help you

[@PietroBolcato]

Super interesting thanks a lot for sharing! to have the tax residency in RO and to open a micro enterprise, one should still live there for 183+ days / year, is that right? is there a way to not live in romania and still open the micro enterprise there?

[@RRPartnersBucharest]

No, you can open a micro even from abroad without RO residency. Email us at [e-mail] if you need more details and a quote on company formation

[@hkhaled9119]

Hello have question please in cases you are foreign partner to Romanian citizens and the court made a divorce decision how you can know that decision is final and cannot appeal against Did the court give you a confirmation of that was the final decision and is not subject to appeal

[@RRPartnersBucharest]

You can get such a confirmation from Grefa, the court clerk

[@andruseugene]

How much does it cost per year to hire an accountant to report for a company in Romania? Thanks

[@RRPartnersBucharest]

Hello! It depends on the size of the company, how many invoices you have monthly, employees etc. Message us at [e-mail] if you want a good accountant recommendation, you can ask them for a quote

[@Natacha1111]

is one obliged to pay 25 % social contributions? Or is there a way around that? Please answer :(

[@RRPartnersBucharest]

What do you mean by, a way to get around it? Are you employed full time in Romania?

[@Natacha1111]

@@RRPartnersBucharestI’m a self employed person PFA as you call it. I own a very small business

[@RRPartnersBucharest]

PFAs need to pay these taxes

[@nicoletacazacuEUSUNT]

Care e legea de infiintare a ANAF?

[@RRPartnersBucharest]

ANAF functioneaza potrivit HG 520/2013: www.anaf.ro/anaf/internet/Bucuresti/structura_bucuresti/prezentare/legislatie_organizare_func%C5%A3ionare/!ut/p/a0/04_Sj9CPykssy0xPLMnMz0vMAfGjzOI9DD3MPIwsjLwM_MNcDQJ9vM1NfQJCjAxMjPSDU_P0C7IdFQEXjo_R/

[@nicoletacazacuEUSUNT]

@@RRPartnersBucharest FENOMENAL! Eu va intreb de LEGE si dvs. imi aruncati in fata o HG. Si nu sunteti singurii! TOTI contabilii si economistii aceeasi prostie mi-o aruncati in fata. Ori sunteti prosti, ori ticalosi, ori va place complicitatea la talharie practicata de ANAF-ul CARE NU ARE LEGE DE INFIINTARE ASA CUM CERE LEGEA.

[@nicoletacazacuEUSUNT]

@@RRPartnersBucharest si mai un lucru: in ce mi-ati trimis UNDE APARE CUVANTUL ”INFIINTARE”? Scrie organizare si functionare si eu va intreb: cum pisici poti organiza si face sa functioneze ceva... CE NU E INFIINTAT? E destul de logic ce intreb?

[@AresLeonardo]

Thanks for all the information, you explain a lot very clear.

[@RRPartnersBucharest]

Thank you, glad it was useful!

[@moseskalungi3370]

Thanks for the information. I always follow you

[@RRPartnersBucharest]

You are welcome! Glad you enjoy our content 😁

[@moseskalungi3370]

@RRPartnersBucharest if am working under a small company and the company doesn't pay salary revenue, does it affect me in future when processing romanian citizenship ?

[@RRPartnersBucharest]

Not really. But on what grounds do you have Ro residency? Family, work, business?

[@moseskalungi3370]

I have residence and am working in romania 🇷🇴.

[@RRPartnersBucharest]

If you have a valid work permit here and a valid residency on work purposes they must for sure pay you. A work contract in Romania must have at least the minimum salary. Is that not the case?