Freelancing offers you utmost flexibility. You can choose your clients, build something personal, set your own schedule, and more. If you are starting out as a freelancer in Romania, one particular thing you need to do correctly right off the bat is—registration.
With my personal experience, the ANAF freelancer registration process was one of the most perplexing things I had encountered. Trying to locate the correct form and figuring out how to pay taxes was unbelievably stressful. This is exactly why I put together this guide. It is essential for anyone living in Romania or working with Romanian clients from abroad to know how to set things up correctly.
Understanding the PFA (Persoană Fizică Autorizată) Structure
Romania is home to a large number of PFAs (Persoană Fizică Autorizată), but freelance workers are the biggest users of the service. The legal form of doing business as a sole trader known as PFAs is the most used structure of self employment in Romania. It allows submitting a contract for different services without the need of opening a company. This is preferred by the majority of graphic designers, writers, programmers, and even consultants.
Why Choose a PFA?
As a user of PFA, I can attest to how simple and hassle-free it is. Everything is up to you as there’s no need to go through the legal processes of a company owner. Financially, it’s quite affordable, and the document submission is somewhat monotonous, but quite easy after you learn the basics.
You may have constraints, however. For instance, the primary concern is having to bear personal liability for your company’s finances. Unlike an SRL (limited liability company), your personal assets cannot be shielded. Additionally, PFAs have restrictions to growth potential, whether it is in hiring or securing large investors.
Step-by-Step: The ANAF Freelancer Registration Process
Follow me through the steps with the process. Initially, it may appear confusing; however, after splitting it into sections, following the process becomes significantly simpler.
Step 1: Pick Your Activity and Find Your CAEN Code
Begin with selecting the type of freelancing work that you are going to do. In Romania, every economic activity is classified using something called CAEN codes. Be it offering digital marketing services or teaching language lessons online; there is a specific code that you must include in your registration documents.
If you don’t know which CAEN code is the most suitable for you, spend a couple of minutes searching for it on the ONRC website or consulting with an accountant who understands freelance work.
Step 2: Gather Your Documents
This one requires a bit of patience on your end. You will need to assemble:
- A copy of your Romanian ID;
- A declaration on business address permission (even if it’s your home);
- Proof of your education or experience appropriate to your profession;
- Signature sample (notarized);
- Legal declaration pertaining to business operation eligibility;
If this sounds overwhelming, relax. It’s mostly hassle and paperwork, but it’s something you most likely won’t have to do frequently.
Step 3: File Everything with the Trade Register (ONRC)
You can take your completed file to the ONRC office in your city or you can use their online services. Usually after submission, you will receive an approval in a range of 3 to 5 business days. After you receive the approval, it is followed by a registration certificate and your business will officially commence.
Step 4: Register with ANAF for Tax Purposes
The crux of the stroke awaits you now. With your official registration in hand, it is equally important to notify ANAF of your intended taxation plan which can be one of the following:
- Taxed at 10% on actual profits (income less expenses) incurred.
- Fixed rate tax on activity performed (limited use)
If exceeding minimum boundless amount, a register for pension and health contributions is needed as well.
Step 5: Consider Opening a Business Bank Account
Though not obligatory by law, separating accounts for different businesses streamlines processes, especially during tax filing periods. These accounts also enhance professionalism when invoicing or receiving international payments.
Tax Responsibilities Every Freelancer Should Know
Completing work is just one aspect side of freelancing; busting your butt handling the backend is a whole separate story. As well as every region, Romania has its own baseline set of directives placed for freelancers:
Common Tax Types You’ll Deal With
| Tax Type | Rate | Who Pays It |
|---|---|---|
| Income Tax | 10% of net income | All freelancers |
| CAS (Pension) | 25% (if over threshold) | Freelancers earning 12+ min wages/year |
| CASS (Health Insurance) | 10% (if over threshold) | Freelancers earning 6+ min wages/year |
| VAT | 19% (mandatory over 300,000 RON income/year) | High-income freelancers |
Even if it is only for consultation, it is preferable to work with an accountant during your first year. The tax system in Romania is punishing and penalties for miscalculations can be severe.
Why Good Record-Keeping is Non-Negotiable
If your plan is to throw receipts into a box and sort them “ later,” you need to rethink your strategy. In Romania, ANAF mandates maintaining meticulous records of invoices, contracts, and even expenses for a minimum of ten years.
Staying organized regardless of the system, be it spreadsheets, accounting software, or even a folder, is the most relevant form of discipline. I started with a basic Google Sheet, and eventually shifted to a cloud accounting tool, which saved me so much time and effort.
E-Invoicing: How RO e-Factura Helps Freelancers Stay Compliant
Romania now has an electronic invoicing system called RO e-Factura. The system is compulsory for businesses operating in Romania (B2B). However, even if you are invoicing clients outside the Romanian border, e-Factura is beneficial.
It reduces errors, keeps everything in one accessible location, and aids in avoiding late payments. Furthermore, ANAF perceives this as a mark of professionalism which every freelancer strives to achieve.
Dealing with Currency and Getting Paid from Abroad
Numerous freelancers in Romania operate with global clients, but receiving cross-border payments may be intimidating at first. This is good news, however. You can issue invoices in any currency your client uses: dollars, euros, pounds etc. Only ensure that you state the equivalent in Romanian Lei (RON) due for VAT purposes.
Popular Payment Platforms Include:
| Platform | Use Case |
|---|---|
| SWIFT | Bank-to-bank international transfers |
| Wise | Fast currency conversions, low fees |
| PayPal | Good for small payments |
| Revolut | Great for freelancers in the EU zone |
Always provide your full bank account details, including payment terms like 7 or 14 days from invoice date.
Annual Tax Filing: Don’t Miss This Deadline
Freelancers must submit their annual income self-declaration by May 25 of the subsequent year to ANAF, which covers income tax, health contribution (CASS), and pension contribution (CAS) if applicable.
So, for freelance income earned in 2025, the return must be filed by May 25, 2026. Avoid procrastinating; ANAF is not forgiving of late submissions.
Final Thoughts: Becoming a Freelancer in Romania the Right Way
There is joy in freelancing in Romania, but requires some initial organizing. You need to set it up like a business because, well, it is a business. Although somewhat daunting at first glance, the steps of the ANAF freelancer registration guide turn out to be a liberating experience and let you refocus onto doing what you love.
Stay on top of your filing system, understand your tax responsibilities, and remember to utilize an accountant’s services if the need arises.
