Are you considering Romania for freelancing opportunities this year? Perhaps you already work with clients from abroad and are just starting developing your skills in writing, designing, coding, or consulting.One thing is certain, no matter the field — taxes will have to be paid correctly from day one.
Being self-employed means you can manage your time, work as you like, find new clients, and choose your work location. All these advantages do come with some obligations, and one of the most important areas of responsibility is dealing with your tax obligations.
This guide will walk you through and simplify freelancer taxes in Romania for the year 2025. It does not matter whether you are just starting out in your freelance career or you have been freelancing for several years — knowing your tax obligations will help you run your business smoothly and reduce stress in both your professional and personal life.
Let us outline the most important points to consider.
Understanding Romania’s Tax System for Freelancers
Taxation of freelancers in Romania classifies them as self-employed persons which means that it is not enough to simply generate income. It is also necessary to organize one’s financial aspects, which includes taxes. Let’s explore the implications of this.
1. Income Tax: Simple and Flat
Romania has a flat rate tax system. It doesn’t matter how high your earnings are, the rate is a fixed 10%per income. This aspect, alongside other factors, makes Romania’s tax system easier to understand than that of other European countries with progressive income taxes.
Here’s an example:
If your freelance earnings for 2025 are 100,000 RON, your income tax payable will be:
10% of 100,000 RON = 10,000 RON
Please note – this is calculated on taxable income and not gross income. If you possess legitimate business expenditures (which we will discuss later), those will lower your taxable base.
Because of the straightforward 10% flat rate, it is easy to forecast annual expenses and structures and manage cash flow.
2. Social Contributions: Pension and Health Insurance
Here is where a large number of freelancers, particularly new ones, will be surprised. Besides the income tax of 10% per income, you will also have to make social contributions. These are paid by everyone and are aimed at financing your pension and healthcare.
This is the amount you will have to pay:
| Contribution Type | Rate | Applies To |
|---|---|---|
| Pension (CAS) | 25% of your taxable income | Required for incomes above the national threshold (12x minimum gross salary) |
| Health Insurance (CASS) | 10% of your taxable income | Required for the same threshold |
Important Note:
In 2025, the social security contribution base will be 12 times the ron minimum gross salary. Even if you don’t earn that much, you can still pay money voluntarily to take advantage of the public healthcare system or build up pension years.
Example Calculation
Let’s assume that you earn 60,000 RON of freelance income annually and in 2025, the minimum gross salary is 3,700 RON.
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Minimum base = 12 x 3,700 = 44,400 RON
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Pension contribution = 25% of 44,400 = 11,100 RON
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Health contribution = 10% of 44,400 = 4,440 RON
In this case, you will owe income tax + pension + health based on this.
VAT Registration and Rates in 2025
As a freelancer You may also ask if I need to charge VAT to my customers. This answer will change depending on the income you make and who your clients are.
1. VAT Registration Threshold
VAT registration threshold Romania has a set rule, If your yearly revenue surpasses 300,000 RON, VAT (Value Added Tax) registration is mandatory.
This means you will:
- Collect VAT from your clients in Romania and the EU
- Lodge your VAT returns at regular intervals (generally every three months)
- Claim VAT on your business expenditure
If your income is below this limit, registering for VAT is at your discretion — and some freelancers decide to register voluntarily, particularly those with considerable business expenses and a clientele base of businesses that are VAT registrants.
2. VAT Rates: What You Should Know
Romania has different rates of VAT depending on the good or service rendered. For freelancers, the majority of services will be charged at a rate of 19%, the default rate.
| VAT Rate | Applies To |
|---|---|
| 19% (Standard) | Most services and goods |
| 9% | Health products, books, hotel accommodation |
| 5% | Certain cultural, educational services |
Scenario Example:
If you issue an invoice to a Romanian business client for 5000 RON and you are VAT registered.
Invoice total = 5,000 RON + 19% VAT = 5,950 RON
You will obtain the 950 RON of VAT and subsequently in your VAT return declare it to the appropriate authorities.
What About Foreign Clients?
If you are serving clients from other EU countries, or outside of the EU, the rules change:
EU clients that have a valid VAT number: You do not charge VAT, but you must declare the transaction through the VIES (Recapitulativa)
Clients outside the EU (like the US or the UK): Services are considered exports and are exempt from VAT
This allows freelancers to be competitve on an international scale while still complying with EU tax regulations.
Tax Return Filing and Deadlines
Understanding the Annual Tax Return Process
These deadlines are not only important, because when dealing with freelancers in Romania, submitting your tax returns is more than just a legal obligation, it’s a report on your finances. You have a yearly goal of declaring how much revenue you generated alongside how much money you spent running your freelance venture. This then allows the determine your tax obligation, being the final figure you owe, considering all deductions, allowances, and previous payments made.
The proces is done using ANAF which is Romania’s National Agency for Fiscal Administration. It sounds formal, but once you do it once or twice, it is second nature.
For instance, if you have recieved earnings from client invoices, digital platforms, or even direct transfer via PayPal, all of them have to be accounted for. On the other side of the equation, your reclaimed expenses — like software, office supplies, or even electricity used for your home office — also need to be validated.
Tracking all of this throughout the year makes your life easier when tax season comes around the corner.
Filing Deadline: Mark May 25 on Your Calendar
Romania offers a reasonable amount of time for their taxes to be filed. For each tax year, you have until the 25th of May the following year to submit your return. So if you are filing freelance income for 2025, your submission will be due May 25, 2026.
This is firm unless ANAF declares some unplanned extensions because of exceptional reasons like a national state of emergency or updates within the tax system. Not that you should rely on that — best to file early.
There can be monetary fines and penalties included with late submissions. Even if your income is low or even entirely void, it is necessary to file. It demonstrates to the authorities that your enterprise is operational and open.
Paying Your Taxes
Paying your taxes is the last step and not the filing itself. Whether you do the calculations or an accountant does them for you, make sure to pay your outstanding dues by the May 25 deadline.
Romania has made remarkable strides in digitizing most processes. Payments can be made via the Virtual Private Space (SPV) and if the amount you are paying is small, then for ease, access, and speed, the secure platform ghișeul.ro can also be used.
Do not forget to store your receipts of confirmation. They are not only important for proving your payment but you will need them during future audits or while applying for financial services such as a mortgage, business loan, or any type.
Microenterprise Tax Regime in Romania (2025)
The Microenterprise Tax Regime should suit you perfectly if you are a freelancer that has grown out of the stage of being an individual and are beginning to operate as a full-time business.
The purpose of this scheme is to assist small businesses which includes a whole lot of freelancers by providing simplified rules and regulations along with low tax rates.
Who Can Use It?
To qualify for this tax model in 2025, you need to meet a few important criteria:
| Requirement | Condition for 2025 |
|---|---|
| Annual Turnover | Not exceeding €250,000 (RON equivalent) |
| Employee Requirement | Minimum 1 full-time employee |
| Business Activities | No more than 20% from consulting or management services |
This model works well if you’re scaling, outsourcing, or earning enough to bring someone else on board. You invite one official employee and suddenly, through reduced taxes you make your business eligible.
Microenterprise Tax Rates
One of the most appealing elements of this regime is the tax rate:
So instead of ascribing taxable profits (income less expenses), you pay a fraction of your income. This is especially beneficial for fast growing firms as they don’t have to worry about complicated tax compliance procedures.
Deductible Expenses for Freelancers in Romania
As a freelancer, you manage a small business, and like any business, there are specific costs which are TK detachable expenses and they are extremely useful to you, especially if they are taken advantage of. These expenses can be used to lessen the business revenue, and if executed properly they can help lessen the tax burden a lot.
Navigating Tax Changes in 2025
Most of the changes are done while the tax laws are up, and this year, as in 2025, or so, will be no exception. The following is the primary set of changes that freelancers in Romania should be informed about.
Dividend Tax Rate Increases to 10%
For those who operate under a legal entity like SRL (limited company), probably there is a skeleton offered where you got used to take profit distributions like dividends. Well, you need to know that starting from January 1, 2025, the dividend tax will increase from previous amount of 8% to 10%, so there is a need for change.
Although this might look like a minor adjustment, it has an impact on larger amounts. In case you are about to allocate profits in the near future, consider lowering the date to before the end of 2024 in order to pay fewer taxes.
Introduction of the Construction Tax
Additional updates that may affect some freelancers and small businesses is the 1% construction tax. If your business possesses any sort of property, including offices or commercial buildings, you’re now paying a tax on that property calculated at 1% of its value as of December 31, 2024.
This tax is divided into two installments paid over the year and only applies to construction assets registered under your business.
Tips for Efficient Tax Management
Becoming and remaining self-employed or a freelancer includes efficiently managing your taxes. Developing a complete system eliminates the need for handling paperwork, significantly reduces errors, and ensures your freelance business remains active and shielded from fines.
The following tips will help you remain on the right track, and gallantly ahead of deadline:
Keep Meticulous Records
Start saving your receipts, invoices, and contracts now. Documenting income and expenses can be achieved through the use of Wave or QuickBooks, not to mention excel.
Work With a Tax Pro
Yes, it costs money, but hiring a Romanian accountant with knowledge of professionals is well worth it. They will help you with deductions, check your calculations, and make sure everything is submitted accurately.
Monitor Legal Updates
Legal policies and rates are always subject to change. Don’t let a small update become a major issue for you. To remain informed, subscribe to ANAF updates, follow local business social media pages, or read reputable tax blogs.
Final Thoughts
Tax freedom sounds liberating, but with it comes responsibility — and a hefty amount of it when it comes to taxes. You can be earning €5,000 or €50,000, but having a clear understanding of Romania’s tax system come 2025 will help keep your business safeguarded.
Everything becomes easier when shared. With adequate strategy, meticulous record keeping, and the right specialists, you can confidently navigate tax laws and devote more time to your passion.
