In order to determine if digital nomads are required to pay taxes in Romania, it is important to understand the country’s tax laws and regulations.
Romania has a progressive tax system, which means that the amount of tax you owe is based on your income level. The standard tax rate in Romania is 16%, and individuals who earn more than RON 220,000 (approximately $51,000) per year are subject to a higher tax rate of 25%.
For digital nomads who are resident in Romania, their worldwide income is subject to Romanian tax. A person is considered a resident of Romania if they have their permanent home in the country or if they stay in the country for 183 days or more in a calendar year.
Non-residents are only taxed on their Romanian-sourced income, which includes income from Romanian employment, rental income from Romanian property, and income from Romanian-based business activities.
It is important to note that Romania has a tax treaty with many countries, including the United States, which aims to avoid double taxation of the same income. This means that, if you are a digital nomad who is resident in another country and you have income from Romania, you may be exempt from Romanian tax if the tax treaty between Romania and your home country provides for such an exemption.
In terms of tax compliance, digital nomads must ensure that they file their taxes on time and accurately in both Romania and their home country. Failing to do so could result in penalties, fines, and interest charges.
In conclusion, the tax obligations for digital nomads in Romania will depend on their residency status and the nature of their income. It is important to seek professional advice and to research the tax laws and regulations in both Romania and your home country to ensure that you comply with all relevant tax obligations.