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Foreigners’ Labor Regime in Romania

Question: I am a foreign citizen interested in working in Romania. What laws apply in my case?

Answer: According to Romanian law, the foreign citizens whose period of residence overruns 90 days must request a residence permit for Romania. Similar residence permits can be issued, on demand, for all other members of the family (husband, wife or children), if they accompany that person for the stay in this country.

As stated in all official papers, companies located in an E.U state or in the EEA can send citizens employed by them in Romania, for an undetermined period of time without requesting a special working permit. These foreigners working in Romania must directly request a registration certificate/residence permit.

E.U citizens who work in Romania on the basis of a secondment agreement or different local employment contracts are no longer required to obtain an authorization to work in Romania. Furthermore, according to foreigners’ labor regime in Romania, the foreign company which appointed them for these jobs must report their presence to Romanian Labor Inspectorate, at least five days before the start of their activity.

Question: I am interested in working in Romania, but I am not from the Europen Union. What is the labor law for my case?

Answer: For people coming from other states, non-members of E.U or EEA, the expatriates’ labor regime in Romania indicates that there is a restricted period of time for only one year, and any further extension imposes the procurement of a working permit in order to register these individuals with the local employment agencies.

The foreign citizens who were appointed directors for the representative offices in Romania, as well as those who are administrators of Romanian companies can request a residence permit only under certain special conditions.

Question: What is the tax registration procedure for expats in Romania?

Answer: Foreign citizens appointed to carry out activities in Romania are requested to register with tax authorities within 15 days from the first day of activity, if certain conditions are met.

Beginning with the 1st of July 2010, the non-resident natural persons are subject to taxation in Romania, for revenues obtained from dependent activities. The expatriates’ labor regime in Romania applies starting with their first day in Romania, regardless of the number of days spent in this country.

Even though the double taxation prevention treaties, for which Romania is a signatory, dictate a different procedure which obviously prevails over the national stipulations, in order to apply all impositions, these persons must prove before Romanian tax authorities the existence of a tax residency certificate and the certified translation of this document.

Question: In regards to the foreigners’ labor regime in Romania, what should I do in case of the absence of a double taxation prevention treaty?

Answer: When there is no double taxation prevention treaty between Romania and the state where the person in question is resident, from the fiscal point of view or, if for any other reason the stipulations of any kind of treaty of this type cannot be applied, the non-resident natural person will be subject to taxation starting with the first day of activity.

These foreigners working in Romania are responsible for declaring income and paying tax until the 25th of the following month. Failure to comply with these regulations shall result in sanction by the imposition of fines and penalties for late payment of tax. 

Question: I am a foreign citizen in Romania, working under an employment contract. Who is in charge of my tax calculation, please? 

Answer: If a foreign citizen has a local employment contract, the responsibility for calculating tax and paying it falls on the Romanian employer. The Romanian company for which the foreign citizen works has to report to local tax authorities the exact period of time during which the individual carried out activities in this country. This applies to short and as well to long-term activities.

If you are a foreign citizen looking to work in Romania, we have a team of experienced laywers in Bucharest ready to assist you with your labor inquiries. Do not hesitate to contact us for a free and professional consultation. We are always here to help!

by Cristian Darie

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