On 2 April 2023, new legislative changes came into force regarding the tax regime applicable to income obtained from salaries or assimilated to salaries by non-resident individuals with digital nomad status in Romania.
More specifically, these so-called digital nomads are exempt from the payment of income tax, social security contributions (CAS) and health insurance contributions (CASS) in Romania under the following conditions:
- they are in possession of a digital nomad visa;
- they are present on the territory of Romania for a period or periods not exceeding 183 days in any period of 12 consecutive months ending in the relevant calendar year; and
- they derive income, through the use of information and communications technology, from the activity they perform under an employment contract with a company registered outside Romania or from the provision of services within companies owned by them that are registered outside Romania.
It should be noted that a digital nomad is defined as “a foreign citizen employed on an employment contract by a company registered outside Romania who provides services through the use of information and communications technology or who owns a company registered outside Romania for which he/she provides services through the use of information and communications technology and is able to carry out the activity of an employee or the activity within the company remotely through the use of information and communications technology” (art. 2, letter n.4) of Government Emergency Ordinance no. 194/2002).
Source: Law no. 69/2023 amending and supplementing Law no. 227/2015 on the Fiscal Code