Becoming and Working as a Freelancer in Romania: The Beginner's Guide

Working as a freelancer in Romania can be incredibly rewarding. Whether you’re an EU citizen drawn by Romania’s low cost of living and flat 10% income tax, or a non-EU digital nomad eyeing the new visa, this guide has you covered. We’ll walk you through everything from PFA registration (becoming an Authorized Natural Person) to Romanian freelancer taxes and even Romania’s Digital Nomad Visa. By the end, you’ll know how to set up shop as a solo professional in Romania and keep things compliant with the latest 2025 rules. Let’s dive in!

Why Freelance in Romania? 

Romania has quickly become a hotspot for freelancers and remote workers in Europe. Here are a few reasons why freelancing in Romania is so attractive in 2025:

• Freedom of Movement (for EU Citizens): If you’re an EU/EEA citizen, you can live and work in Romania without a visa or work permit. This makes it seamless to move here and start your freelance business. Just register your residence after arriving, and you’re all set to operate as a local freelancer.
  
  
• Digital Nomad Friendly (for non-EU Citizens): Romania now offers a Digital Nomad Visa that lets non-EU remote workers stay for an extended period (up to 12 months, with possibility to extend) while working independently. This opens the door for talented freelancers worldwide to enjoy life in Romania without local employment sponsorship.
  
  
• Low Taxes: Romania boasts one of the lowest personal income tax rates in Europe – a flat 10% income tax on both employment and freelance income. There are no complex tax brackets to navigate. Plus, if you structure your business right, you can take advantage of various deductions or a simplified tax regime. We’ll cover Romanian freelancer tax details soon, including social contributions (for pension and health insurance) which are also quite reasonable.
  
  
• Affordable Cost of Living: Compared to Western Europe, Romania offers a much lower cost of living while still providing modern amenities. Your earnings can go further here – from housing to dining out, expenses are quite friendly to a freelancer’s budget.
  
  
• Thriving Tech and Creative Scene: Romania’s tech sector is booming, especially in cities like Bucharest, Cluj-Napoca, and Timișoara. There’s a vibrant community of IT professionals, designers, writers, and entrepreneurs. Networking opportunities, co-working spaces, and startup meetups abound, helping you grow your freelance business and client base.
  
  

In short, Romania offers a mix of economic advantages, community, and lifestyle perks that make it an excellent base for your freelance career in 2025.

EU Citizens vs. Digital Nomads: Who Can Freelance from Romania?

Before we get into the nuts and bolts of registration and taxes, let’s clarify who can freelance in Romania and under what conditions:

• EU/EEA Citizens: If you’re from the EU, EEA or Switzerland, you already have the right to work in Romania. You do not need a special visa to freelance or start a business here. Your main task is to register as a freelancer (typically as a PFA, explained below) with Romanian authorities. You should also obtain an EU citizen residence certificate if you stay more than 3 months, but this is usually a formality. Essentially, EU citizens can move to Romania and start working as self-employed without bureaucratic hurdles – a huge advantage.
  
  
• Non-EU Citizens (Digital Nomads): If you’re not from the EU, Romania’s Digital Nomad Visa is a game-changer. Introduced in 2022 and going strong in 2025, this visa is designed for remote workers who are employed or running a business outside Romania, but want to live in Romania temporarily. To qualify, you must show proof of a steady high income (more on the exact amount in the dedicated section below), among other requirements. The digital nomad visa for Romania grants you a 12-month stay (initially a 90-day visa that can be extended to a 1-year residence permit) without needing a local employer. Importantly, digital nomads on this visa are not considered Romanian tax residents as long as they don’t exceed certain time or connection thresholds, meaning they are exempt from local income tax and social contributions on their foreign-sourced income until they become tax residents. This makes Romania very attractive to non-EU freelancers who want to enjoy the local lifestyle while keeping their existing job or clients abroad.
  
  

Good to know: If you spend more than 183 days in Romania in a year or establish a home here, you could trigger tax residency. But the digital nomad visa alone does not automatically make you a tax resident of Romania. We’ll touch on the tax implications later, but rest assured Romania generally won’t tax your non-Romanian income if you’re here on this visa and not otherwise a resident.

Now that you know you can freelance in Romania, let’s look at how to do it—starting with registering your freelance business.

Registering as a Freelancer (PFA) in Romania

The most common way to legally work as a freelancer in Romania is by registering as a PFA (Persoană Fizică Autorizată), which translates to Authorized Natural Person. A PFA is essentially a sole trader or self-employed status – it allows you to invoice clients, earn income, and pay taxes in Romania under your own name. Here’s what you need to know about PFA registration:

Who can open a PFA?

Both Romanian nationals and foreigners can set up a PFA. This includes EU citizens (who, as mentioned, don’t need any permit) and even non-EU folks if they have a legal right to reside in Romania (for example, holding the digital nomad visa or another residence permit). You must be at least 18 years old to register a PFA, and you’ll need a clean record (no serious financial crime convictions). You also should have qualifications or experience in the field you want to freelance in – sometimes you’ll be asked to prove this with diplomas, certificates, or references when registering. For instance, if you want to register as a freelance graphic designer, having a design certificate or portfolio might be needed to demonstrate your capability.

Registration process: PFAs are registered through the Trade Register Office (ONRC) in Romania. The process is quite straightforward and involves a few key steps:

1. Choose your activity and CAEN code: Decide what service or business activity you’ll perform. Romania classifies activities with numerical codes (CAEN codes). Make sure your intended freelance activity is allowed for PFAs (most professional services, IT, creative work, consulting, etc. are allowed).
   
   
2. Gather required documents: Typically, you’ll need an application form, proof of identity and address, evidence of your professional qualifications (if applicable), a declaration that you meet the legal conditions, and possibly a background check certificate. If you’re renting an office or using your home as your business base, you might need to provide a rental contract or ownership deed for the address.
   
   
3. Submit to Trade Register and pay fee: Submit your application at the local Trade Register Office corresponding to your area. There is a small registration fee (the costs are relatively low compared to setting up a full company). The ONRC will process your application in a matter of days, after which your PFA is officially established.
   
   
4. Tax registration (ANAF): Once the Trade Register has authorized your PFA, you must register with the tax authority (ANAF) to get a tax identification code and (if needed) a VAT number. The good news is that as a PFA, you don’t need to hire a full-time accountant or have complex double-entry bookkeeping if you keep things simple. Many PFAs operate with single-entry bookkeeping and simplified accounting. Still, you’ll want to keep track of your invoices and expenses for tax reporting.

What about VAT? Not all freelancers need to register for VAT. Romania has a VAT registration threshold of RON 300,000 in annual turnover (approximately €60,000). If your freelance business earnings stay below this in a calendar year, you can choose to remain non-VAT (which means you won’t charge VAT on your invoices, and you can’t reclaim VAT on purchases either). If you exceed RON 300,000 in revenue or you want to voluntarily apply VAT, you’ll need to register for a VAT number with ANAF. Many new freelancers start without VAT to keep things simple, and register for VAT later if their business grows past the threshold or if being VAT-registered is beneficial for working with certain clients. We’ll talk a bit more about VAT in a dedicated section below.

PFA vs SRL: You might have heard of SRL (Societate cu Răspundere Limitată), which is a limited liability company, another common business form in Romania. Some freelancers debate whether to start as a PFA or an SRL. In general, a PFA is quicker and easier to set up (less paperwork and no minimum capital requirement), and for moderately earning solo entrepreneurs it comes with simpler compliance. An SRL can make sense if you plan to scale up, hire more people, or if you want the liability protection of a company. Many people start as a PFA and only consider switching to an SRL if their business significantly expands or if tax conditions change.

Tip: If bureaucracy isn’t your cup of tea, consider using a service like Xolo (we’ll plug more on this later!) to handle the registration for you. Xolo can guide you through setting up as a freelancer and even offer an umbrella solution to invoice clients without having to immediately establish your own company.

Now that your PFA is (hypothetically) set up, let’s tackle the all-important topic of taxes.

Taxes and Social Contributions for Freelancers in Romania 

One of the biggest questions when starting out is: How will my freelance income be taxed in Romania, and what do I owe in social contributions? Don’t worry – it’s relatively straightforward and quite favorable, especially compared to many other EU countries. Here’s the breakdown for Romanian freelancer taxes in 2025:

Flat Income Tax – 10%

Romania uses a flat tax system for personal income. As a freelancer (PFA), your business income is considered self-employment income and is taxed at a flat 10% rate on the net profit (after expenses). This flat tax covers income from independent activities like production, services, and liberal professions. It’s simple: calculate your taxable profit, apply 10%, and that’s your income tax. No progressive brackets, no higher rates – 10% is it. You will report and pay this tax annually through the single tax return (Declarația Unică) which is filed by May 25 of the following year (e.g. by May 25, 2026 for your 2025 income).

Social Contributions

In addition to income tax, freelancers in Romania may owe two types of social contributions:

Pension Contribution (CAS): This is the contribution to the public pension system (social security). The rate is 25%. However, not everyone has to pay the full 25% – it depends on your income level. Specifically, you are required to pay CAS only if your annual net income from freelance activities exceeds a certain threshold. That threshold is set at 12 times the gross minimum wage. As of early 2025, the gross minimum salary in Romania is RON 4,050 per month. This means:

• If your net profit is above RON 48,600 per year (which is 4,050 × 12), you must pay the 25% pension contribution.
• If your net income is below the 12x threshold (i.e., under RON 48,600), paying into CAS is optional. You can choose to contribute (perhaps to build pension credits or healthcare eligibility), but you’re not obliged to. Keep in mind, if you have no other pension contributions (e.g., from a day job), not contributing means you’re not accumulating state pension credits for that year.

Health Insurance Contribution (CASS): This is the contribution to the national health insurance system. The rate is 10%. Similar to CAS, there’s a threshold here set at 6 times the gross minimum wage. Using the RON 4,050 baseline, that threshold is RON 24,300 per year (4,050 × 6). Here’s how it works:

• If your net income exceeds RON 24,300 a year, you are required to pay the health insurance contribution. The standard amount due if you just pass the threshold is 10% of 6× minimum wage, which is RON 2,430 per year (10% of 24,300).
• If you earn more, the contribution increases, but there’s an upper cap. For very high incomes (above 60× minimum wage, which is ~RON 243,000 using 4,050 as base), the CASS is capped at 10% of 60× minimum wage (RON 24,300 max in health contributions per year). However, as of 2024, a new rule means even if you earn below the 6× threshold, you still must pay the minimum CASS of 10% of 6× minimum wage. In other words, starting in 2024, health insurance contributions became mandatory for all active PFAs, with at least the minimum payment, ensuring every freelancer has basic health coverage. So, even if you have a slow year with little income, budget for that RON 2,430 (or updated value if the minimum wage increases) as a fixed cost.
• One exception: If you already have health insurance via another route (for example, you also hold a day job in Romania and pay CASS through that salary, or you’re a student under 26, or other exempt categories), you might not need to double-pay. But in general, a freelancer should plan to contribute to CASS to have medical insurance coverage.

To summarize the social contributions in plain language: For 2025, once you earn above roughly RON 25k net, you’ll owe 10% for health insurance. And once you earn above roughly RON 50k net, you’ll owe 25% for pension. These contributions are in addition to the 10% income tax, but they only kick in at those income levels. If you earn below those thresholds, health contributions still apply (due to new rules), but pension is optional.

Note: The actual thresholds will adjust if the minimum wage changes. Always check the latest threshold based on the current minimum wage of the tax year you’re in. The concept remains the same.

Tax Filing and Payment: Romanian freelancers report their income tax and contributions on a single annual return (Declarația Unică). You usually file online by May 25 of the next year. In that return, you declare your previous year’s income and calculate the tax and contributions due. Payment is due by the same date (May 25). You can pay online through the government platform or via bank transfer. It’s pretty convenient as you handle everything in one go annually. For first-year freelancers, you may also need to estimate income for the year when you register and possibly pay advance installments, but the rules on that have been simplified in recent years.

Deductions and expenses: If you choose the standard taxation (real income system), you can deduct legitimate business expenses from your gross income to arrive at your taxable profit. Keep receipts and records for things like: office supplies, equipment, work-related travel, professional subscriptions, a portion of utilities if you work from home, etc. Romania allows a range of deductions (with some limits on certain items like cars or per diem rates). These can reduce your taxable base, meaning you’d pay less 10% tax if you have business costs. If bookkeeping isn’t your strength, it might be worth consulting an accountant or using a bookkeeping app to track everything.

Next, we’ll discuss an alternative way PFAs can be taxed – the fixed income norm system – which could simplify things further if you qualify.

PFA Taxation Models: Real Income vs. Fixed Income Norm

Romanian PFAs have two possible taxation models for their income tax: the real income system or the income norm (fixed) system. Understanding the difference will help you choose the most advantageous option for your freelance business.

• Real Income Taxation (Standard method): By default, PFAs are taxed on real income. This means you pay 10% on your actual net profit (income minus deductible expenses), as described above. If you expect significant expenses or your earnings are modest, this method ensures you only pay tax on what you truly earned as profit.
  
  
• Fixed Income Norm Taxation: Under this system, the tax authorities assign a fixed annual income amount (a norm) to your type of activity (depending on your CAEN code and sometimes the county you’re in). You pay 10% tax on that fixed amount regardless of how much you actually earned. The benefit here is simplicity and potential tax saving if you earn well above the norm. However, if you earn less than the norm, you’d be overpaying tax compared to the real system. Also note, under the norm system you don’t need to calculate or report expenses (since they don’t matter for tax), which reduces bookkeeping work. This system is often favorable for high-earning freelancers with low expenses, but only if their activity is eligible.
  
  
• Eligibility for Income Norm: Not every freelance activity can use the fixed norm system. The tax authority publishes a list of activities (by CAEN code) that qualify each year. Many common freelancing fields (design, writing, consulting) are eligible, but notably, some were removed in recent updates (for instance, certain IT activities became ineligible starting 2024). Always check the latest list from ANAF or consult a tax advisor. If your activity isn’t on the list, you must use real income taxation.
  
  
  

How to choose? If you’re eligible for both, compare your expected net income to the fixed norm for your activity:

• If the fixed norm is lower than what your net income would be, the norm system could save you money in taxes (you’d pay 10% of a smaller amount).
  
  
• If the fixed norm is higher than your likely net income, you’re better off on real system to avoid overpaying.
  
  
• Also consider compliance: norm is simpler (less accounting), which is a plus if paperwork isn’t your favorite sport.
  
  

It’s not a permanent choice either – you can switch if conditions change (typically at the start of a year). 

Both systems do not affect your obligation for VAT, CAS, or CASS. Those are determined by actual income and the thresholds we discussed earlier, regardless of how you pay income tax. For example, even if you pay a fixed tax on a norm, if your actual net income exceeds the thresholds, you’ll still owe pension and health contributions based on actual income levels.

VAT for Freelancers in Romania

We touched on VAT registration earlier, but let’s expand a bit on VAT for Romanian freelancers and when it matters:

VAT Registration Threshold: To reiterate, RON 300,000 (approx €60k) in annual turnover is the magic number. Stay below it and you can remain unregistered for VAT; go above and you must register. This threshold applies to businesses established in Romania (including PFAs). It resets each calendar year. If you start mid-year, you still get the full RON 300k threshold for that year. Once you exceed the threshold at any point, you should apply for VAT within 10 days of the month following the overrun. If you know you’ll exceed it, apply in advance to avoid issues.

Voluntary VAT Registration: You might choose to register for VAT even before hitting RON 300k. Why? Perhaps your clients are other businesses that prefer you to have a VAT number, or you have significant business expenses on which you could reclaim VAT. However, being VAT-registered means more accounting work: you’ll need to charge 19% VAT on your services (the standard Romanian VAT rate) for domestic clients, file periodic VAT returns, and comply with EU VAT rules for any cross-border services. Many freelancers postpone this until necessary, to keep things simple.

VAT Rates: The standard VAT rate in Romania is 19%. There are reduced rates (9% for things like books or healthcare, 5% for certain tourism services, etc.), but as a freelance service provider you’ll almost always deal with the 19% rate or possibly 0% (for exporting services outside the EU). If you work with EU clients, there are EU VAT OSS rules and reverse charge mechanisms to consider, but detailing those goes beyond a beginner’s guide. Just know that being non-VAT (called “VAT exempt under threshold”) can simplify invoicing for local clients (no VAT added) until you grow larger.

Invoicing without VAT: If you’re not VAT-registered, your invoices should state “Not registered for VAT – below threshold” (in Romanian one usually mentions “neînregistrat în scopuri de TVA”) to inform clients. They won’t be able to reclaim VAT on your invoices since none is charged.

For most starting freelancers in Romania, not registering for VAT is perfectly fine and common. As your business thrives and approaches that 300k RON/year mark, you can revisit the decision. And if dealing with VAT sounds daunting, remember that professional services (like Xolo or accountants) can handle VAT filings for you.

Romania’s Digital Nomad Visa: A Remote Work Paradise

A special highlight for non-EU freelancers: Romania’s Digital Nomad Visa. Launched in late 2022, this visa program is in full swing by 2025, making Romania one of the welcoming destinations for remote workers. Here’s what you should know:

• Who is it for? The Digital Nomad Visa is aimed at non-EU/EEA/Swiss citizens who are employed or self-employed outside Romania but wish to live in Romania and work remotely. If you’re an EU citizen, you don’t need this visa (you already have the right to live/work here). It’s basically Romania’s way of saying, “If you have an online income and love travel, come spend your time (and money) here!”
  
  
• Income Requirement: You must prove a robust income to qualify. The law requires at least 3 times the average gross salary in Romania for the last 6 months prior to application. Currently, Romania’s average gross salary is around RON 4,050, so this comes out to roughly RON 12,150 per month. In other words, you need to be earning at least the equivalent to RON 12,150 each month (from your remote work) and show documentation for it. This could be pay slips, bank statements, or company accounts if you’re self-employed. The aim is to ensure you can support yourself in Romania without seeking local employment.
  
  
• Other Requirements: Along with the income proof, you’ll typically need:
  
  
  • A valid passport (and it should be valid well beyond the 90-day visa period).
    
    
  • Proof of ongoing employment or business abroad. For example, an employment contract from a foreign company or proof that you own a company or freelance business outside Romania. They also ask that you have at least 3 years of work history (e.g., show that you’ve been working or running your business for a few years) to demonstrate stability.
    
    
  • Health insurance valid in Romania, with coverage of at least €30,000. This is to cover any medical emergencies during your stay.
    
    
  • Clean criminal record certificate from your home country.
    
    
  • Proof of accommodation in Romania (like a rental agreement or hotel booking) for at least part of your stay.
    
    
  • Completed application forms and some administrative fees, of course.
    
    
• Duration and Process: The digital nomad visa is a type of long-stay (D) visa for other purposes. Initially, you apply and get a visa valid for 90 days that allows entry. Once in Romania, you convert it to a residence permit that can be valid for 12 months. You can renew this permit for additional one-year periods as long as you continue to meet the criteria (especially the income proof). Importantly, this visa does not allow you to do local Romanian work (like you can’t take a local job); it’s purely for remote work/digital business you bring with you.
  
  
• Tax Implications: Here’s the cherry on top – visa holders are generally not taxed by Romania on their foreign income, as long as they don’t become tax residents. Romania normally considers you a tax resident if you spend over 183 days in the country in a calendar year or if you center your vital interests (home, family) here. However, the digital nomad legislation clarified that simply having this visa does not by itself make you a tax resident. So, many digital nomads might stay just under 183 days, or even if they stay longer, Romania’s law (and double taxation treaties) often mean you continue to pay taxes back home or wherever your employer is, not in Romania. Always double-check with a tax professional for your specific case, but the intent is that digital nomads can live in Romania tax-free on their remote income for up to a year (and potentially longer with renewals), until they formally settle and integrate long-term. This is a huge incentive – you enjoy all Romania has to offer without adding to your tax burden, at least initially.
  
  
• Why Romania for Digital Nomads? Aside from the tax perk and straightforward process, Romania offers fast internet (among the fastest broadband speeds in the EU), plentiful coworking spaces, and a rich culture and landscape to explore on your off days. You can be coding from a café in medieval Brașov one week, and hiking in the Carpathian Mountains the next, all while maintaining your income remotely. No wonder Romania is climbing the ranks in “top digital nomad destinations” lists.
  
  

If you meet the criteria, the digital nomad visa is a fantastic option to legally base yourself in Romania. If not, you might still come on a tourist visa (for shorter stays) or, if you have a European passport, you don’t need to worry about it at all. For those who want to both freelance and become a Romanian tax resident/business owner, the PFA route (with possibly an existing long-term visa or permit) would be the way – which is more relevant for someone who plans to integrate more deeply into Romania’s economy.

Simplify Your Romanian Freelance Journey with Xolo

Embarking on a freelance career in Romania in 2025 is an exciting prospect. You have the freedom to be your own boss in a country that welcomes entrepreneurs, with low taxes and now even a special visa for remote workers. By understanding the basics – PFA registration, choosing the right tax system (real vs norm), staying on top of Romanian freelancer taxes, and leveraging opportunities like the Romania digital nomad visa – you’ll be well on your way to success.

Setting up and managing a solo business can feel daunting, but you don’t have to do it alone. Xolo is here to support your journey. With Xolo Go and Xolo Leap, you have two robust platforms designed for freelancers and independent professionals just like you:

• Xolo Go – a hassle-free solution for invoicing clients and handling compliance without immediately forming a company. It’s perfect if you’re just starting out or testing the waters. You can use Xolo’s business entity to bill your clients, while you focus on the work you love. No need to worry about VAT filings or accounting – Xolo takes care of it in the background, and you simply withdraw your earnings. This is an ideal bridge for new freelancers or digital nomads who want to keep things lightweight and flexible.
  
  
• Xolo Leap – when you’re ready to level up and establish your own fully-fledged company (for example, if you decide to incorporate or need an EU business entity for your operations), Xolo Leap provides an all-in-one platform to launch and run your solo business. Originally known for helping entrepreneurs set up an EU company online, Xolo Leap handles the formation process, accounting, and compliance, so you can run a location-independent business with ease. It’s like having a personal business assistant that never sleeps.
  
  

Ready to make your Romanian freelancing dream a reality? Don’t let bureaucracy hold you back. Check out Xolo Go and Xolo Leap to see how they can simplify your life as a Romania-based freelancer. Whether you’re an EU citizen already here or a digital nomad planning your move, Xolo’s got your back with the easiest way to start and grow your freelance business in Romania. Here’s to your success in the land of opportunity – noroc! (cheers!)