Romania

{"ftc_utility":"medium","fbar_trigger_notes":"US expats in Romania are required to maintain a local bank account for most practical purposes (salary payments, utilities, etc.). Romanian bank accounts held by US persons must be reported on FBAR if the aggregate balance exceeds $10,000 at any point during the year. Romanian banks are FATCA-compliant and report US account holders to Romanian tax authorities, which exchange information with the IRS.","ftc_utility_reason":"Romania taxes employment income at a flat 10%, which is below the US marginal rates for most expats. The foreign tax credit generated will offset some but not all US tax liability on Romanian-source income. Expats with income taxed at US rates above 10% will still owe residual US tax after FTC. FEIE may be more advantageous for many earners, but FTC can be useful for those with Romanian dividend or other investment income taxed locally.","presence_day_count_notes":"Romania does not impose exit or entry restrictions that would complicate the 330-day count for US citizens. A US expat can travel freely within the Schengen area. Days in Romania count toward the 330-day total as long as the individual is outside the US. No visa-related presence cap applies to US citizens who can stay in Romania under EU free movement rules if they have residency status, or under the standard 90-day Schengen tourist allowance without residency.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":9600,"local_tax_rate_on_earned_income":0.1,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Romanian-source pensions above a monthly deduction threshold are taxed at 10%. Foreign pension income received by Romanian tax residents is generally subject to Romanian income tax at 10%, with credit available for foreign taxes paid. Romanian state pension recipients benefit from a personal deduction that reduces or eliminates tax on lower pension amounts.","tax_rate":0.1,"locally_taxed":true},"social_security":{"notes":"The US-Romania tax treaty and the totalization agreement context should be considered. US Social Security benefits received by Romanian residents are generally taxable only in the US under the treaty, though the older treaty's specific wording should be verified. In practice, many US expats rely on the treaty to avoid Romanian taxation of US Social Security benefits.","locally_taxed":false,"treaty_protection":true},"roth_distributions":{"notes":"Romania does not recognize the tax-exempt status of Roth IRA distributions under US law. Distributions may be treated as pension or income and taxed at 10%. The 1974 treaty does not specifically address Roth accounts. US expats in Romania should seek specific advice on treaty positions for Roth distributions.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"The US-Romania income tax treaty (in force since 1974, with protocol) generally allows Romania to tax pension income received by Romanian tax residents. US-sourced 401k and IRA distributions received by a Romanian resident are likely taxable in Romania at the flat 10% income tax rate. The treaty Article 18 covers pensions; US source pensions paid to Romanian residents may be taxed in Romania. A foreign tax credit for US taxes withheld may be available under the treaty. Treaty language should be reviewed carefully as the 1974 treaty is older and may not address Roth accounts explicitly.","tax_rate":0.1,"locally_taxed":true,"treaty_protection":true}}

{"rate":0.1,"notes":"Capital gains on the sale of securities and most other assets are taxed at a flat 10% rate for individuals. Real estate gains have specific rules depending on holding period.","details":{"tax_type":"Capital Gains Tax","country_name":"Romania","country_iso_code":"ROU","source_references":["PwC Worldwide Tax Summaries - Romania","Romanian Fiscal Code (Legea nr. 227/2015)"],"last_verified_date":"2026-06-03","general_description":"Romania taxes individual capital gains at a flat 10% rate, the same as the general personal income tax rate. Gains from the sale of real property held more than 3 years benefit from a reduced base calculation; gains from property held under 3 years are taxed at 3% of the transaction value or gain depending on circumstances. Corporate capital gains are included in standard corporate income and taxed at the applicable CIT rate.","corporate_capital_gains":{"rate":0.16,"tax_treatment":"Included in taxable corporate income and taxed at the standard corporate income tax rate of 16%. Certain reinvestment exemptions may apply."},"individual_capital_gains":{"rate":0.1,"tax_treatment":"Flat 10% rate applies to gains from securities and other movable assets. Real estate disposals are subject to a separate transfer tax regime: 3% on the taxable gain for properties held under 3 years, and reduced amounts for longer holding periods. Social health contribution (CASS) of 10% on the annual net gain above the minimum wage threshold may also apply."}}}

{"notes":"Dividends paid to Romanian resident individuals are subject to a flat 8% withholding tax. Non-resident individuals are also subject to 8% withholding unless reduced by a tax treaty. In addition, CASS (social health contribution) of 10% applies on dividend income above the 6-minimum-wage annual threshold. EU parent-subsidiary directive may exempt corporate recipients meeting ownership thresholds.","rates":[{"rate":0.08,"type":"withholding","notes":"Standard flat withholding rate on dividends paid to resident and non-resident individuals, effective from 2023 (reduced from 5% that applied prior to 2023)."},{"rate":0.1,"type":"flat","notes":"CASS social health contribution applies on net dividend income exceeding 6 minimum gross wages per year (approx. RON 18,000 in 2024), capped at a ceiling based on 60 minimum wages."}]}