How much you pay in Romania depends on how you earn, so here are all three pictures: an employment contract, self-employment and running your own company. Real headline rates, verified July 2026.
As an employee
Income tax: Flat 10%. Social contributions: 25% pension + 10% health, employee-side (heavy).
The flat 10% headline hides one of the EU's heaviest employee social loads. Rates as of July 2026. Tax rules change every budget cycle and depend on your personal situation: verify with a licensed tax advisor before acting.
As a freelancer or sole trader
Income tax: Flat 10% on real or norm income (PFA). Social contributions: 25% + 10% above thresholds tied to minimum wage.
Social contributions, not income tax, decide the PFA math. Rates as of July 2026. Tax rules change every budget cycle and depend on your personal situation: verify with a licensed tax advisor before acting.
As a company owner
CIT 16%; micro-company regime 1%/3% of turnover (criteria tightened repeatedly). Dividends 16% (raised from 10% in 2026).
The 2026 dividend hike changed the owner math; recheck the micro-company thresholds every year. Rates as of July 2026. Tax rules change every budget cycle and depend on your personal situation: verify with a licensed tax advisor before acting.
Two rules that apply everywhere
Tax residence usually follows your life, not your paperwork: spend 183+ days in Romania (or keep your centre of vital interests there) and you generally owe taxes there regardless of visa or company setup.
Special regimes and treaty rules can change these numbers dramatically in both directions. This page is educational information, not tax advice: before you commit to a structure, have a licensed Romania tax advisor confirm the current rules for your specific case.