Tax News Update    Email this document    Print this document  

April 18, 2023
2023-0727

Digital nomads not taxable on their earnings for days working in Romania

Effective April 2023, digital nomads can be exempt from paying income tax and social charges on their earnings derived from outside Romania provided they do not spend more than 183 days in Romania in any 12 consecutive months ending in the calendar year concerned. Romanian legislation defines a digital nomad as being a foreign individual who has an employment contract with an employer registered outside Romania, or who owns a company registered outside Romania, and is able to perform their employment duties remotely from Romania by using information and communication technology. Prior to 17 January 2022, digital nomads could remain in Romania for up to 90 days within a 6-month period. From 17 January 2022, digital nomads can extend their stay beyond the initial 90-day period and remain for an additional period of up to 6 months, by applying for and obtaining a temporary residence permit.

A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.

———————————————
ATTACHMENT

Full text of Tax Alert

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement