Romania

Registrations and Establishing an Entity

Both foreign individuals and legal entities can establish corporate presences in Romania.

Companies shall have their own equity, share capital, management, registered offices, assets, names and bank accounts. All companies must be registered with the National Trade Register’s Office, organised under the Romanian Ministry of Justice. Companies should register locally with the Trade Register, at one of the 42 territorial offices, depending on the address chosen for registering their office.

The National Trade Register’s Office is a public institution aiming to maintain statistical information on business activities in Romania. Thus, in Romania, a company shall specify their main activity and is then allocated a NACE code which relates to that particular activity, such as “Property Investment”, when using the legal form of the company to buy land in Romania.

In Romania, a foreign entity can be registered for payroll purposes.

To employ workers in Romania, a company must be legally registered and have:

• A registered tax identification number (CIF)
  
  
• Social security registration with the National House of Public Pensions (CNPP)
  
  
• Registration with the National Agency for Fiscal Administration (ANAF)
  
  

Foreign companies can establish:

• Subsidiaries
  
  
• Branches
  
  
• Representative offices
  
  

Each legal form has different tax and reporting obligations.

Companies must open a Romanian bank account to process payroll and statutory payments.

The standard working time is:

• 8 hours per day
  
  
• 40 hours per week
  
  

Overtime must be compensated with:

• Paid hours at 175% of base wage, or
  
  
• Paid time off (1:1.5 ratio)
  
  

Daily and weekly rest periods must be granted.

Employment contracts must be written and registered in the Revisal system before the start of work.

Work rules must be communicated in writing and made available at the worksite.

Personal Income Tax (PIT)

• Flat rate: 10%
• Employers withhold tax and remit it monthly to ANAF

Social Contributions

Employer:

• Pension (CAS): 4% (normal conditions), 8% (special conditions)
• Health Insurance (CASS): 0%
• Work Insurance Contribution (CAM): 2.25%

• Pension (CAS): 25%
• Health Insurance (CASS): 10%
• Work Insurance: none

Filing & Payments

• Monthly returns: D112 form
• Deadlines: by the 25th of the following month
• Payments made to ANAF through the company’s RON account

Non-residents are subject to withholding tax on Romanian-source income.

Payroll Process

Payroll must be processed monthly. The payroll cycle includes:

• Gross-to-net calculation
  
  
• Generation of pay slips
  
  
• Monthly reporting to ANAF and CNPP
  
  
• Bank payment of salaries
  
  

Payslips must show:

• Gross salary
  
  
• Tax and social contribution deductions
  
  
• Net salary

Payments must be made by bank transfer to the employee’s Romanian account.

Electronic reporting is done via the ANAF e-Declaration system.

Employees must be registered in Revisal before they begin working.

Payroll documents must be retained for 5 years.

Hiring

• A written individual employment contract must be signed before the first day of work
  
  
• Employee must be registered in the Revisal system
  
  
• Employers must request:
  
  
  • ID
    
    
  • Tax code
    
    
  • Bank account
    
    
  • Medical certificate of fitness

Termination

• Notice periods:
  
  
  • 20 working days (employee)
    
    
  • 20 working days (employer)
    
    
  • Different for management or misconduct

Termination must be registered in Revisal within 1 business day.

A certificate of employment must be issued on departure.

Minimum Wage (2025)

• RON 3,700/month gross
• RON 22.50/hour

Annual Leave

• Minimum 20 working days per year
• Additional leave for seniority, disabilities, and hazardous jobs

Sick Leave

• Paid at 75%–100% of average earnings
• First 5 days covered by employer
• Remaining by CNPP, subject to documentation

Maternity & Parental Leave

• Maternity: 126 days (paid at 85% of average net salary)
• Parental: Up to 2 years (paid at 85% of reference income, capped)

Benefits

• Meal vouchers
• Private medical insurance
• Transport allowance
• Holiday vouchers (if applicable)

Non-EU/EEA nationals require:

• Work Authorization (issued by the General Inspectorate for Immigration)
  
  
• Long-term Work Visa (D/AM)
  
  
• Temporary Residence Permit (TRP)
  
  

Employer applies for work authorization. Process time: ~30 days

Visa applicants must submit:

• Job offer
  
  
• Copy of authorization
  
  
• Proof of accommodation
  
  
• Health insurance
  
  
• Criminal record
  
  

Permit is valid for 1 year, renewable.

TRP must be obtained within 60 days of arrival.

• Romanian Labour Code regulates employment
• All contracts, payslips, and filings must be in Romanian
• Payroll software must comply with Revisal and ANAF formats
• 13 public holidays per year (working on a holiday requires 200% pay or compensatory leave)
• Employee records must be archived for 5 years
• Remote/hybrid work policies must be declared via addendum to contract
• Salary must be paid at least once per month
• Penalties apply for non-compliance with wage, tax, and labor regulations
  
  

Further Information

For more information, or assistance with Romania tax enquiries please contact: gi@activpayroll.com

About This Payroll and Tax Overview

Please note that this document gives general guidance only and should not be regarded as an authoritative or complete statement of the law, regulations or tax position in any country. You should always seek specific advice for each specific situation. This document should not be relied upon as professional advice and activpayroll accepts no liability for reliance on its contents.