Key Takeaways
- Romania’s new law offers tax benefits to digital nomads, signed by President Klaus Iohannis.
- It exempts Romania Digital Nomad Visa holders from social security, social health insurance, and wage taxes if they stay under 183 days annually.
- The program, available to non-EU members since early 2022, requires a monthly income of about $4,050.
- Romania aims to attract digital nomads with low living costs and fast internet.
- Digital nomads won’t be tax residents, avoiding double taxation.
Bucharest, Romania–Romania has recently become the latest European country to offer designated tax benefits for digital nomads after President Klaus Iohannis signed a new bill into law on March 30.
The updated tax law exempts Romania Digital Nomad Visa holders from paying social security, social health insurance, and wage taxes to receive their benefits. To be eligible, digital nomad visa holders must be physically present in the country for no more than a total of 183 days per year (need not be consecutive).
Romania launched its digital nomad visa program in early 2022, allowing non-EU members to live and work there long-term.
Applicants must enter the country via a long-stay visa (marked D) valid for three months, after which they must apply for a residency permit (valid for six months – renewable).
Romania requires you to earn about $4,050/month to be eligible to apply.
Can avoid double taxation
“I initiated the project as I trusted it to be a law through which financial resources can be drawn to Romania, as many other member states have already done,” said Diana Buzoianu, a Member of the Chamber of Deputies in a report.
She further clarified that the legal initiative was developed in collaboration with the Ministry of Research, Innovation, and Digitalization, as well as experts from the Ministry of Internal Affairs and the Ministry of Foreign Affairs.
The new law, which makes Romania an attractive destination for digital nomads due to its low cost of living and fast internet speeds, also ensures that they will not be considered tax residents of the country, thereby enabling them to avoid double taxation.
Romania’s decision to launch the digital nomad visa and offer the abovementioned benefits aims to encourage increased (long-term) tourism to the Southeastern European nation.
This move is similar to those made by other European countries such as Estonia, Portugal, and Croatia, who have also introduced similar legislation to attract remote workers and boost their economies.
What We Think
Romania’s decision to offer tax benefits to digital nomads is a strategic move to attract remote workers and boost its economy.
By providing a favorable tax environment and capitalizing on its cost-effective living conditions and reliable internet infrastructure, Romania positions itself as an appealing destination for long-term tourism and remote work.
This initiative aligns with the trend seen in other European countries, such as Estonia, Portugal, and Croatia, all of which have embraced similar legislation to tap into the growing global digital nomad community. Romania’s forward-thinking approach is likely to enhance its competitiveness on the international stage and drive economic growth.
Good deal here. Increasingly, these nations need to find ways to make digital nomads stick around because by our very nature we are nomadic. Trying to make a nomad a home body for a year or so takes some mental gymnastics on the part of governments around the world. I love the gist behind these long-term visas, overall.