Tax residency in Romania: a guide for Romanians returning home

Have you returned to Romania? Let's talk about tax residency:

Coming home brings many emotions and plans. Maybe you’re looking for a home, reorganizing your finances, enrolling your children in school, or starting a new job. Amid all these things, there is also a less discussed but important topic:tax residency.

Even if you have Romanian citizenship, your tax status is not determined automatically. In certain situations, returning to Romania can have tax implications, which is why it’s important to understand in advance what tax residence means and how it is determined. 🏡

What exactly is tax residency?

In short, tax residence meansthe country that considers you a tax resident and may have the right to tax certain income you earn.😊

It is not just about citizenship or where you were born. Tax authorities consider several factors to understand where you actually carry out your personal and economic life.

How is tax residency determined? 💭

Each situation is assessed individually, but some of the factors that may be considered include:

• permanent residence
• the country where the family lives
• the place where you work
• the country where your main properties are located
• current bank accounts
• registration with social and health insurance systems
• period spent in Romania

None of these criteria is ever decisive on its own. As a rule, the situation is analyzed as a whole.

What does the 183-day rule mean?

You may have already heard of it: if you spend more than 183 days in Romania within any consecutive 12-month period, this could be relevant in assessing your tax residency.

It is important to note that these do not have to be 183 consecutive days. The total number of days spent in Romania during the analyzed period is taken into account.

A near-realistic example 🙌

Let's assume you lived in Italy for a few years and have decided to return to Romania.

Upon your return:

• the family is moving to Romania
• do you work from Romania
• you transfer your business here
• use local banking services
• Are you affiliated with the insurance systems in Romania

These elements may indicate that your main connections are now in Romania.

However, if your family, primary residence, and economic activity remain in the country you returned from, the analysis may differ.

Are there any administrative obligations?

In certain situations, individuals who exceed the legal threshold must also complete and submit the documents requested by ANAF to establish tax residency.

Therefore, it is recommended to inform yourself in advance and follow the official information provided by the competent authorities.

In Brief

If you return to Romania for a longer period, it’s worth paying attention to your tax residency. It’s not a complicated topic once you understand it early on, and it can help you get a clearer picture of the obligations that may arise upon coming back to the country. 🗺️📍