Freelance Work in Romania: Status and Declarations

Published on May 1, 2026 and written by Cyril Jarnias

In a constantly evolving economic context, self-employment in Romania is emerging as a dynamic force, attracting more and more professionals seeking flexibility and professional diversity. Strongly influenced by entrepreneurship and new technologies, this sector is experiencing rapid growth, transforming the country’s economic landscape.

However, navigating this thriving environment requires a precise understanding of the legal status and tax obligations associated with self-employed workers. While tax returns can be a challenge, they are essential to ensure the legality and sustainability of these activities.

This article delves into the daily realities, advantages, and challenges faced by self-employed workers in Romania, while providing valuable insights into the current regulatory environment.

The Status of Self-Employed Workers in Romania

Legal Definition of a Self-Employed Worker in Romania

The status of a self-employed worker (“persoană fizică autorizată” or PFA) is defined by the Tax Code and specific legislation. This refers to a person who carries out an economic activity in their own name, at their own risk, without a legal subordination relationship to a client. The law imposes criteria to distinguish independent activity from salaried employment.

Main Criteria for Being Recognized as a Self-Employed Worker:

• Freedom in choosing the organization, place, and methods of work execution
• Use of one’s own material/financial resources
• Possibility of working simultaneously for several clients
• Application of specific intellectual or physical skills
• Full acceptance of professional risks related to the activity
• Possible membership in a professional organization overseeing the practiced profession
• Real possibility of delegating part of the work

At least 4 out of these 7 criteria must be met to be considered self-employed.

Professions Involved

Activities that can be carried out under PFA status include:

• Liberal professions (consultants, lawyers, accountants)
• Craft professions (plumbers, electricians)
• Independent commercial activities (IT freelancing, digital marketing)

Some regulated professions require prior registration with a professional body.

Administrative Registration Steps

1. Choose the legal form: mainly “PFA”, but “II” (individual enterprise) and “IF” (family enterprise) also exist.
2. Prepare the required documents: copy of ID, proof of address for registered office/professional domicile, sworn statement regarding the absence of any prohibition.
3. Submit the file to the National Office of the Trade Register (ONRC).
4. Receive the registration certificate.
5. Register with the local tax authorities.
6. Apply for a VAT number if necessary — mandatory within 10 days of receiving the first taxable income.
7. Optionally register with social security/mutual funds depending on the activity carried out.

Simplified summary as a list:

• Compile a complete administrative file
• Submit to the National Trade Register
• Obtain certificate + tax identification
• Register for social security & health insurance if thresholds are exceeded

Self-Employed/Freelancer	Traditional Employee
Organizational autonomy	Strong hierarchical link
Manages own tax/social obligations alone	Taxes/contributions withheld by employer
Must declare income annually	Receives monthly payslip
Not automatically affiliated with full social security	Benefits from health insurance/pension/paid leave

Main Advantages

• Total flexibility in schedule and organization
• Flat tax rate on income (fixed income tax at 10%)
• Contractual freedom with different clients

Major Disadvantages

• Less social protection than employees: pension/health insurance not automatic — mandatory contributions only above ~36,000 RON/year
• Obligation for personal annual administrative/accounting management
• No paid leave/protective employee status

Important Points Regarding Taxation and Social Contributions

If the annual turnover exceeds 36,000 RON:

• Mandatory pension contribution: 25% of taxable base
• Health insurance contribution: 10%
• VAT generally applicable once this threshold is reached (VAT = 19%)

Annual declaration mandatory before each May 25th.

Recent Reforms / Legislative Changes

Reforms are regularly introduced to:

• Harmonize tax thresholds with European standards;
• Strengthen the fight against false self-employment;
• Adjust minimum social contribution rates applicable to self-employed workers;

Special attention must be paid to annual tax announcements which may modify declaration methods or minimum contribution levels.

Always check for any recent updates directly via ONRC or ANAF, as certain transitional measures may apply depending on specific sectors/professions.

Administrative Procedures for Freelancers

Steps for Legal Registration as a Freelancer in Romania

• Choose the legal status: PFA (Persoană Fizică Autorizată) or SRL (Limited Liability Company).
• Determine the registered office (home or professional address).
• Gather the necessary documents: ID, proof of residence, diplomas or certificates of competence, property deed or lease for the office.
• Submit the application to the ONRC (National Office of the Trade Register).
• Obtain the official registration and the PFA or SRL registration certificate.

Obtaining the Tax Identification Number (TIN)

• After registration, submit the tax form (Forms 070 and 220) to the local tax administration within 15 days of registration.
• Provide a copy of the registration certificate, ID, and proof of the registered office.
• Wait for the TIN to be assigned by ANAF (National Agency for Fiscal Administration).

Implications of PFA vs. SRL Status

Criterion	PFA	SRL
Formalities	Simple, little paperwork, quick to set up	More complex, company status
Liability	Unlimited (on personal assets)	Limited to share capital
Taxation	Income tax (10%), social contributions	Corporate tax, dividends
Deductions	Deductible professional expenses	Broader deductions
Growth	Ideal for individual activity	Suitable for hiring and development
Minimum capital	None	200 RON minimum

Income Declaration and Tax Payment

• Annual declaration via the Declarația Unică (Unique Declaration), to be filed online before May 25th of the following year.
• Payment of taxes and social contributions before the same deadline.
• Documents to provide: income statement, proof of deductible expenses, bank statements, invoices.
• For PFAs, possibility to deduct professional expenses (equipment, subscriptions, travel, portion of household expenses).

Important Tax Deadlines

• May 25th: filing and payment of the annual declaration.
• 10 days after first income: VAT registration if threshold exceeded (300,000 RON).

Social Security for Freelancers

• Mandatory social security contribution if annual income exceeds the set threshold (12 times the minimum wage).
• Registration with the Social Insurance Fund (CAS) and Health Insurance Fund (CASS).
• Payment of contributions via the annual declaration or, if desired, advance payments.
• Possibility to take out supplementary private insurance.

Practical Tips for Daily Administrative Management

• Use accounting software or hire an accountant to track invoices and expenses.
• Keep all receipts and documents related to the activity.
• Regularly check for legislative changes via ANAF or specialized websites.
• Maintain a calendar of tax and administrative deadlines.
• Stay informed about VAT thresholds, contributions, and obligations specific to your field.
• Prioritize the simplicity of PFA status at the start, then consider switching to an SRL if the activity grows.

Staying Informed of Legislative Developments

It is essential to follow tax and social news, as thresholds, rates, and obligations can change each year.

Subscribing to specialized newsletters or regularly consulting ANAF helps avoid errors and penalties.

Income Declaration for Self-Employed Individuals and Expats

Tax Obligations for Self-Employed Individuals in Romania

• Every self-employed person must register with the National Trade Register (ONRC).
• Annual income declaration is mandatory for all self-employed individuals.
• If annual income exceeds 36,000 RON, payment of social contributions (25% for social security and 10% for health insurance) becomes mandatory.
• Income tax is a flat 10% of the amount earned, regardless of income level.
• Declarations and tax notices must be filed before May 25th of each year.

Income Declaration Procedures

• The declaration can be made online via the ANAF portal (National Agency for Fiscal Administration) or in person at tax offices.
• Online procedures require creating an ANAF account and using an electronic signature.
• Submit the tax form before May 25th to avoid late penalties.
• In case of delay, financial penalties and late payment interest are applied.

Income Declaration for Independent Expats and Managing Double Taxation

• An expat working as an independent in Romania must declare all locally generated income to ANAF.
• To avoid double taxation, check if a double taxation treaty exists between Romania and the country of origin.
• Most treaties provide for:
  • Taxation in the country of primary tax residence
  • Mandatory declaration of worldwide income, with the possibility of a tax credit or exemption in the country of origin for taxes already paid in Romania.
• It is advisable to consult a tax specialist to correctly apply the mechanisms for avoiding double taxation.

Tax Exemptions and Benefits for Self-Employed Individuals and Expats

• Double taxation treaties generally prevent the same income from being taxed in two different countries.
• Some treaties provide for specific exemptions for short-term income or certain types of independent activities.
• Self-employed individuals can benefit from a simplified tax regime (flat rate of 10%) and a VAT exemption under certain turnover thresholds.

Practical Tips for Accounting and Document Preparation

• Keep an up-to-date record of invoices issued and received, retaining all supporting documents.
• Use accounting software or a dedicated spreadsheet to track income, expenses, and calculate amounts to declare.
• Prepare in advance:
  • Bank statements for professional transactions
  • Copies of contracts and invoices
  • Any tax withholding certificates
  • Certificates of tax residence, if necessary for applying a double taxation treaty
• Anticipate the declaration by gathering all documents as soon as the fiscal year ends.

Available Resources for Support in Romania

Resource	Description
Tax Lawyers/ANAF	Personalized advice, dispute management, compliance
ANAF Platform	Online tax declarations, guides, and forms
Accounting Firms	Bookkeeping, declaration assistance
Chambers of Commerce	Practical information, connecting with experts
Expat Communities	Experience sharing and provider recommendations

Key Takeaway: Meeting declaration deadlines and keeping all tax documents safe is essential to avoid any penalties and secure your situation in Romania. Professional assistance is highly recommended for complex or cross-border situations.