The digital nomad, by the law, is a foreigner who is employed with an employment contract by a company registered outside Romania and who provides services by using information and communication technology, or who owns a company registered outside Romania, within which they provide services by using information and communication technology, and can carry out their work or activities from a distance by using information and communication technology.
To regulate the right of residence in Romania, by the law 22/2022, digital nomads can request from the competent Romanian Consulate a long-stay visa for “other purposes”, if they meet the following specific conditions cumulatively, in addition to the general conditions:
- they have means of support obtained from the activity they carry out, worth at least three times the gross average monthly salary in Romania for each of the last six months prior to the date of visa application, as well as for the entire period covered by the visa;
- they carry out remote activities from which they obtain income, using information and communication technology.
To demonstrate the fulfilment of the above-mentioned specific conditions, digital nomads must present the following:
- the employment contract concluded with the company registered outside Romania, in order to prove the provision of distance services, or proof of remote administration and the use of information and communication technology of a company registered outside Romania for at least three years as of the date of visa application;
- the document issued by the company registered outside Romania with which the foreigner has an employment contract, or by the company registered outside Romania owned by the foreigner, presenting all identification and contact data of the company, its field of activity, the foreigner’s participation in the company, and information about its legal representatives;
- a letter of intent, in which the foreigner details the purpose of the trip to Romania and the activities he/she intends to carry out on Romanian territory;
- a document issued by the competent institution at the place of fiscal residence, proving that, at the date of visa application, the employed foreigner or, as the case may be, the company he/she owns has paid taxes, fees, and other mandatory contributions up to date, and that it is not registered with acts and facts that have or have had the effect of tax evasion and tax fraud;
- proof of the means of support obtained from the activity carried out, in the amount of at least three times the gross average monthly salary in Romania for each of the last six months prior to the date of visa application, as well as for the entire period covered by the visa.
The temporary right of residence for digital nomads can be extended if, in addition to the general conditions provided by law, the specific conditions are cumulatively fulfilled, such as proving the means of support in the amount of at least three times the gross average monthly salary for the period for which the extension of the right of residence is requested.
At the first extension of the temporary right of residence, the digital nomad must provide, among other documents prepared for the visa, the employment contract concluded with the company registered outside Romania or proof of remote administration of such a company registered outside Romania for at least three years as of the date of visa application, as well as the document issued by the company registered outside Romania presenting all identification and contact data of the company, its field of activity, the foreigner’s participation in the company, and information about its legal representatives.
In the case of digital nomads, the first extension of the temporary right of residence is granted for a period of six months, and for subsequent extensions for one year each.
What about taxes?
The law 69/2023 that provides exemptions from income tax, social security contributions and health contributions for digital nomads has been promulgated by Klaus Iohannis on 30th of March 2023. You only need to meet the simple condition of being present on the Romanian territory for a period of up to 183 days in a consecutive 12-month period. The normative act modifies the Tax Code, establishing the fiscal regime applicable to digital nomads.
Additionally, income from wages or salary-like payments earned by a digital nomad who performs remote work using information and communication technology, either as an employee or as an owner of a foreign-registered company, will not be taxable in Romania provided that the individual is present in Romania for a period or multiple periods that do not exceed 183 days during any 12-month period ending in the relevant calendar year.
