According to Law no. 22/2022, digital nomads are those persons employed with an employment contract in a company registered outside Romania and providing services through the use of information technology or who own a company outside Romania and are able to carry out their activity remotely through the use of communication technology.

If digital nomads wish to carry out their activity on the territory of Romania, they can obtain a long-stay visa by fulfilling two cumulative conditions:

• To have means of support obtained from the activity carried out, in the amount of at least three times the average gross monthly salary in Romania for each of the last 6 months prior to the date of submission of the visa application, and for the entire period included in the visa;
• To carry out the activities from which they derive income, from a distance, by using information and communication technology.

 This long-stay visa can only be obtained if the digital nomad presents the following documents:

• an employment contract concluded with a company registered outside Romania, proving the provision of remote services using information and communication technology or proof of remote management and use of technology of a company registered outside Romania for at least 3 years at the date of the visa application;
• a document issued by the company outside Romania where the digital nomad is employed or by the company he/she owns, showing all identification and contact details, as well as the scope of activity of the company, the participation of the foreigner and information on the legal representatives;
• a letter of intent detailing the purpose of the trip to Romania and the activities he/she intends to carry out here;
• a document issued by the competent institution of the local central public administration, from the place of tax residence, certifying that, at the date of the visa application, the foreigner employed or the company he/she owns has paid taxes, duties and other compulsory contributions up to date, as well as that he/she is not registered with acts and facts that have or have had the effect of tax evasion and fraud;
• a valid reserved travel ticket to the destination or driving licence, green card, registration documents of the means of transport and proof of itinerary, in the case of drivers;
• proof of medical insurance for the entire period of validity of the visa, valid on the territory of Romania and with a coverage of at least 30.000 euro;
• proof of means of subsistence obtained from the activity carried out, in the amount of at least 3 times the average gross monthly salary in Romania for each of the last 6 months preceding the submission of the visa application, as well as for the entire period of the visa;
• proof of the provision of accommodation;
• criminal record certificate or other document with the same legal value, issued by the authorities of the country of origin or of the state in which the digital nomad is resident and in which he/she earns income, proving that there are no criminal offences on record;
• other supporting documents that the Romanian authorities require.

If the extension of the temporary right of residence is desired, it will be granted for a period of six months, and further extensions will be granted only if the digital nomad meets the necessary conditions and presents an income certificate issued by the competent tax authority.

It was desired to implement a favourable tax treatment for digital nomads in order to encourage them to choose Romania to carry out their activities, and on 28 February 2023, the draft law on amendments and additions to Law no. 227/2015 on the Tax Code was adopted, introducing a number of changes to the tax regime, as follows:

Tax exemption for income outside Romania

Digital nomads will be exempted from paying income tax by the Romanian state for income earned abroad, so they will only pay tax on that income in their own country. This exemption will also apply in cases where digital nomads do not come from third countries with which Romania has not signed bilateral double taxation treaties. In order to benefit from this special regime, the foreigner will have to stay in Romania for a period or periods not exceeding 183 days during a period of 12 consecutive months ending in the calendar year concerned.

Exemption from social security and health insurance contributions

Digital nomads will not be considered as tax residents, they will continue to pay social security and health contributions in their state of residence, they will be obliged to take out health insurance in order to obtain a visa, but they will not be obliged to pay social security and health contributions in Romania during the first 6 months of residence.

This bill has been approved by the Parliament and will apply from the date of promulgation by presidential decree and publication in the Official Gazette.

Author: Av. Felicia Cioflan