Banking, Money and Taxes in Romania
Expats will find that banking, money and taxes in Romania are relatively straightforward. There are a number of options when it comes to managing expat finances in Romania, with both local and international banks operating in the country.
Currency in Romania
Despite being a member of the EU, the country is only scheduled to adopt the Euro in 2024. The national currency is still the Romanian Leu (RON). Each leu is divided into 100 bani.
The Romanian currency is available in the following denominations:
Banknotes: 1 RON, 5 RON, 10 RON, 50 RON, 100 RON, 200 RON and 500 RON
Coins: 1 ban, 5, 10 and 50 bani
Banking in Romania
Banking in Romania is relatively easy. Expats will find all the services that they are familiar with, such as internet banking.
To open a bank account, expats will need their passport, proof of residency, previous bank statements and an initial deposit. Sometimes copies of an employment contract or salary slip are also required. Requirements may differ between banks.
Some of the more popular expat-friendly banks in Romania include Alpha Bank, Bancpost, UniCredit and BRD (Groupe Societe Generale). International banks with branches in Romania include Citibank, BNP Paribas and ING.
Banking hours are usually from 9am to 1pm, Monday to Friday.
ATMs and credit cards
ATMs (bancomat) are widely available in larger cities, especially at bank branches and shopping centres. They are far scarcer in rural areas and villages.
Stores in larger cities accept cards such as Visa, MasterCard, Star and Plus. Romania is largely a cash-based society. However, some shops in smaller towns and villages are unlikely to accept cards. PIN codes are standard, but credit fraud in Romania is an unfortunate reality. Expats should take appropriate precautions to avoid being scammed.
Taxes in Romania
The tax system in Romania is a great incentive for expats wanting to move to Eastern Europe. Romania has a flat tax rate of 16 percent on corporate and individual income.
For tax purposes, an individual is considered a resident if they reside in Romania for at least 183 days within a 12-month period. Romanian residents and companies are required to pay tax on their global income as well as their income within Romania. On the other hand, non-residents are taxed only on their income in Romania.
Romania has double tax avoidance agreements in place with several countries. So, expats should check with their local tax office to see whether their home country has such an agreement in place with Romania. Employers are required to deduct tax payments on behalf of their employees.