Banking, Money and Taxes in Romania

Managing banking, money and taxes in Romania is a relatively straightforward process. 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

The Romanian Leu (RON) is the national currency, subdivided into 100 bani. The country has postponed its euro adoption plans several times, and Romania does not currently meet the EU’s convergence criteria.

The Romanian currency is available in the following denominations:

• Banknotes: RON 1, RON 5, RON 10, RON 50, RON 100, RON 200, and RON 500
• Coins: 1 ban, 5 bani, 10 bani, and 50 bani

Banking in Romania

Banking in Romania is relatively easy. Expats will find all the services they are familiar with, such as internet banking.

To open a bank account, expats will need their passport, proof of address, previous bank statements, and an initial deposit. You don’t need to be a Romanian resident to open an account. Sometimes copies of an employment contract or a salary slip are also required. Requirements may differ between banks.

Some of the more popular banks in Romania include Banca Transilvania, Alpha Bank, BRD, ING Bank, and Citibank.

Banking hours are typically from 9am to 5pm, Monday to Friday, with most banks having a lunch break between 1pm and 1:30pm.

ATMs and credit cards

ATMs (bancomat) are widely available in larger cities, especially at bank branches and shopping centres. There are very few or no ATMs in remote areas and villages, though.

Shops in larger cities accept major international credit cards. Romania is primarily a cash-based society, and cards are rarely accepted in rural areas and with smaller vendors, as credit fraud in Romania is an unfortunate reality. Expats should take appropriate precautions to avoid being scammed.

Useful links

• National Bank of Romania
• BCR
• Banca Transilvania
• ING Bank Romania

Taxes in Romania

The tax system in Romania is an excellent incentive for expats who want to move to Eastern Europe. Romania has a flat personal income tax rate of 10 percent. Additionally, employees may be subject to social security contributions that include health insurance contributions, with specific thresholds and rates that can vary based on income levels.

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 taxes on their global income as well as their income within Romania. On the other hand, non-residents are taxed only on their income derived from within Romania.

Romania has double-tax avoidance agreements in place with several countries, so it’s worthwhile to check with a local tax office to see whether your home country has such an agreement in place with Romania.

Useful links

• Romanian National Tax Administration Agency
• PWC Romania Tax Summary
• US-Romania Tax Treaty
• UK-Romania Tax Treaty