Contractors' Questions: What about contracting in Romania?

Contractor’s Question: I’ve potentially won a new client in Bucharest, Romania and want to know if there is anything I must do before going there to do their tech work. I was wondering if I’ll need to give proof of ID and what other document requirements there might be?

Expert’s Answer: Any British contractor pursuing an opportunity in Romania will need to be aware of a few compliance requirements.

In the first instance, you will need a fixed address in the country for the purpose of registration with the tax authorities. All foreign nationals require a temporary residence permit if they intend to stay in Romania for 120 days or more and they must contact the Ministry of Internal Affairs in the area in which they plan to reside to ensure they can obtain the permit before arrival.

If you’re planning on registering as self-employed (this is called an “Authorised Physical Person” or PFA activity), note that a University degree is required.

Also, if you choose to follow this opportunity in Romania, you will need to register with the Trade Register and for income tax, social security and VAT. The following documents will be required in order to complete this:

  • Passport (valid for at least six months beyond your expected stay)
  • Notarised degree certificate (depending on the country, this may also need to be apostilled)
  • Signed power of attorney
  • A criminal record certificate (which is obtained in Romania)
  • Residence permit
  • Job description
  • Medical certificate
  • Address of the end-client where services are to be performed
  • A rental agreement

A rental contract can be signed by a hotel if required. Before any rental contract is agreed and signed, a qualified local specialist should verify it in order to ensure that it conforms to the requirement of the Trade Registry.

It is also advisable to open a local bank account and have all income paid into that account, however, it is not essential. Payments for tax and social security will need to be made in local currency so this needs to be taken into consideration. Good luck!

The expert was Michelle Reilly, CEO of 6CATS International, which advises contractors on overseas contracting compliance.

Friday 19th Oct 2018
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Written by Michelle Reilly

Michelle Reilly is the CEO of 6CATS International and Founder of 6CATSPRO. With over 20 years experience in developing and managing contractor workforce solutions, she is an expert in international tax compliance.
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