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Salary and Taxes

Source: Romanian National Agency for Fiscal Administration (ANAF), Romanian Fiscal Code (Codul Fiscal) — Last reviewed: August 2026
The salary and income tax system in Romania operates on a direct withholding basis; meaning the employer is obligated to calculate and pay all statutory deductions—including income tax, health, and pension insurance contributions—directly to the National Agency for Fiscal Administration (ANAF) before transferring your pay. The salary stated in your employment contract is actually the gross salary (Salariu Brut), while the final amount deposited into your bank account is the net salary (Net). Understanding this difference and the exact contribution rates is crucial for the financial planning of anyone working in Romania.

1Statutory Salary Deductions

  • Three mandatory deductions are made from each employee's gross salary (Salariu Brut): 10% income tax, 25% pension contribution (CAS), and 10% health insurance contribution (CASS).
  • These deductions are calculated by the employer and paid directly to the National Agency for Fiscal Administration (ANAF); the employee receives the net salary (Net).

2Employer Contributions

  • In addition to employee deductions, the employer is obligated to pay a 2.25% work insurance contribution (CAM) on the gross salary, covering unemployment and workplace accidents.
  • The net salary is typically around 57 to 60 percent of the gross salary.
  • This must be verified based on current regulations and individual circumstances.

3Declaration Obligations

  • The employer must electronically submit Declaration 112 (Declarația 112), detailing employee deductions and insurance, to ANAF on a monthly basis.
  • This must be verified based on current regulations and individual circumstances.

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Clarification: Pillar II Private PensionYou may have heard that Pillar II private pension participation became mandatory from January 2025. This is not a separate, additional deduction on top of the 25% CAS contribution; a portion of that same 25% (currently around 4.75 percentage points) is automatically redirected to your individual Pillar II account, with the rest funding the public Pillar I pension system. Your total pension contribution from salary stays 25%.

🤝If You Still Have Income From Iran: Good News on Double Taxation

If you have rental property, a family business, or freelance clients in Iran while being a Romanian tax resident, don't worry about double taxation: a real, active double-taxation avoidance treaty exists between Iran and Romania. It was signed October 3, 2001, ratified by Romania under Law 279/2002, and has been in force since January 1, 2008 — its official page is still live on the Romanian tax authority's (ANAF) website. The general principle of this kind of treaty is that your tax-residence country (here: Romania, if you spend over 183 days/year there or your center of vital interests is there) must credit or exempt tax already paid in the other country from your final bill — meaning you don't pay full tax twice on the same income.

Sources: official ANAF page for Iran (static.anaf.ro), consolidated lists at noulcodfiscal.ro and infofisc.ro. The precise article-by-article details of the treaty (e.g. exactly how it applies to each specific income type) are not covered on this page — consult a tax advisor specializing in international law for your specific case.

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Frequently Asked Questions

What is the difference between gross and net salary?

After mandatory tax and insurance deductions, the net salary you receive is typically around 57% to 60% of your gross contract salary.

Does the employee have to pay their taxes separately to the government?

No, separate payment is not required; all statutory deductions for employees are calculated, withheld, and paid directly to the tax authorities by the employer.

Does Pillar II increase my CAS contribution?

No. Pillar II is a carve-out within the same 25% CAS contribution redirected to a personal account, not an additional deduction.

If I still have income from Iran, will I be taxed in both Iran and Romania?

No, not fully. A double-taxation avoidance treaty between Iran and Romania has been in force since 2008 (Law 279/2002); your tax-residence country must credit or exempt tax already paid in the other country. Consult a specialized tax advisor for your specific case.

How is crypto trading profit taxed?

Treated as "income from other sources" under Art. 116 of the Fiscal Code (Legea 227/2015). The rate was 10% through 2025; under new Law 239/2025, it rose to 16% starting 2026. If cumulative annual gains stay under 600 RON, it's exempt; otherwise the full amount is taxable (current rate from Romanian tax advisory sources; we recommend confirming with an accountant before filing).

How is freelance (PFA) activity taxed?

PFA income tax (real system) is a flat 10% on net income. Pension contribution (CAS, 25%) is only mandatory if annual net income reaches 12× the gross minimum wage; health contribution (CASS, 10%) only if it reaches 6×. Both are self-declared via the "Declarația Unică." Note: Based on our review, setting up a PFA is restricted to Romanian and EU/EEA citizens and may not be accessible to Iranian nationals — before planning on this basis, see the "SRL vs PFA" section in the Company Registration guide.

If my landlord doesn't report the rental to ANAF, does that cause a problem for me (the tenant)?

Registering the rental contract with ANAF within 30 days is the landlord's legal obligation, not the tenant's; failing to do so creates tax risk for the landlord themselves. We didn't find a clear official source on whether an unregistered contract can still be used for your address registration with the immigration authority — to be safe, it's best to insist your landlord registers the contract with ANAF.

Can I get a VAT refund on purchases when leaving Romania?

Yes, through authorized "Tax Free" operators (e.g., Ask for Tax Free) for purchases over €175 (VAT included) per invoice, provided you export the goods within 90 days and get the invoice stamped at customs. These operators deduct roughly a 6% commission plus banking fees from the refund.

What is a CNP and how do I get one?

The CNP is your unique personal identification number in Romania, automatically assigned when you receive your residence card and printed on the card itself — no separate application is needed. It's required for tax, banking, healthcare, and many other official services.

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This guide is part of the "Work & Employment" collection.

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