Contractors in Romania can be set up as Employees.
Tax year – The tax year is the calendar year for individuals.
Immigration – Citizens of the EU or the EEA do not need a work and residence permit. Foreign citizens (who are not EU or EEA citizens) must obtain a work permit in order to perform activity as an employee. The work permit is issued by the Romanian Office for Immigration. As a rule, the work permit is issued for a one-year period.
Workr Fees – €575 per month plus €350 set up fee. This applied to both the employed and self-employed solutions
Registration – The application for the TIN (tax identification number) can be submitted directly to the local tax office, at the registry desk, or by post (Romanian Postal Office), via acknowledgment of receipt procedure. The certificate reflecting the tax identification number should generally be issued by the Romanian tax authorities within approximately 5 to 10 business days from the time of submission of the complete file.
When staying for more than 3 months in Romania a residency card will be required. A fixed address is would therefore be a requirement.
Contract – A standard Romanian employment contract will be issued to the candidate.
Employers social security – contributions are 2.25% of the gross salary with no income ceiling.
Employees social security – contributions are 25% for social (pension) insurance and 10% for the health insurance contribution.
Tax – Income tax is a flat rate of 10%
Benefits – Each calendar year, an employee is entitled to receive at least 20 working days of paid annual leave. Public holidays are not counted as part of the annual leave.
Annual leave cannot be exchanged, transferred, limited or waived in exchange for a compensation payment – even by agreement. The only instance where an employee may be paid a cash compensation for their annual leave is when their employment contract is terminated, in this case the leave can be paid in lieu.