Moving to Romania from the U.S.

Taxes for Americans

Two Tax Systems, a Treaty, and the 2026 Social Security Agreement

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Moving to Romania adds a second tax system; it does not remove the first while you remain a U.S. citizen. The United States taxes its citizens on worldwide income wherever they live⁵⁶. The two countries have an income tax treaty, signed on December 4, 1973 and in force since February 26, 1976; as of October 2026 the IRS lists no newer one^6,57. Since September 1, 2026 they also have a Social Security agreement⁷. What follows is the map; the route is a job for a cross-border tax adviser.

When you become tax resident

You are resident in Romania if your domicile or your center of vital interests is there, or if you are present for more than 183 days in total in any 12 consecutive months ending in the year. Residents are taxed on worldwide income: from the first day you declare your center of vital interests in Romania, or from your first day of arrival under the 183-day test¹⁰. If both countries treat you as resident, the treaty decides: you are resident where you have a permanent home, then where your personal and economic relations are closest, then where you habitually live⁶.

Income tax: a flat 10%

Romania taxes income at a flat 10%, not progressively, with no regional or local income tax: pay, self-employment, rent, investments and pensions alike¹⁰. The main exceptions¹⁰:

• Dividends: 16%, as a final tax, for dividends distributed from January 1, 2026 (10% before).
• Interest: 10%, as a final tax.
• Investment gains: through Romanian brokers, 1% on holdings kept at least 365 days and 3% on shorter ones, withheld at source; through foreign brokers, such as a U.S. brokerage account, 16% of the annual net gain, which you declare yourself. Gains on crypto assets are also taxed at 16%.
• Digital nomads: a digital nomad’s salary from abroad is exempt, under the Fiscal Code’s title on non-residents, while you are present no more than 183 days in any 12 consecutive months. By our reading the exemption ends once you are tax resident: after 183 days, or earlier if your center of vital interests moves to Romania, for example because your family lives with you there (articles 7(28) and 228(d))¹⁰.

Foreign income goes on the annual return, the declarația unică (form 212), due by May 25 of the following year, with the tax paid by the same date after any treaty credit. The credit for foreign tax is capped at the Romanian tax on that income, worked out per country and per type of income, and foreign amounts are converted at the National Bank of Romania’s annual average rate for the year¹⁰. We found no special regime for newcomers or retirees: the flat 10% is the general rate¹⁰.

Pensions, Social Security and retirement accounts

• U.S. Social Security paid to a resident of Romania is exempt from tax in both countries (article 17). The treaty’s saving clause, which otherwise lets the United States tax its citizens as if the treaty did not exist, does not affect article 17 (article 4(4)(a))⁶. Ask your adviser how to claim this on your U.S. return.
• Private pensions paid for past employment, and annuities, are taxable only in the country of residence, which would be Romania (article 16). Under the saving clause, the United States can still tax its citizens on them; by our reading, Romania should then give a credit for the U.S. tax, within its limits (article 21(1)); confirm this with your adviser⁶.
• U.S. federal government pensions paid to a U.S. citizen for service to the national government are exempt from Romanian tax under article 18, but that protection is limited: the saving clause lets Romania tax its own residents as if the treaty did not exist, and it spares article 18 only for people who are not Romanian citizens and do not have “immigrant status” in Romania (article 4(4)(b)). So if you live in Romania as a resident, Romania may tax your federal government pension at 10%, and the health contribution may apply too. State and local government pensions fall outside article 18, which covers only service to the national government; by our reading they are private-type pensions taxed in your country of residence under article 16, so Romania can tax them. Article 17 also exempts “other public pensions paid by one of the Contracting States”; whether that reaches a state or local pension, rather than article 16, is a question for your adviser. Whether a residence permit or long-term residence gives you “immigrant status” is a question for your adviser⁶.
• Investment income: tax at source on dividends paid to a resident of the other country is capped at 10%; the other country exempts capital gains unless you have a permanent establishment there or spend 183 days or more there in the year, though the United States still taxes its citizens under the saving clause (articles 10 and 13)⁶.
• Romania’s own rule for foreign pensions: 10% of the gross annual pension less 3,000 lei a month and less the health contribution. Foreign private, voluntary or occupational pensions similar to Romanian ones get the same treatment if you have no documents showing your net contributions¹⁰.

The health contribution (CASS) and social contributions

• Who pays: foreigners who have obtained a residence permit, or have a domicile in Romania, pay the health contribution, except digital nomads present no more than 183 days. The rate is 10%, on income from Romania and from abroad, “with respect for” EU rules and the social security agreements Romania is party to¹⁰.
• On pensions: 10% of the part above 3,000 lei a month (about $628), for each pension; pensions up to 3,000 lei a month are exempt. If you receive a pension from abroad on which the contribution is due, you must file the annual return¹⁰.
• On investment, rental and other income: a flat amount on a notional base of 6, 12 or 24 minimum wages, at the minimum wage in force on January 1 of the year the income is earned, depending on whether your income reaches 6, 12 or 24 minimum wages; nothing is due below 6. For self-employment income the cap is 72 minimum wages¹⁰.
• With no such income, you can opt in to be insured: 2,430 lei for 2026, about $508; see health insurance^10,18.
• Employees pay a pension contribution of 25%, of which 4.75% goes to a privately managed pension fund¹¹, as well as the 10% health contribution¹⁰.

Inheritance, gift and wealth taxes

• No general wealth tax, but a special tax on high-value property: 0.9% of the part of a home’s taxable value above 2,500,000 lei, about $523,002, set by the local tax office¹⁰.
• Inheritance: no tax if the succession is settled within two years of the death; after that, 1% of the estate¹⁰.
• Gifts of property between relatives up to the third degree and between spouses are exempt from the tax on transfers¹⁰.
• Selling property: 3% or 1% of the price; see buying¹⁰.

What you still file in the United States

For U.S. tax preparation and planning, our sister brand eTaxNexus works with Americans abroad.

Renting and buying

Lease Rules, the Land Rule, and What Selling Costs

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Renting under the Civil Code

Leases are governed by articles 1.777 to 1.835 of the Civil Code. Our researcher compared the consolidated text of December 19, 2025 with the 2011 republished text and found the same wording, so these articles have not changed since 2011; the rules below are cited to the 2011 text⁶⁴.

• Term: at most 49 years, with no minimum. If no term is agreed, an unfurnished home is let for one year, and a furnished room or apartment for the period the rent is set for, such as a month⁶⁴.
• Leaving a fixed-term lease early: you may end it on at least 60 days’ notice, and any clause to the contrary is void. The landlord may end it early only if the contract allows it for the landlord’s or family’s own housing needs, and then with the same notice as below (at least 60 days for monthly rent)⁶⁴.
• Open-ended leases: you give notice of at least a quarter of the rent period, about a week for monthly rent; the landlord gives at least 60 days if rent is monthly or longer, and 15 days if shorter⁶⁴.
• The end of the term: a fixed-term lease ends automatically; if you stay on without objection, it renews as an open-ended lease on the same terms⁶⁴.
• Deposits: we found no cap and no rules on deposits in the lease articles, so the amount is whatever the contract says⁶⁴.
• Registration: a private landlord must register the lease, and any later change, with the tax authority within 30 days¹⁰. A lease registered with the tax authority, or signed before a notary, can be enforced for unpaid rent and for leaving at the end of a fixed term without a new lawsuit. To bind a buyer if the landlord sells, the lease must be noted in the land register⁶⁴.
• Your protections: clauses forcing you to use the landlord’s insurer, or to prepay repairs estimated only by the landlord, are void, and eviction needs a court order unless the law provides otherwise⁶⁴.

Renting out a home you own is taxed at 10% of the rent after a flat 20% deduction, so 8% of the gross rent by our arithmetic¹⁰.

Buying: buildings yes, land no

The Constitution lets foreigners acquire land only under conditions arising from Romania’s EU accession, under international treaties on a reciprocity basis, or by inheritance by law²⁴. Law 312/2005, as the government’s single point of contact summarizes it, adds that citizens of countries outside the EU and EEA, which includes the United States, may acquire land only under treaties, on a reciprocity basis; inheritance is outside that law²⁵. As of October 2026 we found no U.S.–Romania treaty that grants land rights.

• What you can own: the government’s single point of contact says citizens of non-EU states may own buildings and get a surface right (a right to use the land for as long as the building stands) over the land beneath²⁵.
• Through a company: a company may acquire the property rights it needs for its business, under its stated activities and subject to the rules on land acquisition by foreigners and foreign companies²⁵. A company set up only to hold a family home may not meet that test.
• In practice, by our reading: an apartment is owned with a share of the common parts and a building right over the land; a house with its plot cannot put the land in your own name, so the land is held by a surface right or, where the law allows it, through a company. Ask a Romanian lawyer before you sign.

Taxes on buying, owning and selling

• The sale tax falls on the seller: 3% of the value if the property was held up to three years, 1% if held longer. It is worked on the value declared in the contract, or on the minimum value in the notaries’ market study if that is higher, and the notary collects it before signing¹⁰.
• VAT on a new home from a developer is the standard 21%; the 9% transitional rate ended with deliveries on July 31, 2026¹⁰.
• The annual building tax on a home is 0.08% to 0.2% of its taxable value, at a rate set by the local council (in Bucharest, the General Council); from 2026 the rate may not be lower than the council’s 2025 rate. The taxable value is the built area times a table value, such as 2,677 lei per square meter for a concrete or brick building with all utilities, before coefficients for the locality and zone. That is a tax value, not a market price¹⁰.
• The high-value property tax: 0.9% of a home’s taxable value above 2,500,000 lei¹⁰.
• Notary and land registry fees: we could not confirm them from an official source; get a written quote from the notary.

What property costs: the official price index

We found no official statistic of house prices per square meter for Bucharest or any other town: the statistics office publishes a house price index, not prices. On Eurostat’s house price index, Romanian prices were 12.1% higher in the second quarter of 2026 than a year earlier and 4.4% higher than in the first quarter; new dwellings rose 12.8% in a year and existing ones 11.8%. The annual rise was 6.6% in the third quarter of 2025, 6.7% in the fourth and 7.8% in the first quarter of 2026^65,66. An index shows how prices change, not what a home costs; for a price, you need listings or a valuation.

Short-term rentals

Renting out one to seven rooms short-term, for stays of up to 30 days to the same person, is taxed as rental income: 10% of the gross after a flat 30% deduction, with platform commissions left out of the gross, and you must keep an occupancy register. With more than seven rooms it counts as an independent business¹⁰. The EU regulation on data sharing for short-term rentals, (EU) 2024/1028, has applied since May 20, 2026¹³. We could not confirm the tourism licensing and classification rules or any national registration scheme under the EU regulation; ask the tourism authority and a Romanian adviser before you buy a property to rent out.

Entry rules

Before the Visa: Visiting Under EES and ETIAS

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Romania has been an EU member since 2007². It joined the Schengen area for air and sea travel on March 31, 2024, and checks at its internal land borders ended on January 1, 2025^3,4. As an American you can visit without a visa for up to 90 days in any 180-day period across the Schengen area, and since then days in Romania count toward that limit²¹. The EU’s Entry/Exit System (EES) started progressively on October 12, 2025; since April 10, 2026, when it became fully operational, it has recorded your entries and exits with fingerprints and a facial image instead of passport stamps, which lets border systems detect overstays automatically¹⁷. Once you hold a Romanian residence permit or long-stay visa, you are not registered in the EES; you show the permit with your passport⁸².

As of October 8, 2026, ETIAS, the EU travel authorization for visa-free visitors, is not yet running and no start date has been announced; the EU says it will give several months’ notice⁸³. When it starts it will cost €20 (free under 18 and over 70) and last three years or until your passport expires^84,85. Residence permit and long-stay visa holders will not need it⁸⁵.

Sources

Every Figure on This Page, and Where It Comes From

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We use official sources only: Romanian laws as published by the bodies that apply them (the General Inspectorate for Immigration, the tax authority ANAF and the Senate) or in copies published by other public bodies (the medicines agency, the Argeș County Council and the National Council for Combating Discrimination); the Ministry of Foreign Affairs’ e-Visa portal; the National Bank of Romania, the National House of Public Pensions, the National Institute of Statistics, the National Meteorological Administration, the energy regulator and the licensing directorate; the government’s e-government portal; city transit operators; the EU, Eurostat, Eurydice and the European Central Bank; and U.S. federal agencies and the U.S. Embassy in Bucharest. Romanian-language titles are given in English. Each source was read on the date shown; where a page or a consolidated law carries its own date, the title says so. Where official texts can be read two ways, or disagree, we say so. If you spot something that has changed, email [email protected].

1. Reference exchange rates, daily file (it shows the latest fixing; on October 7, 2026 it gave USD 1 = 4.7801 lei). National Bank of Romania. Official page. Checked October 8, 2026.
2. Romania: EU member state since January 1, 2007; Schengen member since March 31, 2024. European Union. Official page. Checked October 8, 2026.
3. Council Decision (EU) 2024/3212 on the full application of the Schengen acquis in Bulgaria and Romania. EUR-Lex. Official page. Checked October 8, 2026.
4. Emergency Ordinance 194/2002 on the regime of foreigners in Romania (the Foreigners Act), consolidated text valid on April 30, 2026 (in Romanian). General Inspectorate for Immigration of Romania (IGI). Official page. Checked October 8, 2026.
5. Law 44/2026 on the state social insurance budget for 2026, article 19: average gross wage of 9,192 lei (in Romanian). National Agency for Fiscal Administration of Romania (ANAF). Official page. Checked October 8, 2026.
6. Convention between the United States and Romania for the avoidance of double taxation, signed December 4, 1973. Internal Revenue Service. Official page. Checked October 8, 2026.
7. Status of totalization agreements. Social Security Administration. Official page. Checked October 8, 2026.
8. Law 14/2025 amending Law 21/1991 on Romanian citizenship, signed text (Senate file L333/2024; in Romanian). Senate of Romania. Official page. Checked October 8, 2026.
9. Agreement between the United States and Romania (pamphlet). Social Security Administration. Official page. Checked October 8, 2026.
10. Fiscal Code (Law 227/2015), consolidated text last updated by Emergency Ordinance 38/2026 (in Romanian). National Agency for Fiscal Administration of Romania (ANAF). Official page. Checked October 8, 2026.
11. Clarifications on the 2026 social insurance budget law: minimum wage from July 1, 2026 and contribution rates (in Romanian). National House of Public Pensions of Romania (CNPP). Official page. Checked October 8, 2026.
12. Monthly minimum wages, Romania, in lei (dataset earn_mw_cur). Eurostat. Official page. Checked October 8, 2026.
13. Regulation (EU) 2024/1028 on data collection and sharing relating to short-term accommodation rental services. EUR-Lex. Official page. Checked October 7, 2026.
14. Emergency Ordinance 32/2026 on foreigners' access to the labor market, in force April 27, 2026 (in Romanian). General Inspectorate for Immigration of Romania (IGI). Official page. Checked October 8, 2026.
15. Visa fees. Ministry of Foreign Affairs of Romania, e-Visa portal. Official page. Checked October 8, 2026.
16. Commission Delegated Regulation (EU) 2026/131: non-commercial movement of pet animals. EUR-Lex. Official page. Checked October 7, 2026.
17. Entry/Exit System (EES). European Commission, Migration and Home Affairs. Official page. Checked October 7, 2026.
18. Press release 882 of September 4, 2025: health insurance contributions of people without income (in Romanian). National Agency for Fiscal Administration of Romania (ANAF). Official page. Checked October 8, 2026.
19. Press release: additional measures to inform electricity customers as the support scheme ends on July 1, 2025 (in Romanian). National Energy Regulatory Authority of Romania (ANRE). Official page. Checked October 8, 2026.
20. Romania amended the Law on Romanian citizenship on March 12, 2025. European Union Agency for Asylum, Data Insights Portal. Official page. Checked October 8, 2026.
21. Entry and exit requirements for non-EU nationals (90 days in any 180-day period). Your Europe, European Union. Official page. Checked October 7, 2026.
22. Exchanging a foreign driving license for a Romanian one: documents required (in Romanian). Directorate for Driving Licenses and Vehicle Registration, Ministry of Internal Affairs of Romania (DGPCI). Official page. Checked October 8, 2026.
23. Order 163/2011 of the Minister of Internal Affairs, annex 3: states whose licenses are exchanged without examination (in Romanian). Directorate for Driving Licenses and Vehicle Registration, Ministry of Internal Affairs of Romania (DGPCI). Official page. Checked October 8, 2026.
24. Constitution of Romania, form applicable on November 24, 2020 (in Romanian). National Council for Combating Discrimination of Romania (copy of the Constitution). Official page. Checked October 8, 2026.
25. Buying real estate: rights of citizens of non-EU states (in Romanian). Government of Romania, e-government single point of contact. Official page. Checked October 8, 2026.
26. HICP, all items, Romania: annual rate of change (dataset teicp000, updated October 2, 2026). Eurostat. Official page. Checked October 8, 2026.
27. HICP, Romania: monthly annual rates of change, all items (dataset prc_hicp_minr). Eurostat. Official page. Checked October 8, 2026.
28. Long-stay visa, with the note on United States nationals. Ministry of Foreign Affairs of Romania, e-Visa portal. Official page. Checked October 8, 2026.
29. Other purposes: long-stay visa, digital nomads and extension of the right of residence (in Romanian). General Inspectorate for Immigration of Romania (IGI). Official page. Checked October 8, 2026.
30. Long-stay visa for family reunification. General Inspectorate for Immigration of Romania (IGI). Official page. Checked October 8, 2026.
31. Euro foreign exchange reference rates (USD, September 24, 2026). European Central Bank. Official page. Checked October 7, 2026.
32. Foreign consular office contact information: Romania, with the U.S. states each Romanian office covers (page undated). U.S. Department of State. Official page. Checked October 8, 2026.
33. Getting a Romanian residence permit. U.S. Embassy in Bucharest. Official page. Checked October 8, 2026.
34. Conditions for extending the right of temporary residence (in Romanian). General Inspectorate for Immigration of Romania (IGI). Official page. Checked October 8, 2026.
35. Single permit and EU Blue Card: documents and fees. General Inspectorate for Immigration of Romania (IGI). Official page. Checked October 8, 2026.
36. Directive 2014/92/EU on payment accounts (basic payment account). EUR-Lex. Official page. Checked October 7, 2026.
37. Fiscal Procedure Code (Law 207/2015), article 82, consolidated to 2016 (in Romanian). National Agency for Fiscal Administration of Romania (ANAF). Official page. Checked October 8, 2026.
38. Law 95/2006 on health reform, consolidated to August 18, 2025 (in Romanian). National Agency for Medicines and Medical Devices of Romania (copy of the Law). Official page. Checked October 8, 2026.
39. HICP, Romania: actual rentals paid by tenants for main residence, annual rate of change (dataset prc_hicp_minr). Eurostat. Official page. Checked October 8, 2026.
40. Annual net earnings, Romania, single person without children at 100% of the average wage, 2025 (dataset earn_nt_net). Eurostat. Official page. Checked October 8, 2026.
41. HICP, Romania: electricity, annual rate of change (dataset prc_hicp_minr). Eurostat. Official page. Checked October 8, 2026.
42. Press release: regulated gas distribution tariffs from July 1, 2026 (in Romanian). National Energy Regulatory Authority of Romania (ANRE). Official page. Checked October 8, 2026.
43. Fares (in Romanian). STB, Bucharest public transport company. Official page. Checked October 8, 2026.
44. Urban and metropolitan fares (in Romanian). RATBV, Brasov public transport company. Official page. Checked October 8, 2026.
45. Tickets and passes (in Romanian). STPT, Timisoara public transport company. Official page. Checked October 8, 2026.
46. Ticket fares (in Romanian). CTP Iasi, Iasi public transport company. Official page. Checked October 8, 2026.
47. Fares (in Romanian). Tursib, Sibiu public transport company. Official page. Checked October 8, 2026.
48. Fares (in Romanian). CT Bus, Constanta public transport company. Official page. Checked October 8, 2026.
49. Tickets and passes, figures stated as valid on May 10, 2023 (in Romanian). CTP Cluj-Napoca, Cluj-Napoca public transport company. Official page. Checked October 8, 2026.
50. Medical assistance. U.S. Embassy in Bucharest. Official page. Checked October 8, 2026.
51. Regulation (EU) 1231/2010 extending social security coordination to third-country nationals. EUR-Lex. Official page. Checked October 8, 2026.
52. Unplanned healthcare: temporary stays (page last checked September 16, 2026). Your Europe, European Union. Official page. Checked October 8, 2026.
53. Travel outside the U.S. Medicare.gov. Official page. Checked October 7, 2026.
54. Medicare coverage outside the United States (Product 11037, April 2026). Medicare.gov. Official page. Checked October 7, 2026.
55. Avoid late enrollment penalties. Medicare.gov. Official page. Checked October 7, 2026.
56. U.S. citizens and resident aliens abroad. Internal Revenue Service. Official page. Checked October 7, 2026.
57. Romania: tax treaty documents. Internal Revenue Service. Official page. Checked October 8, 2026.
58. Agreement on social security between the United States and Romania (text). Social Security Administration. Official page. Checked October 8, 2026.
59. Figuring the foreign earned income exclusion. Internal Revenue Service. Official page. Checked October 7, 2026.
60. Foreign earned income exclusion: what is foreign earned income. Internal Revenue Service. Official page. Checked October 7, 2026.
61. Foreign tax credit. Internal Revenue Service. Official page. Checked October 7, 2026.
62. Report of Foreign Bank and Financial Accounts (FBAR). FinCEN, U.S. Treasury. Official page. Checked October 7, 2026.
63. Do I need to file Form 8938? Internal Revenue Service. Official page. Checked October 7, 2026.
64. Civil Code, republished 2011 text (in Romanian). Arges County Council (copy of the Civil Code). Official page. Checked October 8, 2026.
65. House price index, Romania: annual rate of change by quarter (dataset prc_hpi_q). Eurostat. Official page. Checked October 8, 2026.
66. House price index, Romania: change on the previous quarter (dataset prc_hpi_q). Eurostat. Official page. Checked October 8, 2026.
67. Press release: first final results of the 2021 Population and Housing Census (in Romanian). National Institute of Statistics of Romania (INS), 2021 Census. Official page. Checked October 8, 2026.
68. Table 1.3.2: resident population by county, municipality, town and commune on December 1, 2021 (spreadsheet; in Romanian). National Institute of Statistics of Romania (INS), 2021 Census. Official page. Checked October 8, 2026.
69. Multiannual climate description: January, 1961-2025 (in Romanian). National Meteorological Administration of Romania (ANM). Official page. Checked October 8, 2026.
70. Multiannual climate description: July, 1961-2024 (in Romanian). National Meteorological Administration of Romania (ANM). Official page. Checked October 8, 2026.
71. U.S. Embassy in Romania: address. U.S. Embassy in Bucharest. Official page. Checked October 8, 2026.
72. Monthly climate description: January 2026 (in Romanian). National Meteorological Administration of Romania (ANM). Official page. Checked October 8, 2026.
73. Monthly climate description: July 2026 (in Romanian). National Meteorological Administration of Romania (ANM). Official page. Checked October 8, 2026.
74. Annual climate description: 2025 (in Romanian). National Meteorological Administration of Romania (ANM). Official page. Checked October 8, 2026.
75. Driving in Romania. U.S. Embassy in Bucharest. Official page. Checked October 8, 2026.
76. Commission Implementing Regulation (EU) 2026/636: Annex II list of countries (United States of America). EUR-Lex. Official page. Checked October 7, 2026.
77. Council Regulation (EC) 1186/2009: relief from customs duty (personal property). EUR-Lex. Official page. Checked October 7, 2026.
78. Customs information. U.S. Embassy in Bucharest. Official page. Checked October 8, 2026.
79. Romania: overview of the education system. Eurydice, European Commission (EACEA). Official page. Checked October 8, 2026.
80. U.S. citizen services. U.S. Embassy in Bucharest. Official page. Checked October 8, 2026.
81. U.S. citizen services contact information. U.S. Embassy in Bucharest. Official page. Checked October 8, 2026.
82. Entry/Exit System fully operational from 10 April 2026: who is exempt. European Commission, Migration and Home Affairs. Official page. Checked October 7, 2026.
83. ETIAS, the EU travel authorization for visa-free visitors. European Commission, Migration and Home Affairs. Official page. Checked October 8, 2026.
84. Commission Delegated Regulation (EU) 2025/1411: ETIAS fee of €20. EUR-Lex. Official page. Checked October 7, 2026.
85. Regulation (EU) 2018/1240 establishing ETIAS. EUR-Lex. Official page. Checked October 7, 2026.