Becoming a PFA in Romania: ONRC registration, the RON 395,000 VAT threshold, and flat 10% tax
A Romanian freelancer registers a PFA with ONRC, then registers for tax with ANAF and self-assesses through the Declarația Unică. The VAT threshold rose to RON 395,000, income tax is a flat 10%, and CAS and CASS are owed on tiered bases keyed to the minimum wage.
This article is general information, not tax advice. Regulations change — verify the current rules with the official sources below before acting.
The most common way to freelance in Romania is a PFA (persoană fizică autorizată) — an authorised self-employed person — registered first with the Trade Register, then with the tax authority.
Registration and self-assessment
You register a PFA with ONRC (the Trade Register), then register for tax with ANAF. Each year you self-assess through the Declarația Unică (the single declaration), which reports both your income tax and your social contributions in one filing. That annual return is the pivot of a PFA's compliance calendar.
The RON 395,000 VAT threshold
You register for VAT when turnover exceeds RON 395,000 (about €80,000) — raised from RON 300,000 effective 1 September 2025. Below the line you may operate outside the VAT system; above it, registration is mandatory and you charge the standard VAT rate of 21%.
Income tax: flat 10%, two methods
Income tax is a flat 10%, charged under one of two methods. Sistem real applies 10% on actual net income — revenue minus deductible costs. Norma de venit applies 10% on a fixed activity income norm set by ANAF, a presumed figure regardless of your real result. The norm suits steady, low-cost activities; sistem real suits those with meaningful expenses.
Social contributions
CAS (pension) at 25% and CASS (health) at 10% are owed on tiered bases keyed to the minimum wage (RON 4,050 in 2026). For example, CAS is charged at 12 or 24 minimum wages depending on your income level, so contributions step up in bands rather than tracking income smoothly.
General information about registering a PFA in Romania, current as of the review date above, and not tax advice. Thresholds and rates change — confirm current figures with ANAF or a qualified accountant (contabil).
Frequently asked questions
When must a Romanian PFA register for VAT?
You register for VAT when turnover exceeds RON 395,000 (about €80,000), raised from RON 300,000 effective 1 September 2025. Below it you may operate outside the VAT system; above it, registration and charging at the 21% standard rate become mandatory. Confirm the current figure with ANAF.
How is a Romanian PFA's income taxed?
Income tax is a flat 10%, under one of two methods: sistem real charges 10% on actual net income, while norma de venit charges 10% on a fixed activity income norm set by ANAF. Social contributions CAS (25%) and CASS (10%) are owed separately on tiered bases keyed to the minimum wage.