Managing banking, money and taxes in Romania is a relatively straightforward process. There are a number of options when it comes to managing expat finances in Romania, with both local and international banks operating in the country.
Currency in Romania
The Romanian Leu (RON) is the national currency, subdivided into 100 bani. The country will switch to the euro sometime within the next few years, though the exact timeframe is unclear.
The Romanian currency is available in the following denominations:
-
Banknotes: 1 RON, 5 RON, 10 RON, 20 RON, 50 RON, 100 RON, 200 RON and 500 RON
-
Coins: 1 ban, 5 bani, 10 bani and 50 bani
Banking in Romania
Banking in Romania is relatively easy. Expats will find all the services they are familiar with, such as internet banking.
To open a bank account, expats will need their passport, proof of residency, previous bank statements and an initial deposit. Sometimes copies of an employment contract or salary slip are also needed. Requirements may differ between banks.
Some of the more popular banks in Romania include Banca Transilvania, Alpha Bank, BRD and Citibank.
Banking hours are usually from 9am to 1pm, Monday to Friday.
ATMs and credit cards
ATMs (bancomat) are widely available in larger cities, especially at bank branches and shopping centres. They are scarcer in rural areas and villages, though.
Stores in larger cities accept major international credit cards. Romania is largely a cash-based society, and some shops in smaller towns and villages are unlikely to accept cards, as credit fraud in Romania is an unfortunate reality. Expats should take appropriate precautions to avoid being scammed.
Taxes in Romania
The tax system in Romania is a great incentive for expats wanting to move to Eastern Europe. Romania has a flat personal income tax rate of 10 percent.
For tax purposes, an individual is considered a resident if they reside in Romania for at least 183 days within a 12-month period. Romanian residents and companies are required to pay taxes on their global income as well as their income within Romania. On the other hand, non-residents are taxed only on their income derived from within Romania.
Romania has double-tax avoidance agreements in place with several countries, so it's worthwhile for expats to check with a local tax office to see whether their home country has such an agreement in place with Romania.