In the Official Gazette of Thursday, March 30, 2023, Law no. 69/2023 regarding the taxation regime of digital nomads, which clarifies the taxation of income from wages, they have certain tax benefits.

Law No. 22/2022, which changes the regime of foreigners in Romania, regulates the concept of “digital nomad”.

This is a natural person who works under an employment contract with an employer outside Romania or is the owner of a foreign company and carries out activities remotely with the help of information technologies and, in accordance with this law, is in the territory of Romania for a period of time.

The document contains three regulatory provisions, namely:

• 1. Digital nomads do not have the status of contributors to the state social insurance – pension system, if their stay on the territory of Romania does not exceed 183 days within 12 consecutive months;

• 2. From the point of view of social health insurance contributions, digital nomads do not have the status of taxpayers in the state social health insurance system, if their stay on the territory of Romania does not exceed 183 days in a consecutive 12-month period;

• 3. From the point of view of salary income tax, salary income collected by digital nomads is not subject to income tax in Romania, if the stay in the territory of Romania does not exceed 183 days in a period. 12 months in a row.

Finally, from a fiscal point of view, as long as digital nomads do not meet the condition of fiscal residence in Romania, they do not have to pay income tax on wages and social insurance on income received from abroad.

Even if it seems like a measure that at first glance reduces the revenues of the state budget, from the fact that digital nomads spend this money in Romania, the budget indirectly benefits.

Analysis by financial consultant Adrian Benza