Oleksandr wrote to us on WhatsApp last week. Ukrainian sole trader (FOP) on the simplified tax system (Group 3, 5% turnover tax), works remotely as an IT developer, has been living in Bucharest for 2 years under temporary protection. He pays his taxes in Ukraine, all clean. He is now planning to buy an apartment for €285,000. Three days ago he read in a Telegram chat that ANAF could show up retroactively and reassess his taxes for the past 2 years. He has not slept properly since. The question he asked me: "Am I already a Romanian tax resident under the law, or not? And if I am, what do I do?" The answer is longer. If you are in a similar situation (sole trader or freelancer from Ukraine, Moldova, Russia, Belarus, or anywhere else, living in Romania for more than 183 days), this article is for you.
What Romanian law actually says
Romanian tax residency for individuals is governed by Codul fiscal, Article 7, point 28. The law treats you as a tax resident if you meet at least one of four conditions: domiciliu in Romania, center of vital interests in Romania, 183+ days of physical presence in any 12 months, or Romanian citizen working abroad as a public servant.
Oleksandr meets points 2 and 3 since over a year ago. By the letter of the law, he is already a Romanian tax resident. OPANAF 1099/2016 required him to file the Chestionar pentru stabilirea rezidenței fiscale within 30 days after day 183. He never did.
How it actually works in practice
Romanian tax law operates on a declarative principle. ANAF does not have you in their system as a resident until you yourself file the chestionar. The reasons: no automatic data exchange between Inspectoratul General pentru Imigrări and ANAF, banks open temporary protection accounts as non-resident, and ANAF does not actively chase people under temporary protection. It is a politically sensitive topic.
First-level conclusion: if you do nothing and just live, most likely no one comes after you. But "most likely" is not "guaranteed".
4 triggers that change everything
This calm picture falls apart the moment you do one of these four things.
1. Buying real estate in your name
The notary reports the transaction to ANAF within 30 days via Declarația 208. Cartea Funciară registration also feeds the central database. A €285,000 purchase = ANAF gets your CNP/passport, amount, address. The source-of-funds question follows.
2. Large incoming international transfers
Romanian banks must report inbound foreign transfers above thresholds (previously €15,000, now lowered under DAC8). A €200,000 transfer from Ukraine = automatic flag to ANAF. If that money then goes into property, two triggers compound.
3. Registering an SRL or PFA in your name
When you register a company at ONRC, you implicitly declare Romania as your economic activity location. ANAF can ask for returns for the past 5 years (statute of limitations).
4. Applying for long-term residency or citizenship outside temporary protection
Permis de ședere pe termen lung (after 5 years) or naturalization = permanent resident status. After that, ANAF can retroactively raise the question for all your years living in Romania.
Why the Ukraine-Romania tax treaty does not save you
The two countries have a Double Taxation Avoidance Agreement since 1996. But the Ukrainian FOP single tax does not qualify as an income tax under the treaty. ANAF is not obliged to credit it.
What that means in practice if ANAF recognize you as a resident:
What you have in Ukraine | What it becomes in Romania |
|---|---|
5% FOP single tax on €4,800/mo = €240/mo | 10% impozit pe venit = €480/mo |
ESV 22% (min.) = ~€50/mo | 25% CAS = €1,200/mo |
(none) | 10% CASS = €480/mo |
Total: ~€290/mo | Total: ~€2,160/mo |
A 7x difference. Plus late penalties at 0.02%/day. Over 2 years retroactively at €4,800/month, that is roughly €45,000 extra plus penalties.
What to actually do
Path 1: Do nothing and avoid triggers
The simplest, if you do not plan a purchase, business, or status change. Downside: limbo. Fits if you see Romania as "temporary".
Path 2: Become a fiscal resident now, without retroactive exposure
You file the chestionar pentru stabilirea rezidenței fiscale declaring the current date as the start of residency. ANAF can issue a decision without retroactive audit. Downside: your Ukrainian FOP income theoretically becomes taxable in Romania via Declarația Unică. No longer 5%, but full tax.
Path 3: Register an SRL in Romania
The cleanest path for IT/freelance. You register a microîntreprindere, move clients over.
Tax rates in 2026 for IT (micro):
1% impozit pe venit on turnover (up to €250,000, min 1 employee)
10% impozit pe dividende
Mandatory minimum salary (~4,000 lei gross), payroll taxes €280-320/mo
On €4,800/mo (€57,600/year): roughly €11,500-12,000 in taxes/year (~21% effective). More expensive than Ukraine, but 4x cheaper than the 35% full tax of a Romanian resident individual.
Concrete steps if you decide to act
Real consultation with a contabil/consultant fiscal (€100-200)
Income certificate from Ukraine for the past 2-3 years (Form 1ДФ)
Chestionar pentru rezidența fiscală at ANAF, or SRL registration at ONRC
Romanian company bank account
Gradual client base transfer
Declarația Unică by 25 May of the following year
What not to do
Do not buy property before sorting out your status. The transaction triggers ANAF.
Do not register business or assets through your spouse/relatives as a workaround. It qualifies as tax avoidance.
Do not trust Telegram chats saying "nobody ever shows up". Since 2025 the rhetoric has shifted.
The real risk, without panic
Probability of ANAF coming after you without a trigger in the next 12 months: ~2-5%. With a trigger: 50-80%. For Oleksandr the realistic path is Path 3 (SRL), register now, move clients over 2-3 months, and complete the property purchase via the Romanian company.
At Fintaxy we work daily with sole traders and freelancers from Ukraine, Moldova, Russia, and Belarus. We speak Russian, Romanian, and English. First consultation: 30 minutes. Write at fintaxy.com.
This article is for informational purposes only and does not constitute individual tax advice. Romanian tax legislation changes frequently (the latest major changes under DAC8 came into force in 2025). Consult a licensed consultant fiscal or CECCAR-certified accountant for your specific case.