Romanian freelancers have a word for the structure that most of them start with: PFA. It stands for persoană fizică autorizată, an authorised natural person, and it lets you invoice clients in your own name with a registration at the trade register, no capital and a simple tax regime. For a European who wants to work for themselves, the Romania PFA is the usual entry point. It is simple to open, but the tax and contribution arithmetic deserves attention, because there are thresholds that change what you owe. This guide sets out the rules for 2026 as ANAF describes them.
What is a Romania PFA and what are the alternatives?
Three forms of self-employment exist. The PFA is you, working alone or, according to EURES, with up to three employees. The întreprindere individuală (II) is an individual enterprise, and the întreprindere familială (IF) a family enterprise. EURES adds that all three need a domicile in Romania.
A company, the SRL, is a separate topic: a new one needs a minimum capital of 500 lei since 18 December 2025, and it brings full accounting and a 16% tax on dividends. A small SRL can opt for the micro-enterprise tax of 1% of revenue, with conditions such as revenue up to €100,000 and at least one employee, so ask an accountant before choosing that route.
Before registering, sort out your residence. The route is in residence in Romania for EU citizens, where a self-employed person brings a certificate from the trade register.
How do you register a Romania PFA?
- Get your registration certificate and CNP from the IGI. See the Romania CNP number guide.
- Choose your form (PFA, II or IF) and your activity code (CAEN). The application includes documents proving your training or experience for the activity.
- Register at the ONRC, online at myportal.onrc.ro or with the paper form. Since 15 October 2026, the ONRC no longer takes payments at its counters: pay through the portal, a payment kiosk, a postal order, online or by bank transfer.
- Prove your professional address, which is often your home.
- Choose how income is calculated (see below) and decide about VAT.
Choosing between a PFA, a company and a salary is a question of your income, your clients and how long you plan to stay. Moovy, our AI assistant, can lay out the questions to ask an accountant, and the obligations that follow each option. It does not file returns for you.
How is a Romania PFA's income taxed?
Two systems exist.
- Real system: net income is your receipts minus deductible expenses. It is compulsory for liberal professions, and you keep a register of income and expenses in single-entry bookkeeping.
- Income norm (normă de venit): a flat annual income for activities on a list drawn up by the Ministry of Finance, set according to the place where you work. It does not apply to liberal professions. If your gross income in a year exceeds the equivalent of €25,000, you must switch to the real system from the following year.
Income tax is 10% in 2026. According to ANAF's guidance for the return, the taxable base is your annual net income less the CAS and CASS you owe. In the real system, a tax loss can be carried forward over the next five years, within 70% of the net annual income from the same source.
What do the CAS and CASS cost?
Contributions use multiples of the minimum gross wage in force on 1 January of the income year. For 2026 income, ANAF uses 4,050 lei, even though the wage rose to 4,325 lei on 1 July 2026, according to EURES. That gives these thresholds:
| Threshold | Amount for 2026 income |
|---|---|
| 6 minimum wages | 24,300 lei |
| 12 minimum wages | 48,600 lei |
| 24 minimum wages | 97,200 lei |
| 72 minimum wages (CASS ceiling) | 291,600 lei |
- CASS (health), 10%. Charged on net income, capped at 72 minimum wages in 2026 (the ceiling was 60 for 2025). If you have a loss or zero income, you owe nothing, but you can pay voluntarily. If your net income is positive but under 6 minimum wages, you still pay on a base of 6, which means 2,430 lei of CASS, unless you also have a salary, pension or other income already carrying CASS.
- CAS (pension), 25%. Compulsory when your annual net income reaches 12 minimum wages. The base is at least 12 minimum wages if your income is between 12 and 24, and at least 24 if it is above. Below 12, it is optional.
Your own total depends on your expenses, a salary elsewhere and your option to pay CAS on a higher base, so ask an accountant to run your figures.
When do you declare and pay?
You file the Declarația unică (form 212) in ANAF's online space, the SPV, by 25 May of the following year, and pay the balance by the same date. It covers the income and contributions of the past year; a separate chapter only serves to opt into paying CASS for the current year. For income earned in 2025, a 3% reduction on the income tax applied to returns filed and paid by 15 April 2026. The reduction for 2026 income is set by the annual budget law and is not known yet.
When does VAT start?
You are exempt from VAT while annual turnover stays under 395,000 lei in 2026. Above it, you register at the latest on the date you exceed it, and charge VAT at 21% in general and 11% for some goods and services. Watch your cumulative turnover during the year, because exceeding the threshold without registering is a classic error.
How does a Romania PFA compare with a salary?
A salary is simple: your employer withholds everything, and you have nothing to file for that income. A PFA is more flexible and more demanding. You invoice clients, keep a register of income and expenses, and file once a year, but you also pay your own CAS and CASS, which for an employee are withheld by the employer from the gross salary. The 10% tax rate is the same, but the base differs.
If you are paid by foreign clients and live in Romania, the PFA is the natural way to make that income legal and visible. If a foreign employer pays you a salary, you remain an employee, with the monthly declaration duty described in income tax in Romania for new residents.
What mistakes do new freelancers make?
- Forgetting the CAS once income reaches 12 minimum wages.
- Choosing the income norm for a liberal profession, which is not allowed.
- Paying at the ONRC counter, which no longer works.
- Ignoring A1 certificates. If you stay insured in another country through an A1, Romanian CAS and CASS may not be due; have this checked.
- Mixing up the minimum wage figures. The July 2026 increase does not change the 2026 thresholds above.
The rules on deductible expenses and losses are detailed, and a good accountant often costs less than a mistake. Before you register, have your choice of form, income system and VAT status confirmed by a Romanian accountant (expert contabil) or tax adviser.
Where to go next?
Read income tax in Romania for new residents for the full tax picture and working in Romania if you compare freelancing with a salary. Thresholds are revised yearly; confirm them with ANAF.