Romania wants to apply income tax on foreigners' gains in the first year of residence

The Romanian Government plans to eliminate the three-year tax exemption period for foreigners. Foreign individuals who have an income in Romania will pay taxes on their income in the first year after getting residence in the country, according to a project of the Finance Ministry. Revenues gained by the foreign individual will be taxed the next calendar year after the foreigner received the Romanian residency, and will benefit by the same tax deduction rights as Romanians, the proposal goes on. According to the existing laws, foreigners who have residence in Romania have to pay tax on their income – gained from Romania and abroad – only in their fourth year of legal residence in the country. editor@romania-insider.com (photo source: Sxc.hu)