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Romania's ANAF to Check Foreign Income, Risking 70% Tax on Unexplained Funds
๐Ÿ‡ท๐Ÿ‡ด Romania /Economy & Trade

Romania's ANAF to Check Foreign Income, Risking 70% Tax on Unexplained Funds

From Adevฤƒrul · () Romanian

Translated from Romanian, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Context piece
  • Romania's tax authority, ANAF, will check income earned by citizens abroad.
  • Those who do not clarify their tax status risk a 70% tax on unexplained income.
  • The checks target individuals who earned income overseas but remain Romanian tax residents.

Romania's National Tax Administration Agency (ANAF) is preparing to scrutinize income earned by Romanians abroad, issuing notifications to individuals who may need to declare these earnings in Romania. Those who fail to regularize their fiscal situation and cannot justify the origin of their funds face a potential 70% tax on unexplained income, according to ProTV News.

For the 2025 fiscal year, 58,524 taxpayers declared total taxable income exceeding 5 billion lei (approximately 1 billion euros), with 77% of these earnings stemming from investments, ANAF data shows. The agency's checks primarily focus on individuals who earned income overseas but maintained their tax residency in Romania.

If they have income from stock market gains, if they have rented out some properties there, but have not established tax residency in that country, meaning they are still linked to Romania, then they must come and clarify this matter. If they do not do so, then, after the compliance notification, there will be an ex officio tax assessment.

โ€” Cornel GramaA tax specialist explaining the consequences for Romanians earning income abroad without changing their tax residency.

Tax specialists advise that Romanians who have established tax residency in another country and are taxed there typically do not owe additional taxes in Romania. However, if someone earns income from stock market gains or property rentals but has not established tax residency elsewhere, remaining linked to Romania's tax system, they must clarify their situation. Failure to do so, following a compliance notification, could result in an ex officio tax assessment.

The tax authority is also examining prizes won abroad that may require declaration. If the prize giver is not a Romanian company, the recipient must declare it independently through a unique declaration, according to Alex Anghel, co-founder of an accounting application. Romanian tax law stipulates that individuals who fail to declare income and cannot prove its origin during ANAF audits may face a 70% tax rate on unidentified income sources.

If the one offering the prize is not a Romanian company, then you have to declare it yourself through the unique declaration.

โ€” Alex AnghelA co-founder of an accounting application explaining declaration requirements for foreign prizes.
DistantNews Editorial

Originally published by Adevฤƒrul in Romanian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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