Moving to Romania - Need Tax Advice

27 replies
I currently live and am a citizen of the USA where I grew up. However, I was born in Romania and moved to the US when I was 3. I now plan on moving back and living in Romanian where I will have duel citizenship with the USA.

For work I am a sole proprietor, affiliate marketing for CPAs. I get paid direct deposit into my US bank account.
Once I'm in Romania, how would I file for taxes since i'm still earning my revenue in the US but living in another country?

Would I be double taxed and also have to file for taxes to the Romanian government?

Does anyone have experience with anything similar to this or can point me to some resources where I can do more research on the subject?
#advice #moving #romania #tax
  • Profile picture of the author Jeff Lenney
    Originally Posted by BusinessPartner View Post

    I currently live and am a citizen of the USA where I grew up. However, I was born in Romania and moved to the US when I was 3. I now plan on moving back and living in Romanian where I will have duel citizenship with the USA.

    For work I am a sole proprietor, affiliate marketing for CPAs. I get paid direct deposit into my US bank account.
    Once I'm in Romania, how would I file for taxes since i'm still earning my revenue in the US but living in another country?

    Would I be double taxed and also have to file for taxes to the Romanian government?

    Does anyone have experience with anything similar to this or can point me to some resources where I can do more research on the subject?
    Hey let me go ahead and contact a Romanian Tax Attorney for you to see what they say.

    I'll be back in touch shortly!

    *Hint, Read Between the Lines*
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  • Profile picture of the author BusinessPartner
    Cool bro you're sarcastic and funny, give yourself a pat on the back.

    Anyways, if anyone has a similar situation and some experience with some knowledge they can share it would be appreciated.

    If you wana be the guy above, then no need since one of those types is enough and he wins the award at jumping the gun to be the first douche.
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    • Profile picture of the author Jeff Lenney
      Originally Posted by BusinessPartner View Post

      Cool bro you're sarcastic and funny, give yourself a pat on the back.

      Anyways, if anyone has a similar situation and some experience with some knowledge they can share it would be appreciated.

      If you wana be the guy above, then no need since one of those types is enough and he wins the award at jumping the gun to be the first douche.
      Perhaps you didn't read between the lines enough

      YOU'RE MOST LIKELY NOT GOING TO FIND A ROMANIAN TAX ATTORNEY ON THIS SITE. THEY WOULD BE THE ***BEST*** PERSON TO CONSULT ABOUT YOUR SITUATION.

      Hope this helps!
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      • Profile picture of the author BusinessPartner
        Originally Posted by eljeffe77 View Post

        Perhaps you didn't read between the lines enough

        YOU'RE MOST LIKELY NOT GOING TO FIND A ROMANIAN TAX ATTORNEY ON THIS SITE. THEY WOULD BE THE ***BEST*** PERSON TO CONSULT ABOUT YOUR SITUATION.

        Hope this helps!
        Dude, obviously I know and thought of contacting a tax specialist.

        You obviously don't understand the point of a forum and wanting to know and read about other peoples opinions, experiences and advice. Learning and being prepared is a step in the right direction, finding out what questions to ask an attorney before calling will help greatly.

        Kindly F*** Off with your CAPS reply and douche attitude.
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    • Profile picture of the author Alexa Smith
      Banned
      Originally Posted by BusinessPartner View Post

      If you wana be the guy above ...
      I did, but Jeff got in before me (and also said it a little more amusingly than I was going to, to be honest ) ...

      Originally Posted by BusinessPartner View Post

      no need since one of those types is enough
      Between you and me (and anyone else with the misfortune to be reading the thread), there are far more of "those types" here than Romanian tax attorneys with fluent English who just happened to be browsing ... but hey, that's true of every forum on the web, isn't it, apart from this one, where you so obviously intended to ask: Romania Expat Forum for Expatriates Moving Abroad | ExpatFocus.com


      .
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  • Profile picture of the author BusinessPartner
    Oh ok, so you and the guy above just troll around these forums looking for threads where people ask questions that you can come into and make sarcastic snidely remarks to get your post counts up.

    Since you both have a high amount of posts (which i'm assuming the majority are these type) you go around sticking up for each other.

    Congratulations you've managed to derail my post and my question. Give yourselves a pat on the back, you're having a very productive day. Clap clap for you two.
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    • Profile picture of the author Jeff Lenney
      Originally Posted by BusinessPartner View Post

      If you wana be the guy above, then no need since one of those types is enough and he wins the award at jumping the gun to be the first douche.
      Originally Posted by BusinessPartner View Post

      Kindly F*** Off with your CAPS reply and douche attitude.
      Originally Posted by BusinessPartner View Post

      Congratulations you've managed to derail my post and my question. Give yourselves a pat on the back, you're having a very productive day. Clap clap for you two.
      Clearly, I'm the one being the douche here...
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      Too lazy to write something clever here, so check out my marketing blog and learn from a REAL Super Affiliate at JeffLenney.com

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      • Profile picture of the author BusinessPartner
        Originally Posted by eljeffe77 View Post

        Clearly, I'm the one being the douche here...
        Calling out your douche behavior makes me the douche. LOL at that logic...
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    • Profile picture of the author Alexa Smith
      Banned
      Originally Posted by BusinessPartner View Post

      Congratulations you've managed to derail my post and my question.
      Don't look now, but I did provide a helpful link for you. That's a forum in which Romanian tax questions are discussed. In English. By Romanian accountants, among others. Short of my actually being a Romanian accountant, myself (which was rather a tall order, at such short notice), how much better could I really do than that?

      The Warrior Forum is a dreadful place to ask for, or to take, legal/tax advice. And if you hadn't realised that, then you learned something useful today, after all.

      http://www.warriorforum.com/main-int...al-advice.html

      No ... it was no trouble at all. Really. You're welcome.


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      • Profile picture of the author BusinessPartner
        Originally Posted by Alexa Smith View Post

        Don't look now, but I did provide a helpful link for you. That's a forum in which Romanian tax questions are discussed. In English. By Romanian accountants, among others. Short of my actually being a Romanian accountant, myself (which was rather a tall order, at such short notice), how much better could I really do than that?

        The Warrior Forum is a dreadful place to ask for, or to take, legal/tax advice. And if you hadn't realised that, then you learned something useful today, after all.

        http://www.warriorforum.com/main-int...al-advice.html

        No ... it was no trouble at all. Really. You're welcome.


        .

        You mean that forum where the last conversation on it was in 2013 and i've already read before you ever linked?

        You mean out of all the tens of thousands of members on this forum none are US citizens that do IM for a living and moved to Europe and could give me advice based on their experiences?

        What is the point in going in other peoples threads and shitting on them when you don't have a damn thing to contribute? To inflate your post count and build up your meaningless Warrior Forum ego.

        Wouldn't it make more sense to shut the hell up and not even reply, let someone who I am asking for advice from make a post, and if non exist, let it disappear out of existence.

        Congratulations though for real, you got another post to add to your 20k or whatever, keep it up, you'll be at 50k in no time.
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        • Profile picture of the author Alexa Smith
          Banned
          Originally Posted by BusinessPartner View Post

          You mean that forum where the last conversation on it was in 2013 and i've already read before you ever linked?
          A thousand apologies for not magically knowing that already. Really, I don't know what came over me: how could I possibly not have intuited that you'd already seen it? Damn, I really screwed up here: not only am I not a Romanian accountant - just when you need one - but I wasn't even psychic enough for you, and that's just inexcusable.

          Mea maxima culpa
          ...
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          • Profile picture of the author BusinessPartner
            Originally Posted by Alexa Smith View Post

            A thousand apologies for not magically knowing that already. Really, I don't know what came over me: how could I possibly not have intuited that you'd already seen it? Damn, I really screwed up here: not only am I not a Romanian accountant - just when you need one - but I wasn't even psychic enough for you, and that's just inexcusable.

            Mea maxima culpa
            ...
            That was just cringeworthy to read.

            This girl above and the other guy before her accomplished their goals and made this thread irrelevant. Anyways can a mod shut this down/lock it. I have a feeling they will keep coming back here to try and get the last word but I've said my piece about people like them and i'm done.

            Peace.
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      • Profile picture of the author Valdor Kiebach
        Never Mind, meh...
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  • Profile picture of the author kindsvater
    For work I am a sole proprietor, affiliate marketing for CPAs. I get paid direct deposit into my US bank account.
    Once I'm in Romania, how would I file for taxes since i'm still earning my revenue in the US but living in another country?
    You're making a few assumptions which are likely wrong. For starters, just because your bank account is in the US does not mean you are earning revenue in the US.

    Example: if you are sitting at home in Romania doing your websites, making sales, and but having funds deposited in a US bank, I would say you are making money in Romania.

    Wouldn't it be nice if we could do business online and avoid taxes by having payment deposited in a bank account in a different jurisdiction! It doesn't work that way.

    I would assume, but do not know, that Romania would want taxes paid on money earned by a citizen and someone physically within its borders. The US IRS, a bigger blood sucker that Romania vampires, always wants a cut. To get a definitive answer you need someone familiar with how Romania handles this situation, but I don't know anyone on this board with that expertise. But, maybe someone will pop up. I'm always surprised at how many attorneys lurk around here or do not disclose they have a legal background.

    .
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  • Profile picture of the author Joe Ray
    Originally Posted by BusinessPartner View Post

    I currently live and am a citizen of the USA where I grew up. However, I was born in Romania and moved to the US when I was 3. I now plan on moving back and living in Romanian where I will have duel citizenship with the USA.

    For work I am a sole proprietor, affiliate marketing for CPAs. I get paid direct deposit into my US bank account.
    Once I'm in Romania, how would I file for taxes since i'm still earning my revenue in the US but living in another country?

    Would I be double taxed and also have to file for taxes to the Romanian government?

    Does anyone have experience with anything similar to this or can point me to some resources where I can do more research on the subject?
    You are still in the US so you should call your US accountant and ask. When you arrive to Romania, you call a Romanian accountant there and ask. That's it.
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  • Profile picture of the author Lucian Lada
    BP, an hour of tax advisory with a Romanian accountant/lawyer is very cheap given that you're living and making money in the US. I would strongly recommend you contact one instead of relying on advice people give on public boards. Law and medical matters are the two things the average person knows mostly nothing about.

    Good luck.
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  • Profile picture of the author BusinessPartner
    Amazing and much appreciated posts from the last 3 members. Very good advice given and now I have much more of a foundation on the matter and what further questions to seek!

    Thanks

    +1 kindsvater
    +1 Joe Ray
    +1 Lucian Lada
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  • Profile picture of the author Matthew Trujillo
    You're best bet would be to go and find a tax specialist in Romania and ask for advice.

    None of us can give you exact answers on that subject unless we specialize in tax laws in your particular country.
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    • Profile picture of the author Jeff Lenney
      Originally Posted by Matthew J Trujillo View Post

      You're best bet would be to go and find a tax specialist in Romania and ask for advice.

      None of us can give you exact answers on that subject unless we specialize in tax laws in your particular country.
      Careful, you might get called a douchebag or an a**hole now...
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      Too lazy to write something clever here, so check out my marketing blog and learn from a REAL Super Affiliate at JeffLenney.com

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  • Profile picture of the author goneill
    Hi Business Partner,

    From my understanding I was under the impression that USA citizens were taxed on their total income,
    so that would cover your income from worldwide sources. There would be the possibly facility to offset the double taxation problem if the Romanian tax officials also taxed you on the Romanian income.
    (So you would need to check double taxation treaty with USA / Romania)

    It was reported sometime last year that European banks were refusing to take on USA Citizens due to the paperwork and rules of the USA IRS, it was also said that USA citizens were giving up their USA citizenship due to problems of the USA IRS.
    (Check advantage of giving up USA citizenship)

    You will have to decide which route to take which will depend on citizenship, beneficial tax regime and simplicity of tax paperwork. Also consider that you will come under EU rules on VAT.

    So as others have suggested it would pay to check both sides of the coin with Tax advisors both in Romania and USA.

    Good Luck and save as muck tax dollars as possible :-)
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    George ONeill

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    • Profile picture of the author BusinessPartner
      Originally Posted by goneill View Post

      Hi Business Partner,

      From my understanding I was under the impression that USA citizens were taxed on their total income,
      so that would cover your income from worldwide sources. There would be the possibly facility to offset the double taxation problem if the Romanian tax officials also taxed you on the Romanian income.
      (So you would need to check double taxation treaty with USA / Romania)

      It was reported sometime last year that European banks were refusing to take on USA Citizens due to the paperwork and rules of the USA IRS, it was also said that USA citizens were giving up their USA citizenship due to problems of the USA IRS.
      (Check advantage of giving up USA citizenship)

      You will have to decide which route to take which will depend on citizenship, beneficial tax regime and simplicity of tax paperwork. Also consider that you will come under EU rules on VAT.

      So as others have suggested it would pay to check both sides of the coin with Tax advisors both in Romania and USA.

      Good Luck and save as muck tax dollars as possible :-)
      Appreciate the advice. Renouncing my US citizenship is something I definitely won't be doing I still have family here and will be traveling back and forth.

      From the Research I've done, Romania allows a citizen to receive 2,500 euros a month that they don't have to declare. If I find there is a double taxation for working out of RO as a US citizen that 2.5k would be substantially enough for my cost of living while I used my US bank account to fund my business expenses.

      Things are looking good so far.
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      • Profile picture of the author Lucian Lada
        Originally Posted by BusinessPartner View Post

        From the Research I've done, Romania allows a citizen to receive 2,500 euros a month that they don't have to declare.
        I don't know where you found that information, but that's highly unlikely. The average income in Romania is around 400 euros and there are many businesses that don't make 2,500 euros profit per month, so I really don't think the government would offer such a high personal allowance.

        In the UK, for example, personal allowance is 10,000 GBP (source: https://www.gov.uk/income-tax-rates), which works out to around 13,000 Euros, which means a little over 1,000 Euros per month. And you can't even begin to compare the UK with Romania.
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        • Profile picture of the author BusinessPartner
          Originally Posted by Lucian Lada View Post

          I don't know where you found that information, but that's highly unlikely. The average income in Romania is around 400 euros and there are many businesses that don't make 2,500 euros profit per month, so I really don't think the government would offer such a high personal allowance.

          In the UK, for example, personal allowance is 10,000 GBP (source: https://www.gov.uk/income-tax-rates), which works out to around 13,000 Euros, which means a little over 1,000 Euros per month. And you can't even begin to compare the UK with Romania.
          I was told it by an associate who is living in Romania, to be more clear, he said money received, as in transferred to Romania from outside of the country, I am not sure if this is in the form of a donation or not. But yes, not wages earned in Romania.

          I know very many Romanian families have family members who work in other EU countries that send money home to Romania so it could very well be donations. I will defiantly have to research the matter more.
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  • Profile picture of the author boydstone
    Originally Posted by BusinessPartner View Post

    I currently live and am a citizen of the USA where I grew up. However, I was born in Romania and moved to the US when I was 3. I now plan on moving back and living in Romanian where I will have duel citizenship with the USA.

    For work I am a sole proprietor, affiliate marketing for CPAs. I get paid direct deposit into my US bank account.
    Once I'm in Romania, how would I file for taxes since i'm still earning my revenue in the US but living in another country?

    Would I be double taxed and also have to file for taxes to the Romanian government?

    Does anyone have experience with anything similar to this or can point me to some resources where I can do more research on the subject?
    OK I'll give you a straight answer to your question: I don't know.

    Hope that helped.
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  • Profile picture of the author QueenMelanie
    Don't really have any advice for you but just wanted to say I love it in Romania. Lived in Bulgaria for a bit and made constant trips over the border into Romania! You'll prob live like a king if you are bringing a USD $ income over there with you..
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  • Profile picture of the author kursat
    I have double nationality and moved to Turkey years ago. Had to hire an accountant and pay my taxes here. So I would assume you have to declare all that comes in to your bank account in the country you are currently a resident in.
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  • First I'm not tax law person so get one but I heard if you American's go to Mars and make a dime you have to file to your government and you are the only people to have this represive law from what I hear. I might be wrong. I know if German moves to Australia they file in Australia but not Americans so I think you have to file in Romania and your old country, but again i'm no pro I might be wrong. Good luck.
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    soon people... Relax...
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