Digital Nomad Visa in Romania vs. Residence Permit for Commercial Activities
Remote work was initially a necessity but quickly turned into a lifestyle, becoming a trend on a global scale.
Today we will talk about citizens of the United States of America and Canada, how they can enter Romania and what they need to know if they plan to stay here for a longer period of time. US and Canadian citizens can enter Romania only based on a valid passport without needing a visa.
Be careful though; without a visa, you will only be able to stay in Romania for a maximum of 90 days.
Therefore, if you are a US or Canadian citizen, you came to Romania and plan to stay here for a period longer than 90 days, you will need to obtain a residence permit.
In this article, we will see together what kind of residence permit you can get and which is the most suitable for you.
I. Rights for residence as a digital nomad
If you are a digital nomad and plan to carry out your activity while visiting picturesque places in Romania, hiking in the mountains or trying the local cuisine, you should know that Romania grants visas for digital nomads as early as 2022.
Of course, several conditions must be met, the most important being that you are an employee or a freelancer, and the company you work for or own is not registered in Romania (in addition, the company you own must be registered in another country for at least three years). The activity you carry out must be in the IT&C field.
Moreover, the income you obtain must also reach a certain ceiling,
at least three times the average gross monthly salary in Romania for each of the last six months before the date of submitting the visa application, as well as for the entire period registered in the visa (approximately 4000 Euro/month).
On the other hand, obtaining a visa is not conditional on the work schedule you choose: part-time or full-time, you decide.
The digital nomad visa is initially valid for six months and can be extended for another six months if you continue to meet all the above conditions.
More things to know:
• We asked Immigration Services how many rights for residence as a digital nomad have been granted since 2022. We received that the following non-EU citizens applied for and obtained a valid right of residence in Romania as digital nomads: 7 US citizens, 2 UK citizens and a citizen from Lebanon;
• Fees: 120 Euro consular fee, 55 Euro for the residence permit;
• After obtaining your first right to residence, if you want to bring your family to Romania, you will not be able to do so based on a digital nomad right, as a stay longer than six months in Romania is required;
• You are exempt from paying income tax during the first 183 days (6 months) of your stay in Romania; after this period, the tax regime in Romania will apply.
II. Residence permit for commercial activities
But what if you are not employed by a foreign company, nor do you own one, but you still want to come to Romania to work from here? There are solutions for this specific situation as well: the residence permit for commercial activities.
In addition, if you are a US or Canadian citizen coming to Romania, you should know that you are exempted from most of the conditions, and you do not need so many documents to obtain a residence permit or to extend it.
The first step is establishing a limited liability company in Romania, alone or with other persons or a joint stock company. Regardless of the company you choose to open, you must have the capacity of associate or shareholder in it with management or administration duties.
After registering the company, you must apply for a residence permit. As a US and Canadian citizen, you do not have to prove that you earn income to support yourself, are not subject to a minimum investment amount, and do not have to hire personnel. What's more, you don't need all the legal notices, which means you can get your residence permit much faster.
The residence permit for commercial activities is initially valid for 1 year and can be successively extended for periods of 1 year.
More things to know:
• Fees: 120 Euro consular fee, 55 Euro for the residence permit;
• After obtaining the visa for commercial activities, your family members can obtain a long-stay visa for the purpose of family reunification.
What you should remember:
• If you are a US or Canadian citizen, you do not need a visa to enter Romania;
• US and Canadian (also Swiss and Japanese) citizens who open their companies in Romania benefit from simplified, therefore faster procedures;
• to obtain the right of residence as a digital nomad in Romania, it doesn’t matter if you are an employee or a freelancer;
• the right of residence as a digital nomad must be renewed every six months; however, do not forget that you may lose certain tax benefits
LEGALLY REMOTE is a boutique law firm based in Bucharest, Romania, specializing in commercial, digital and technology law, and covering immigration matters, providing legal strategy and support to entrepreneurs and companies in the creative, media and technology industries.
In the cover picture, photo by Fabio Fistarol on Unsplash.