Is It Hard to Get a Digital Nomad Visa? A Retrospective 1 year after the Introduction of the Digital Nomad Visa in Romania
If you read the articles on our blog, you may remember that last year we discussed the entry into force of the legislative changes that introduced the digital nomad visa in Romania.
Now that it's already been a year, we felt the need to do an update: what's happened since then, how was the digital nomad implemented, how well it's working, how hard it is to get it and how well the news has been received by the community of digital nomads.
Although at first, the information was enthusiastically received by the international community, over time, it turned out to be a rather ineffective and inconvenient procedure to follow. That's because one essential thing has been forgotten - digital nomads like to work...digitally.
And running after papers is not one of their favourite activities.
In practice, the happenings are among the most hilarious. From the authorities, not knowing yet how this visa works to the interpretation of the notion of a company (only a limited liability one or a solopreneur as well?) or our attempts to explain to people who work mainly online why they need to go physically to the Romanian consulate to request a visa …digital nomad.
Among the biggest advantages are income tax exemptions for the period of 6 months (183 days) while the digital nomad is in Romania. If, until recently, these rules were also interpretable, finally, things will be clarified 👇 (the amendment has not yet entered into force but already has the form for promulgation).
Digital Nomads will be exempt from paying income tax for income from outside Romania for stays that do not exceed 183 days (during 12 consecutive months);
For the same period, they will also be exempt from paying social contributions (health and pensions) in Romania;
Digital nomads will not be considered tax residents unless their stay exceeds 183 days. All this comes after, although freelancers and nomads enjoyed visas for Romania, their tax regime was unclear. So we can say that things are starting to take shape.
What is a digital nomad in the law’s eyes?
Article 2 of Law 22 of 2022 defines the digital nomad as "the foreigner who is employed with a work contract at a company registered outside Romania and who provides services using information and communication technology or who owns a company registered outside Romania, in which he provides services through the use of information and communication technology and can carry out the activity of an employee or the activity within the company, remotely, through the use of information and communication technology".
In free translation 🙂: any person who does not have Romanian citizenship, is employed or owns a company outside Romania and can carry out his activity remotely, with the help of technology and the Internet.
—
The content of this article was developed by Legally Remote and has a strictly informative and general purpose, the information contained does not constitute legal advice.
If you need legal assistance for your business at the beginning of the journey, schedule a consultation call. Together with my team, I help you get rid of the stress of documents and give you time to deal with the important things for your business.