If you’re planning to buy real estate in Romania you will owe taxes to the Romanian state and, in order to pay them, you will need to get a tax identification number. That’s usually called TIN in English-speaking countries, but in Romania it’s called NIF, which means basically the same thing. The Romanian tax authority goes by the name of ANAF and, while not as scary as the IRS, they’ll still be wanting your taxes.
Who must obtain a NIF?
Romanian citizens do not have a NIF, as they use their personal numeric code (CNP) attributed at birth and mentioned on their ID, for tax purposes.
As far as foreign citizens are concerned there are two types of situations:
- If a foreign resident applies for and obtains a residence permit they do not need to also get a NIF. EU citizens who obtain a registration certificate and non-EU citizens who obtain a residence permit will automatically be granted a personal numeric code (CNP) which they can use for tax purposes, just like Romanian citizens do.
- All foreign citizens who do not actually live in Romania and do not require a residence permit, but generate income in the country will have to apply for a NIF.
What types of income are subjected to taxation?
For instance, if you buy and sell land or real estate property in Romania you will owe taxes to ANAF.
The same goes for buying and leasing property.
If you sell vehicles of any type in Romania you will also need to pay taxes.
Other types of income generated in Romania, such as company dividends or transfer of shares in local companies, are also subjected to taxation.
Keep in mind that local banks might refuse to open a bank account for you if you do not have a NIF.
How to obtain a NIF in Romania
To get your NIF you will have to deal with the Romanian tax authority – ANAF – so be prepared for some red-tape and long waiting times.
You can do this by designating a Romanian citizen or Romanian company as a proxy, with a notarized power of attorney.
If you have a proxy they will have to go to the ANAF office corresponding to their address. If your proxy lives in Bucharest, in District 1, they will have to go to the ANAF District 1 office, while a Cluj resident will go to the ANAF Cluj office.
What documents do you need to obtain a NIF?
First of all you will have to fill in the so-called Form 030, which you can find here in Romanian or in English. You can also get Form 030 in print form at the ANAF office.
You will also need to attach the following documents
- Passport of the foreign resident (in copy) and ID copy of your proxy.
- Power of attorney, in case you use a proxy
How long does it take to get a NIF?
Usually, that takes around 14 days, provided that your documents are in order and they don’t ask you for additional papers.
What happens if you don’t get a NIF?
If you don’t have a NIF you cannot buy any property and can’t legally pay taxes in Romania and that can have serious consequences if you get caught. You might be issued with a hefty fine on top of the taxes you already owe to ANAF.
At the same time, getting your NIF and paying the local taxes will help you avoid double taxation, so you don’t end up paying taxes both in Romania and your country of origin.
Contact us if you need help with obtaining a NIF.
