From the KPMG page on Romania1. Romania has a worldwide taxation system that means that they will tax on all your income no matter if you lived there or not.
2. As long as you are a tax resident in Romania, and you are for sure as you did not change that, you have to declare and pay tax there.
Worst case scenario: some of the financial institutions you used reported you to Romania, the tax authority will calculate the tax you owe, all the social security contributions, will add a huge % as an interest rate. If you have any bank accounts or properties in Romania they will seize them.
Unlikely, but possible and pretty easy, they can go after your bank accounts within the EU especially if they know where they are.
If you have accounts outside the EU the chances they will be able to seize them is 0.1% and if we are not talking of hundreds of thousands of euros they will not even bother.
Eventually all your debts will be prescribed and you will be good as new.
Best case scenario: Nobody reported you so the fiscal authority thinks you either work somewhere else and forgot to change your fiscal residency or you just do not work at all. If they do not see any financial movement on your accounts or if nobody reports you they can not do anything about it.
You may want for example to obtain a residence in Portugal, register as a non dom (NHR) tax resident so you will not pay tax on foreign sourced income for 10 years.
Once registered, with the Portuguese tax certificate you can cancel your Romanian tax residence.
As a freelancer with the NHR residency you might be taxed in Portugal but you are for example exempt to pay tax on foreign dividends. So you can easily open a company in a lower tax jurisdiction (but not a tax heaven because then Portugal will tax you), get the dividends from there and pay 0% in Portugal.
Good luck!
Exempt income includes the following (however certain conditions must be met):
employment income derived from non-Romanian employers in respect of work done outside Romania, unless this income is paid by or on behalf of a Romanian employer
You can do some crypto deals via OTC cash, its costly, but less that having to take flightslet's cook it down to the fact that if you have a s**t load of cash and you want to move out of your country you will have to take it out of your country in portions of max 10K euro at a time. Bad s**t if you have millions but that's if you want to be safe.
Please note the word "EMPLOYMENT". As a Romanian tax resident this means that you need a valid work contract abroad, you need to declare your income in Romania and if it comes from a low tax jurisdiction you will have to pay tax too. It does not apply for freelancers because they are not employed.From the KPMG page on Romania
1. Romania has a worldwide taxation system that means that they will tax on all your income no matter if you lived there or not.
2. As long as you are a tax resident in Romania, and you are for sure as you did not change that, you have to declare and pay tax there.
Personal taxation:
Basis – Resident individuals are taxed on their worldwide
income, irrespective of the type or source of income;
nonresidents are taxed only on Romania-source income.
Residence – An individual is resident in Romania if
he/she fulfills at least one of the following conditions:
his/her domicile is in Romania; his/her center of vital
interests is in Romania; he/she is present in Romania for
a period or periods that exceed, in the aggregate, 183
days during any consecutive 12-month period ending in
the relevant calendar year; or he/she is a Romanian
citizen who is serving abroad as an official or employee of
Romania.
The Romanian tax authorities determine an individual’s
tax residence using a specific procedure. All individuals
entering or leaving Romania for a period exceeding 183
days within 12 consecutive months must submit a
questionnaire along with supporting documents to the Romanian authorities.
Taxable income – All salaries and related income are
subject to tax. The taxable income of employees under an
employment contract is determined as the difference
between gross income from salaries (including salary-
related allowances and benefits in kind) and allowable
personal deductions, union dues paid, mandatory social
contributions payable at the level of the employee and
contributions to private pension/private health insurance
funds (including subscriptions to private medical services
paid directly by the employee). Contributions to each
fund are limited to EUR 400 per year.
Very true but the problem can most often be that these type of cases can be very expensive and sometimes impossible to prove depending on how "aware" you have been about your situation.1. Is most likely false,. Is that usually the actual facts matter, not the formal registration. If OP was actually out of the country and did not register as such, he was actually not tax resident. If he can prove he was outside the country, that's what matters in a court.
That would apply if he had paid tax somewhere else or at least been a tax resident which is not the case here.1. Is most likely false,. Is that usually the actual facts matter, not the formal registration. If OP was actually out of the country and did not register as such, he was actually not tax resident. If he can prove he was outside the country, that's what matters in a court.
I have a question...
From 1 to 10, how stupid it would be to go back to my home country, open a sole trader / company or simply file my Income taxes?
Won’t it trigger any red flags for the... decade I haven’t?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?