More than 183 days in Romania within 12 consecutive months makes you a tax resident, from the day of arrival.
Within 30 days of reaching 183 days of presence, you file with ANAF a questionnaire establishing tax residency on arrival in Romania.
In Israel: 183 days in a year, or 30 days in a year and 425 days over three years, create a presumption that your centre of life is in Israel. It can be rebutted.
Article 4(2) of the treaty settles dual residency: permanent home, centre of interests, habitual abode, nationality.
Under section 100A, the assets of someone who ceases to be an Israeli resident are deemed sold the day before. Payment can be deferred until the sale.
Tax residency in Romania: the short answer
Under the Romanian Fiscal Code, you are a tax resident in Romania if you have a permanent domicile there (domiciliu), if your centre of vital interests is there, or if you were present there for more than 183 days within 12 consecutive months. In Israel, residency is determined by centre of life, with presumptions based on days of presence. When you are resident in both countries, the tax treaty decides: permanent home, centre of vital interests, habitual abode and nationality, in that order.
Families moving to Bucharest ask me "when does it happen?", as if there were one day on which you switch residency. In practice there is no such button. There are tests in each country, and forms you file on time.
How Romania determines tax residency
The rules are in Article 7 of the Fiscal Code (Codul fiscal, Law 227/2015). According to the explanatory material of the Romanian tax authority ANAF and PwC, an individual is a tax resident in Romania if any one of these applies:
- They have a domicile (domiciliu) in Romania.
- Their centre of vital interests is in Romania.
- They are present in Romania for more than 183 days in total, within any period of 12 consecutive months ending in the calendar year.
- They are a Romanian citizen working abroad as an employee of the Romanian state.
ANAF also looks at additional indicators, but only together with the main tests: a car registered in Romania, a Romanian driving licence, and social and health insurance in the Romanian system.
According to PwC, someone who passes the 183-day test becomes resident from the day of arrival, and someone who has moved their centre of interests to Romania becomes resident on the basis of a declaration.
What it means in money
A tax resident in Romania is taxed on worldwide income, and according to PwC the income tax rate is generally a flat 10%, with exceptions for dividends, capital gains and property transfers. A non-resident is taxed in Romania only on Romanian-source income, such as rent from the villa.
The Romanian form: 30 days after 183 days
According to ANAF, anyone who arrives in Romania and stays more than 183 days within 12 months must file a "questionnaire for establishing the tax residency of an individual on arrival in Romania" (Chestionar pentru stabilirea rezidenței fiscale a persoanei fizice la sosirea în România), within 30 days of the day the 183 days of presence are reached.
The questionnaire is filed with, among other things, a passport, a Romanian residence document, a document proving accommodation in Romania (owned or rented) and, where needed, a tax residency certificate from the foreign country, in certified translation. ANAF notifies you within 30 days whether you are fully taxable in Romania or only on Romanian income. On departure there is a parallel questionnaire, filed 30 days before leaving.
How Israel determines residency
Section 1 of the Income Tax Ordinance (in Hebrew) defines an Israeli resident as someone whose "centre of life is in Israel", based on all their ties: permanent home, where they and their family live, place of work, economic interests and activity in organisations.
Alongside this there are two presumptions:
A villa in Romania is a permanent home. An apartment in Tel Aviv kept available for you is also a permanent home. Then everything moves to the centre-of-interests test.
- 183 days or more in Israel in the tax year.
- 30 days or more in the tax year, and 425 days or more in total in the tax year and the two years before it.
The presumptions can be rebutted, both by you and by the assessing officer. Anyone claiming not to be an Israeli resident attaches a residency declaration, form 1348, to the annual return; it appears in the Israel Tax Authority's list of forms (in Hebrew).
The two tests side by side
| Topic | Romania | Israel |
|---|---|---|
| Substantive test | Domicile or centre of vital interests | Centre of life, based on all ties |
| Day test | More than 183 days within 12 consecutive months | Presumption: 183 days in a year, or 30 days and 425 over three years |
| Can it be rebutted | ANAF examines it under the treaty and the documents | The presumption can be rebutted |
| Form | Arrival questionnaire, within 30 days of the 183 days | Residency declaration, form 1348 |
| Scope of tax for a resident | Worldwide income, generally 10% | Worldwide income, by brackets |
When you are resident in both countries: what the treaty says
This is the common situation in the first year: more than 183 days in Bucharest, but still an apartment, work or children in Israel. Article 4(2) of the Romania–Israel tax treaty sets the order of the tie-breaker:
- Permanent home available. You are resident in the country where you have a permanent home.
- Centre of vital interests. If you have a home in both, the country with which your personal and economic ties are closer.
- Habitual abode. If that cannot be decided, the country where you usually live.
- Nationality. And if that does not decide it either, the authorities of the two countries decide by mutual agreement.
A villa in Romania is a permanent home. An apartment in Tel Aviv kept available for you is also a permanent home. Then everything moves to the centre-of-interests test. ANAF itself writes that someone who keeps their main home in the country where they mainly lived and worked, and where their family and assets are, can show that their centre of interests remained there and not in Romania. For the other articles of the treaty, see our guide to the Israel–Romania tax treaty.
What happens in Israel on the day you stop being resident
Three things worth knowing before you decide:
- Exit tax. Under section 100A of the Ordinance (in Hebrew), an asset of someone who ceases to be an Israeli resident is deemed sold on the day before residency ends. You can defer payment of the tax until actual realisation, but the liability is created.
- Real estate taxation. As non-residents, the "single home" benefits for purchase tax and capital gains tax change, and even the villa in Romania may be counted. I explained this in our article on the single home and property in Romania.
- National Insurance. Israel's National Insurance Institute has its own residency test, separate from income tax. See our article on National Insurance for those living in Romania.
And tax residency is not a residence permit. As Israelis, you need legal status in Romania separately, as I described in our article on a residence permit in Romania.
Frequently asked questions
After how many days in Romania do you become a tax resident?
Under the Romanian Fiscal Code, after more than 183 days within 12 consecutive months. But you can become resident earlier, if your domicile or centre of vital interests is in Romania. Where there is dual residency, the treaty decides.
Does buying a villa in Romania make me a Romanian tax resident?
Not on its own. A villa is a permanent home available to you, which is the first consideration in the treaty, but if you also have a permanent home in Israel, the decision moves to the centre of interests: family, work, assets and ties. Someone who lives and works in Israel and visits the villa usually remains an Israeli resident.
What do I need to file in Romania when I move there?
The questionnaire for establishing tax residency on arrival in Romania, within 30 days of the day you reach 183 days of presence. You attach a passport, a residence document, proof of accommodation and, if you want to remain an Israeli resident under the treaty, an Israeli tax residency certificate in certified translation.
Can I be resident in Israel and in Romania in the same year?
Under the domestic law of each country, yes. The treaty determines which country has the primary taxing right, following the order of tests: permanent home, centre of interests, habitual abode and nationality.
What is exit tax in Israel?
Under section 100A of the Ordinance, the assets of someone who ceases to be an Israeli resident are deemed sold on the day before residency ends. Payment can be deferred until the actual sale.
The bottom line
Tax residency is a question of facts, not of declaration. Days, home, family and work determine it, in both countries. Anyone planning a move should build the first year deliberately: when you arrive, what stays in Israel, and which forms you file on each side.
If you are considering moving to Bucharest and living in a villa, in our project in Balotești or anywhere else, book a 30-minute call with me. We will sketch the timeline of the move and prepare the questions for your cross-border tax adviser.
Moti Azulay, Compass Group Romania
Sources and data: ANAF: explanatory material on determining the tax residency of individuals, May 2024 · PwC Tax Summaries, Romania: Residence · PwC Tax Summaries, Romania: Taxes on personal income · Romania–Israel tax treaty, text on the ANAF website · Income Tax Ordinance, sections 1 and 100A, updated version (in Hebrew) · Israel Tax Authority: annual return forms, including form 1348 (in Hebrew) · Romanian legislation portal.
This article is for general information only and is not legal, tax or financial advice. Residency depends on the facts of each family, and each country examines it under its own law. Before moving, consult a tax adviser who knows both Israeli and Romanian law.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
