Are you looking to understand how cryptocurrency taxation in Romania works? Are you making money from investments in cryptocurrency and don’t know how to fulfil your tax reporting obligations?
Cryptocurrency has emerged as a significant player in the global financial market, and Romania is no exception. With the increasing popularity of digital currencies like Bitcoin, Ethereum, and others, understanding the tax implications becomes paramount for investors, traders, and enthusiasts within the country.
This article explains the rules of cryptocurrency taxation in Romania, offering insights into the legal framework, tax obligations, and tips for compliance.
Cryptocurrency taxation in Romania was clarified in the Romanian Tax Code (Law 227/2015) since the start of year 2019. More precisely, on 20 January 2019 certain amendments to the Tax Code entered into force, through Law 30/2019, which introduced specific provisions regarding cryptocurrency taxation in Romania.
Thus, since this date, revenues from virtual currency transactions are taxed as “income from other sources”, in accordance with Chapter X, Title IV of the Romanian Tax Code.
According to the applicable tax rules, cryptocurrency taxation applies only to the gains one earns from the sale of crypto.
More specifically, the gain is determined as the positive difference between the sale price and the purchase price of the cryptocurrency, which will also include the transaction costs, if any. In addition, a non-taxable threshold applies, as follows:
With regard to social contributions, the category of income from other sources is generally exempt from the social contribution base (CAS – contribution to the pension fund), but not from the healthcare contribution (CASS: 10%), as per the legislation currently applicable.
For year 2024 (for which the annual tax return filing deadline is 25 May 2025), the healthcare contribution (CASS: 10%) is only due if the taxpayer generates such income (or cumulated with other income such as dividend, capital gains, rental income, etc.) during the tax year that totals at least 6 gross minimum national salaries – i.e. for the tax year 2024 it stands at the amount of 19,800 lei.
In addition, the calculation base for this contribution is capped at 10% of the following 3 thresholds:
Thus, if the value of the annual taxable income reaches one of the three thresholds, the contribution will be calculated at that threshold (6, 12 or 24 minimum wages per economy).
Whenever the contribution is due, it must be calculated on a base capped at 6, 12 or 24 minimum wages, and not on the actual income derived. This means that, even if during 2024 someone derives income that far exceeds the threshold of 24 gross minimum wages, that person will pay the health insurance contribution (CASS) on the basis of 24 minimum wages and not on the actual income realized.
The taxable gain derived from cryptocurrency must be determined and reported by the taxpayer through the annual income tax return. The deadline for submitting the 2024 tax return is 25 May 2025. The income tax due must be calculated at the same rate as for any other types of income earned by individuals – i.e. 10% of the taxable income, and applying the above-mentioned non-taxable caps.
This clarification on taxation regime for the cryptocurrency income eliminated the ambiguities or interpretations of the existing legal provisions regarding the way of taxing these revenues. We also consider it an important step for authorities recognizing the existence of these types of virtual currency economic transactions.
According to some expert estimates, the total revenues from cryptocurrency transactions made by Romanian residents during 2023 should amount to more than EUR 100,000,000.
Therefore, the regulations introduced in the Romanian Tax Code are welcome, as they clarify the cryptocurrency taxation in Romania and the reporting regime for the income generated from the sale of cryptocurrency. They also eliminate any tax law interpretations that in the past have led to reporting of these revenues erroneously, under totally different categories.
We have been asked frequently by crypto investors whether selling one cryptocurrency in exchange for another (crypto-to-crypto trade) is taxable in Romania.
The answer is that such transaction is not taxable as per the Romanian tax legislation. One is only taxed when exchanging cryptocurrency for fiat currency (e.g., RON, EUR, USD) or when using cryptocurrency to directly purchase goods or services.
If you are a long-term crypto investor, as long as your transactions remain within the cryptocurrency space, without converting to fiat, you will not incur any tax obligations. However, it’s still important to keep detailed records of these transactions, as they may need to be reported in the future when you eventually sell for fiat or make purchases of services directly with crypto.
In Romania, crypto mining is also considered a taxable activity. Of course, the tax rules differ depending on whether the mining is conducted as an individual, or as part of a business operation.
For individuals mining cryptocurrency, the tax is levied when the mined cryptocurrency is sold or exchanged for fiat currency (such as RON, EUR, or USD). If the individual is not carrying out the mining activity as an economic activity (as authorized freelancer or as part of a company’s business, the income derived from the sale of mined crypto is treated as “income from other sources”, similar to the tax treatment described above.
So, miners as well must report their gains and pay the applicable 10% income tax rate on the income generated from selling mined coins. There may also be additional tax considerations for those mining as part of a business operation, depending on the scale and structure of their activities.
Founded in 2008 as TAX IQ, our company has gained extensive expertise over the years, allowing us to effectively utilize our experience to benefit our clients’ best interests. Over time, we have succeeded to build a solid reputation as trusted tax advisor for the entire community of Romanian expats.