Executive summary: On January 17, 2022, Romanian Law no. 22/2022 entered into force for amending and supplementing the Emergency Ordinance no. 194/2002 regarding the status of foreigners in Romania, a regulation that outlines the legal status of the concept of digital nomads in Romania.
This regulation represents a considerable legal novelty given the changes of work conditions in the context of pandemic. Pavel, Mărgărit and Associates Romanian Law Firm recommends addressing to a specialized lawyer in labor, tax law, immigration and citizenship who can proceed with all the steps to obtain a long-stay visa, or to extend the right of residence in Romania, assisting the client in front of the competent authorities, and also helping the client in completing the necessary formalities in order to carry out the activity as a digital nomad in Romania.
The concept of digital nomad
The digital nomad is defined as a foreigner who has an employment agreement concluded with a company registered abroad, outside Romania, who provides services for it by using the information and communication technology or who owns a company registered outside Romania, where he provides services by using the information and communication technology and he can work physically or remotely, by using the information and communication technology.
The right of residence. Temporary residence permit. Long stay visa
With the entry into force of the Romanian Law 22/2022, there were many significant legal changes, starting with the definition of the concept of digital nomad in Romania, to outlining their legal status, which concern provisions regarding the possibility of obtaining a long-stay visa, as well as a temporary residence permit in Romania.
The long-stay visa in Romania is also granted to digital nomads, who meet the following two conditions:
They have the means of support obtained from the activity carried out, in the amount of at least three times the average gross monthly earnings in Romania for each of the last 6 months prior to the date of submitting the visa application, as well as for the entire period registered in the visa;
They carry out the activities from which they obtain income, remotely from Romania by using the information and communication technology.
The fulfillment of these conditions must be reflected in the documents which are registered at the competent authorities in Romania. Pavel, Mărgărit and Associates Romanian Law Firm recommends addressing to a specialized lawyer in labor, immigration and citizenship and tax law for the submission, given that other documents may be required in addition.
,,Over time, we assisted several companies and freelancers in IT, technology, media and telecommunications sector in Romania. The concept of digital nomad in Romania is new and can develop an international IT hub in Romania”, says Radu Pavel, the Managing Partner of Pavel, Margarit and Associates Romanian Law Firm.
The digital nomads may request the extension of the right of temporary residence, on the basis of a long-stay visa, if they meet the following conditions:
They show the employment agreement concluded with a company registered abroad, outside Romania, proving the provision of remote services, using the information and communication technology, or proving the possession of a company incorporated abroad, for at least three years prior to the date of visa application, which it manages remotely by using the information and communication technology;
They show a document issued by the company incorporated abroad with which they had concluded an employment agreement or by the company incorporated abroad owned by them through which is presented all the identification and contact data of the company, the field of activity, the status of the shareholders, as well as the information about the legal representative of the company.
For a foreigner citizen who has been granted or extended the right of temporary residence in Romania will be issued a residence permit by the Romanian General Inspectorate for Immigration. This is a temporary residence permit granted to a foreigner citizen whose right of temporary residence in Romania has been granted by long-stay visa, except the right of temporary residence for work or secondment, or to whom this right has been granted without the obligation of obtaining a visa.
The Romanian temporary residence permit is valid for a period of 6 months, and the first extension of the right of temporary residence is granted for the same period. The term “digital nomad” is mentioned in the Romanian temporary residence permit. Pavel, Mărgărit and Associates Romanian Law Firm recommends addressing to a specialized lawyer in labor, immigration, citizenship and tax law, given that these extensions require the submission of new documents to the competent authorities and the requirements for the accuracy of the information are maintained.
The legal status of the digital nomads is for the first time outlined in Romania, an event that marks an important step both economically and legislatively, because the current needs require Romanian legislation, as evidenced by the actions of other European countries that have also taken measures in this direction. A lawyer specialized in labor, immigration, citizenship and tax law will guide the client to the right legal procedures, given that this new regulation is inconsistent with tax law. Therefore, it is necessary for anyone who wants to become a “digital nomad” in Romania to have knowledge, including the tax regime in Romania.
Pavel, Margarit & Associates Romanian Law Firm is one of the top law firms in Romania, offering top legal advice. The Romanian law firm clients are foreign and top local companies and high worth individuals. In 2021, the success stories of the Romanian Law Firm have brought recognition from the most prestigious international guides and publications. The firm was ranked second place in Romania by the Legal 500 publication. The Romanian law firm is also recognized by IFLR 1000 Financial and Corporate Guide 2021. Pavel, Margarit & Associates Romanian Law Firm is also the only law firm in Romania recommended by the Global Law Experts Director in London in the Dispute Resolution area of Practice.