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How to Pay Contractors in Romania: Complete 2025 Guide

For businesses paying independent contractors in Romania

Quick Summary

Best payment methods for Romanian contractors:

  1. Wise (lowest fees, best rates)
  2. SEPA transfer (for EU companies)
  3. PayPal (widely accepted)
  4. Payoneer (popular alternative)

Key requirements:

  • CIF (Romanian tax ID)
  • Written service agreement
  • Currency considerations (EUR preferred over RON)
  • ANAF tax compliance (contractor's responsibility)
  • VAT considerations (if applicable)

Why This Guide Is Different

Romania is an EU member with a growing tech sector and competitive rates. If you're hiring contractors in Romania, you need to understand:

  • Payment method preferences (Wise and SEPA are most popular)
  • Currency considerations (EUR preferred over RON)
  • CIF requirements (Romanian tax identification)
  • ANAF compliance (Romanian tax authority)
  • VAT rules for cross-border services
  • Time zone advantages (EET is UTC+2, good overlap with EU)

Payment Methods Compared

MethodCostSpeedBest For
Wise$2-$61-2 daysRegular payments, best exchange rates
SEPA Transfer$0-$51-2 daysEU companies, EUR payments
PayPal$5-$12InstantWidely accepted, instant transfers
Payoneer$5-$101-3 daysPopular with Romanian freelancers

Recommended: Wise or SEPA

Why Wise and SEPA work best for Romania:

  • Lowest fees ($0-$6 vs $15-$30 for traditional international transfers)
  • Fast transfers (1-2 business days)
  • Real mid-market exchange rate (Wise)
  • SEPA is free or very cheap for EU companies
  • Both widely accepted by Romanian contractors

Currency Considerations

Most Romanian contractors prefer EUR over RON for stability and international work.

EUR vs RON vs USD

Pay in EUR if:

  • You're an EU company (use SEPA)
  • Contractor prefers EUR (most do)
  • You want to avoid currency conversion fees
  • Contractor works primarily with EU clients

Pay in USD if:

  • You're a US company
  • Contractor prefers USD
  • You're paying multiple international contractors in USD

Pay in RON only if:

  • Contractor specifically requests RON
  • You have RON operations in Romania

Pro tip: Most Romanian tech contractors prefer EUR for stability. Always ask your contractor which currency they prefer before setting up payments.

Tax and Compliance Requirements

CIF (Tax ID)

CIF (Cod de Identificare Fiscală) is Romania's tax identification number.

  • Required for: All contractors providing services
  • Your responsibility: Verify contractor has valid CIF
  • Contractor's responsibility: Register with ANAF and maintain CIF

VAT Considerations

Romania is an EU member, so VAT rules apply for cross-border services.

  • B2B services: Reverse charge mechanism applies (no VAT on invoice)
  • Your VAT number: Provide to contractor if you're an EU business
  • Contractor's VAT: They should provide VAT number if registered
  • Non-EU clients: No VAT charged on services to non-EU clients

Your Responsibilities (as the client)

  • Verify CIF: Ensure contractor has valid tax ID
  • Collect invoices: Get invoice for each payment
  • Written agreement: Have clear service contract
  • Payment records: Keep documentation of all payments
  • No withholding: You don't withhold Romanian taxes (contractor handles this)

Important: As a foreign company paying a Romanian contractor, you typically don't have tax withholding obligations in Romania. The contractor handles their own ANAF tax compliance. Consult with a tax professional for your specific situation.

Why Romania for Nearshoring?

  • EU member: Simplified legal and tax framework
  • Strong tech talent: Growing engineering and IT workforce
  • Competitive rates: 40-60% lower than Western Europe
  • Good time zone: EET (UTC+2) overlaps well with EU and US East Coast
  • English proficiency: High English skills in tech sector
  • Cultural proximity: European business culture

Tools for Managing Romanian Contractors

Kontrable is built specifically for managing international contractors:

  • Track payments across Wise, SEPA, PayPal, and other methods
  • Store contracts and invoices
  • Handle multiple currencies (EUR, RON, USD, etc.)
  • Generate payment reports for accounting
  • No per-contractor fees (unlike Deel at $49/month per contractor)
Join Kontrable Waitlist

Frequently Asked Questions

Q: Should I pay Romanian contractors in EUR or RON?

A: Most Romanian tech contractors prefer EUR for stability. Always ask your contractor which currency they prefer.

Q: Do I need an EOR platform for Romanian contractors?

A: No. EOR is for employees. Romanian contractors handle their own ANAF tax compliance. You just need a good payment method (Wise/SEPA) and contractor management tool (Kontrable).

Q: What's the best payment method for Romania?

A: If you're an EU company, use SEPA transfers ($0-$5). If you're outside the EU, use Wise ($2-$6) for the best rates.

Q: How does VAT work with Romanian contractors?

A: For B2B services within the EU, the reverse charge mechanism applies (no VAT on invoice). For non-EU clients, no VAT is charged. The contractor handles VAT compliance with ANAF.

Get Started

Managing Romanian contractors?

  1. Verify contractor has valid CIF
  2. Set up Wise or SEPA transfer capability
  3. Create written service agreement
  4. Ask contractor for currency preference (EUR or USD)
  5. Exchange VAT numbers if applicable
  6. Get contractor's payment details

Want to automate this?

Kontrable launches January 2026 with contractor management tools built for international teams.

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