It’s an economic fact, and no longer a secret, that employers are increasingly using services of freelancers or independent contractors in Romania, more than ever before. This is happening in fact everywhere across the world, especially in those economies where the cost of workforce has become a burden for the companies.

Actually, a study conducted back in 2015 by Edelman Berland, an independent research firm, and which was requested by the Freelance Union and Upwork, indicated the fact that more than one in three American workers (53.7 million Americans) are freelancing.

That is good news, as entrepreneurship should be strongly encouraged everywhere, but also a reminder to Romanian companies using services from freelancers on continuous basis: there may be legal or tax implications when using freelancers in Romania, and this is something to plan and prepare for, before even working with a tax consultant.

Clearly defining what makes a genuine freelancer’s work may sometimes be confusing to many of the employers, especially to those using services from freelancers in Romania for the first time.

If your company is using someone’s services as freelancer, you need to ensure that the individual is in fact acting as an independent contractor for your company, rather than as an employee. This is because employees who are wrongly classified as independent contractors or freelancers are always an easy target for the Romanian tax or labor authorities (ANAF). But how do you ensure a genuine independent relationship with a freelancer?

We will further explain below the most important aspects your company should consider in practice when using freelancers in Romania.

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Tax & Legal consultant since 2005.

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