What Americans Living in Romania Need to Know in 2025

Romania offers a unique blend of rich history, vibrant culture, and affordable living, making it an attractive destination for many Americans. However, residing in Romania comes with specific considerations, especially regarding tax obligations and financial planning. This guide provides essential information for Americans living in Romania in 2025, covering tax responsibilities, healthcare, and economic updates.

Americans living in Romania: Visa types

For U.S. citizens seeking permanent residency in Romania, several visa options are available. Below are the primary pathways:

Permanent Residency Permit

Who it’s for: U.S. citizens who have legally and continuously resided in Romania for at least five years.

Overview: This permit allows individuals to reside indefinitely in Romania, granting rights similar to those of Romanian citizens, excluding political rights.

Requirements:

• Continuous residence: Legal and uninterrupted stay in Romania for a minimum of five years.
• Financial means: Proof of sufficient financial resources to support oneself for at least 12 months.
• Health insurance: Valid public health insurance coverage.
• Accommodation: Legal proof of residence in Romania.
• Clean criminal record: No significant legal infractions.
• Language proficiency: Basic knowledge of the Romanian language.

Note: Time spent in Romania for studies or as an asylum seeker does not count towards the five-year requirement.

Business Investment Visa

Who it’s for: U.S. entrepreneurs and investors aiming to establish or invest in Romanian businesses.

Overview: This visa facilitates residency for individuals investing in Romania’s economy, particularly in sectors like real estate and technology.

Requirements:

• Investment: Minimum investment of €50,000 in a limited liability company or €70,000 in a joint-stock company.
• Job creation: Creation of at least 10 full-time jobs for a limited liability company or 15 for a joint-stock company.
• Financial means: Minimum monthly income of €500 for limited liability company shareholders or €700 for joint-stock company shareholders.
• Sustained investment: Maintain the investment throughout the residency period.

Family Reunification Visa

Who it’s for: U.S. citizens who are family members of Romanian citizens or foreign residents in Romania.

Overview: This visa allows family members to join their relatives residing in Romania.

Requirements:

• Proof of relationship: Valid marriage certificate or birth certificates, translated into Romanian.
• Financial means: The sponsor must demonstrate sufficient income to support the family member(s).
• Accommodation: Proof of suitable living arrangements in Romania.
• Health insurance: Valid health insurance coverage.

Note: After five years of continuous residence, family members may apply for permanent residency.

Each visa type has specific requirements and procedures. It’s advisable to consult with Romanian immigration authorities or legal experts to ensure compliance with current regulations.

How to apply for a Romanian visa as a U.S. citizen

Applying for a Romanian visa as a U.S. citizen involves several key steps. Here’s a clear breakdown of the process, so you know exactly what to expect.

1. Identify the right visa type

Decide which visa fits your situation—permanent residency, business investment, or family reunification. Check the latest requirements for your chosen pathway.

2. Gather required documents

Collect the necessary paperwork, which may include:

• A valid U.S. passport
• Proof of financial means
• Health insurance
• Proof of accommodation in Romania
• Criminal background check
• Documents specific to your visa (such as marriage or birth certificates, investment proof, or employment contracts)

3. Complete the visa application

Fill out the appropriate application form, available through the Romanian Ministry of Foreign Affairs or the Romanian consulate/embassy in your region.

4. Submit your application

Submit your application and supporting documents either online, by mail, or in person at the nearest Romanian consulate or embassy.

5. Attend an interview (if required)

Some visa categories require an in-person interview at the consulate. Be prepared to answer questions about your application and intentions in Romania.

6. Wait for processing and decision

Processing times vary, so track your application status. You’ll be notified once a decision has been made or if additional documents are needed.

Once approved, follow any final instructions for entry and residency registration in Romania.

Healthcare options for Americans living in Romania

If you’re an American living in Romania, understanding your healthcare choices is essential for your peace of mind. Navigating a new healthcare system can feel daunting, but with the right information, you can make informed decisions that suit your needs and lifestyle.

How the Romanian healthcare system works

Romania has a public healthcare system that is funded through mandatory health insurance contributions. Access to public healthcare is generally available to residents who pay into the system, including employed expats and their dependents. There’s also a growing private healthcare sector, which offers more flexibility and shorter wait times, often with English-speaking staff.

Healthcare options for Americans living in Romania

As an American expat in Romania, you can consider several healthcare paths:

• Public health insurance: If you’re employed in Romania or have permanent residency, you’ll likely pay into the national health insurance fund and gain access to public hospitals and clinics.
• Private health insurance: Many expats choose to supplement public coverage with private insurance for broader access to private clinics, faster appointments, and English-speaking doctors.
• International health insurance: If you travel often or want more comprehensive coverage, international plans offer access to a wider network of providers—including care outside Romania.
• Out-of-pocket payment: Private medical care in Romania is often more affordable than in the U.S., so some expats pay directly for routine care, especially at private clinics.

Pros and cons of healthcare for American expats living in Romania

Pros:

• Public healthcare is available and affordable for residents.
• Private healthcare offers high-quality services and shorter wait times.
• Out-of-pocket costs at private clinics are relatively low compared to the U.S.
• International insurance options provide flexibility for frequent travelers.

Cons:

• Public hospitals may have longer wait times and fewer amenities than you’re used to in the U.S.
• Not all public healthcare staff speak English, which can present communication challenges.
• Private insurance or care adds extra costs and may be necessary for more comfortable or specialized services.
• Navigating paperwork for public insurance can be complex, especially if you’re new to the system.

Cost of living for American expats living in Romania

Adjusting to the cost of living is often one of the biggest transitions for Americans moving to Romania. Whether you’re relocating for work, retirement, or adventure, understanding how daily expenses compare to what you’re used to back home can help you budget with confidence and avoid unwelcome surprises.

Below, we’ve put together a comparison of key living costs in Romania versus the United States. Remember, actual expenses will vary depending on your location (Bucharest vs. smaller cities), lifestyle, and personal choices.

Expense Category	Romania (Monthly Avg.)	United States (Monthly Avg.)	Notes / Comparison
Groceries	$200–$300	$400–$600	Local produce and staples are much less expensive in Romania. Imported goods can be pricier.
Housing (1BR apt, city center)	$400–$700	$1,500–$2,500	Rent in Bucharest or major cities is significantly lower than in comparable U.S. cities. Smaller towns are even more affordable.
Transportation (public)	$20–$30	$70–$120	Public transport is reliable and much cheaper in Romania. Many expats don’t need a car, especially in cities.
Mobile phone plan	$7–$15	$40–$80	Mobile and internet plans are very affordable and widely available.
Utilities (electricity, heating, etc.)	$100–$150	$150–$250	Utilities are somewhat lower, but can rise in winter due to heating.

Pros and cons of the cost of living in Romania for American expats

Pros:

• Lower everyday expenses: Groceries, rent, and services are much more affordable than in most parts of the U.S., letting your dollar stretch further.
• Affordable healthcare: Out-of-pocket costs and insurance premiums are generally lower, even in the private sector.
• Accessible public transport: You can get around cities easily and cheaply without a car.
• Dining and entertainment: Eating out, coffee, and leisure activities are budget-friendly by U.S. standards.

Cons:

• Imported goods can add up: U.S. brands or specialty products often cost more and may be harder to find.
• Wages and income: Local salaries are much lower than in the U.S., so expats relying on local income may find budgets tighter.
• Housing standards: While affordable, some apartments may lack the space, insulation, or amenities you’re used to in the U.S.
• Cultural adjustment: Shopping habits, store hours, and service expectations can take some getting used to.

We know adapting to a new cost of living brings both excitement and challenges. The good news is that, for most Americans, Romania presents a chance to enjoy a high quality of life at a fraction of U.S. prices—just be ready for a few surprises along the way!

Where do American expats tend to live in Romania?

While you’ll meet Americans throughout Romania, most expats find themselves gravitating to a few key locations:

• Bucharest: The capital is by far the most popular destination, thanks to its international business scene, vibrant nightlife, and large English-speaking community. Neighborhoods like Dorobanți, Herăstrău, and the city center are especially expat-friendly.
• Cluj-Napoca: This lively university city in Transylvania attracts Americans with its tech industry, creative atmosphere, and youthful vibe. The cost of living here is lower than in Bucharest, but the amenities are excellent.
• Timișoara: Known for its multicultural spirit and historical charm, Timișoara draws expats working in tech, engineering, and academia. Its parks, cafes, and growing international community make it a welcoming spot.
• Brașov: Set in the scenic Carpathian Mountains, Brașov appeals to those who want a blend of city comforts and outdoor adventure. Its relaxed pace and beautiful surroundings are ideal for remote workers or retirees.

Tax implications for Americans living in Romania

Navigating taxes as an American living in Romania can feel like a maze—especially when you’re balancing life in a new country and trying to stay compliant with U.S. rules. We understand the unique challenges you face: deciphering unfamiliar tax documents, managing finances in two currencies, and keeping up with both Romanian and American requirements. Let’s break down what you need to know so you can approach tax season with clarity and confidence.

American expat tax obligations

No matter where you call home, if you’re a U.S. citizen or green card holder, you’re still required to file a U.S tax return each year. This comes as a surprise to many expats, especially if you’re already paying taxes in Romania. U.S. taxes are based on citizenship, not residency, so your global income—including Romanian earnings—must be reported on your annual Form 1040. If your income exceeds the standard filing thresholds (which vary by filing status and age), you must file—even if you owe nothing after credits or exclusions.

Romanian taxes

Living and working in Romania means you’ll likely be considered a Romanian tax resident if you spend more than 183 days in the country over a 12-month period. Romanian residents are taxed on their worldwide income, just like in the U.S. The Romanian tax year follows the calendar year, and the flat personal income tax rate is currently 10%. 

You’ll need to register with the Romanian tax authorities and file an annual tax return if you’re working or running a business locally. Keep in mind that tax deadlines and required forms may differ from what you’re used to in the U.S., so it’s important to plan ahead.

Foreign Earned Income Exclusion (FEIE)

The Foreign Earned Income Exclusion is one of the most powerful tools available to American expats in Romania. If you qualify—either by the Physical Presence Test (spending at least 330 full days outside the U.S. in a 12-month period) or the Bona Fide Residence Test (establishing residency in Romania for a full calendar year)—you can exclude up to $130,000 (for tax year 2025; this amount adjusts yearly) of your foreign earned income from U.S. taxation. You claim this exclusion using IRS Form 2555. 

Note that the FEIE applies only to earned income (like salaries or self-employment income), not to passive income such as interest, dividends, or rental income.

Foreign Tax Credit (FTC)

If you pay taxes to Romania on your income, you may be eligible for the Foreign Tax Credit (FTC), which helps offset your U.S. tax liability. You can claim a dollar-for-dollar credit on your U.S. taxes for income taxes paid to Romania, up to the amount of U.S. tax owed on that same income. This is claimed on IRS Form 1116. 

The Foreign Tax Credit is especially useful if your Romanian taxes are higher than the U.S. rate or if you don’t qualify for the full Foreign Earned Income Exclusion. Sometimes, a combination of the FEIE and FTC offers the best outcome, but this depends on your specific situation.

Tax treaty

The United States and Romania have a tax treaty designed to help prevent double taxation and clarify which country has the primary right to tax specific types of income—like dividends, pensions, or capital gains. While the treaty can provide relief from double taxation, it doesn’t exempt you from filing a U.S. tax return or reporting your worldwide income. It can, however, help you avoid being taxed twice on the same income and may offer special provisions for certain types of income. Understanding how the treaty applies to your circumstances—and making the correct “treaty election” on your return—can be tricky, so expert guidance is often helpful here.

Reporting foreign bank accounts (FBAR and FATCA)

If you have financial accounts in Romania (like bank accounts, investment accounts, or even some pension plans), you may have extra reporting requirements:

• FBAR (FinCEN Form 114): If the aggregate value of your foreign financial accounts exceeds $10,000 at any point during the year, you must file an FBAR electronically by April 15 (with an automatic extension to October 15).
• FATCA (Form 8938): You may also need to file IRS Form 8938, depending on your filing status and the value of your foreign assets (thresholds start at $200,000 for single filers living abroad).

Failing to report these accounts can lead to steep penalties—even if you owe no tax—so it’s crucial to stay compliant.

Social Security

Your Social Security situation depends on your employment status in Romania:

• If you’re employed by a Romanian company: You’ll typically pay into the Romanian social insurance system, not U.S. Social Security. However, the U.S. and Romania do not currently have a totalization agreement, which means your contributions in Romania don’t count toward U.S. Social Security credits. This can affect your future benefits if you don’t meet the minimum U.S. work credit requirements.
• If you’re self-employed: You may still be required to pay U.S. self-employment tax (covering Social Security and Medicare), in addition to any Romanian contributions. This can lead to double contributions for self-employed expats.
• Retirees: U.S. Social Security benefits can generally be received in Romania, but you’ll want to ensure your address and banking information are up to date with the Social Security Administration.

Sorting out Social Security as an expat can be nuanced, especially as rules may change or depend on your specific work arrangement. We’re here to help you make sense of your situation and plan accordingly.

Frequently Asked Questions