In recent years, opportunities in the labor market have been elevated to a new level by access to a global talent pool. With freelancers, companies save costs, get high-quality services, and complete less paperwork. Indeed, there is a large pool of independent and highly skilled workers. It is estimated that there are 1.2 billion freelancers worldwide, more than 34% of the world’s workforce.
Romania is a desirable area for startups and large companies seeking contractor labor. A lot of experts live in Romania. It teems with brilliant developers, writers, and graphic designers. Bureaucratic requirements are minimal, and employer tax payments are also modest. Ready to work with freelancers from Romania? This guide explains everything you need to know and gives practical advice for working with talent from Romania.
Romania
Romania joined the European Union (EU) in 2007. It is a prosperous country with a dynamic and emerging economy dominated by the service sector. The major industries involve manufacturing, textiles, and industrial plants. The leu is the official currency unit in Romania. One euro is equal to approximately 4.85 lei.
With 19.1 million inhabitants, Romania is located in the European Balkans. The capital and largest city of the country is Bucharest. After Istanbul and Athens, it is the third largest city in southern Europe and offers great potential for employment. Mountains, forests, and picturesque hillsides characterize the country’s unspoiled landscape. It has an abundance of natural resources, including fertile farmland, oil deposits, and metals. Romanian is the official language. It is easy to find staff members who speak English well for casual and professional conversations. The top skills of Romanian specialists involve expertise in adobe illustrator, logos design, react native, google cloud, digital art, and web development.
The advantages of working with Romanian freelancers.
Romania is one of the suggested destinations. If you wish to grow your operations, have a more adaptable and global crew. Looking for a qualified content writer, backend developer, full stack engineer, web developer, or professional graphic designer? Almost any type of company may benefit from choosing to hire freelancers in Romania. Furthermore, you can locate highly rated freelancers with no daunting and complex paperwork to complete.
Other dedicated fields involve marketing, the visual arts, software development, graphic design, web design, or translation. Moreover, recruiting independent freelancers from Romania is a growing phenomenon worldwide. In this country, self-employment as an independent contractor is becoming a common form of collaboration. More talented freelancers are opting for this form of work.
Because Romanian freelancers are so diverse and highly skilled, you can quickly hire a competent workforce without the need or dangers associated with permanent employment contracts. You can also count on a simpler process. Since foreign companies hiring remote freelancers (PFA) in Romania are not required to provide social benefits such as health insurance, paid time off, or retirement plans. However, they are responsible for ensuring that the freelancer is registered with the Romanian authorities, paying the necessary taxes and social security contributions.
Freelancers in Romania
Legal freelancers are referred to as “individual contractors” in Romania since they provide professional services for businesses. This means that anyone who, while not complying with the organization’s internal legal guidelines as required by an employment contract, provides services to a company independently and for compensation. It can be done on a project basis or through a monthly or hourly rate.
To work as a contractor in Romania, the person has to register with the National Trade Register Office (ONRC) as a sole proprietor, or Persoană Fizică Autorizată(PFA). In order to qualify as a PFA, they have to be more than 18 years old and prove a lack of tax evasion background.
Independent contractors must provide Forms 070 and 220 to a local fiscal body within fifteen days of registering. Within ten days of receiving their first payment for work-related services, VAT registration is also a must.
Besides it, the following documents must be submitted to the local office.
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An application (which can be found here)
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an ID
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professional and academic credentials
How to hire Romania freelancers?
When hiring a freelancer in Romania, you must comply with Romanian legal and tax regulations. The source to find talent also depends on who you are looking for, such as a stack web developer, a full stack developer, or a brand designer. You can also search for Romanian contractors through recommendations, Linkedin, internet resources, or dedicated job boards.
Once you choose the talent, it is time to prepare a contract. An independent contractor agreement needs to explicitly state the independent nature of the job to avoid being construed as an employment contract, the penalties, and the costs associated with misclassification.
The following requirements must be specified:
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Payment schedules and rates
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Range of services (for example, coding in javascript or Android development services)
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Contract term and termination policy
In terms of withholding tax obligations, businesses hiring independent contractors must make social security payments if they are subject to a relevant EU social security law and pay the freelancer outright. Independent contractors are permitted to operate as sole proprietors under two legal classifications: contractors (antreprenori individuali) and liberal professionals. To lawfully hire a freelancer, you must adhere to contracts and the Romanian Fiscal and Civil Codes.
Looking for an even faster way? With us, you save time from forming a job contract and working with them directly with a tax invoice. This way, you will save 15% of your time each month!
How to pay independent contractors in Romania?
There are no set terms for sending the payment. They are based on the contract between the employer and the contractor. The parties can agree on the conditions and the schedule of payments. Apart from the Romanian leu, other currencies can be used. You can find several solutions to conventional, sometimes costly bank transfers, including online money transfer providers like PayPal, Payoneer, or Revolut, which provide better rates and quicker money delivery.
The Romanian workforce market is there for you to explore. At the same time, remember to devise a strategy to monitor your freelancers’ work. Choose the right tool to ensure good communication and timely delivery of tasks. Always screen and interview the candidates to verify their experience in a given niche, check their knowledge of tools, or organize writing tasks. For sure, you will find suitable freelancers for your business. Time to grow your business with freelancers!
