Key Points
- Gains from crypto in Romania will be exempt from the 10% income tax.
- If gains exceed 6, 12, or 24 minimum wages, individuals will have to pay only health insurance contributions.
The Romanian Parliament has just adopted a last-minute amendment to the Fiscal Code, through a plenary vote in the Chamber of Deputies. This amendment exempts personal income from crypto investments from taxation until July 31, 2025.
The law reportedly passed with 158 votes in favor, 40 against, 16 abstentions, and 2 non-voting members. It will be sent to Klaus Iohannis for promulgation.
What This Means
According to the new amendment to the Fiscal Code, adopted by Parliament to the Law approving the Ordinance on tax amnesty, gains from crypto will be exempt from the 10% income tax.
This comes after the draft law ((including OUG nr.107/2024 for new regulations) had already passed the Romanian Senate earlier.
Official notes reveal that the exemption from income tax applies to individual taxpayers for income derived from the difference between revenue from investments in crypto purchased for resale and revenue earned and received in crypto, until July 31, 2025, inclusive.
However, it is important to highlight that, in practice, only income tax will be exempted. If the gains from crypto exceed 6, 12, or 24 minimum wages in Romania, individuals will still have to pay capped health insurance contributions (CASS).
The current minimum wage in Romania is 3,700 RON (since July 1, 2024), and starting January 2025 it will become 4,050 RON.
Crypto Tax Exemption Benefits
Tax exemption from crypto gains is justified by increasing transparency regarding crypto transactions carried out by Romanian taxpayers and enabling a realistic mapping of the crypto market within the country’s economy.
This new amendment to the law is argued based on potential benefits to the state, which could reportedly see the real size of the digital asset sector, while some of the funds coming from the sale of crypto could enter Romania’s banks.
With this temporary measure, investors could transfer their investment earnings to credit institutions in Romania, generating more money flow into the country’s economy.
Also, the new legal framework would provide credit institutions with the confidence to allow the transfer of these amounts to current accounts, eliminating the risk of fraud, currently present around the matter.
The new amendment to the Fiscal Code comes from Sabin Sărmaș who recently estimated that the money obtained by crypto investors would mostly flow into investments, especially in IT and technology, supporting the country’s economy.
The decision comes amidst a rising global interest in Bitcoin and digital assets.
Upcoming Global Changes for the Crypto Industry
Following the US election results, the crypto industry is looking forward to the upcoming changes in Washington in 2025, especially since the new President, Donald Trump, has made multiple promises for the industry.
Essential changes are expected for the digital asset sector, with the most important being creating a Strategic Bitcoin Reserve.
Massive efforts are being made in this direction, and once it becomes a reality, more countries will follow.
El Salvador, the first country that adopted Bitcoin as legal tender, has already created a national Bitcoin Treasury, buying BTC daily.
The global framework is perfectly aligned for Bitcoin to reach new ATHs and the digital asset industry to thrive.
