Employer of Record in Romania
Romania has quietly become one of the EU's strongest cost-to-talent ratios for engineering and IT outsourcing, thanks in part to a flat income tax system and sector-specific tax incentives for software developers. The opportunity is real; the part that still needs handling is a correctly structured contract, notice period and — for non-EU hires — a work permit inside the EU quota system. An Employer of Record gets the structure right without slowing down the hire.
Why hire in Romania through an EOR
Romania combines a large, well-trained technical workforce with one of the lowest employment cost bases in the EU, making it a natural nearshoring choice for companies already operating in Western Europe. Romania's flat 10% personal income tax rate, plus a long-standing tax exemption for IT sector employees meeting specific criteria, adds a genuine cost advantage on top of lower base salaries — but only if the payroll is structured to capture it correctly.
Employment law essentials in Romania
Probation periods run up to 90 calendar days for standard roles, extending to 120 days for management positions. Statutory minimum annual leave is 20 working days. Employer-initiated termination requires a minimum notice period of 20 working days. Romanian labour contracts are registered in a national employee register (REVISAL), a mandatory administrative step that must happen correctly and on time.
How hiring through an Employer of Record works
Five clean steps from candidate selection to compliant, ongoing employment — with xpath.global as the legal employer on record.

You operate as if the employee were on your internal team — without entity setup, cross-border compliance risk or payroll complexity.
- 01Step 01
Select your candidate
Identify the person you want to hire — anywhere across Europe. We support hiring in 20+ European countries, whether it's a new recruit, a converted contractor or an internal transfer.
- 02Step 02
Immigration & relocation readiness
Before the contract is signed, our in-house mobility team checks what's required for the move: work permits, visas, residence registration, posted-worker notifications, A1 certificates, home search, school support and settling-in. Because xpath.global combines EOR with global mobility, employment and relocation are orchestrated by one case owner — not bounced between vendors.
- 03Step 03
Employment setup through xpath.global
Onboarding typically begins within a few business days of candidate confirmation. xpath.global drafts a locally compliant employment contract and hires the employee through our in-country entity — no need for you to open a legal presence.
- 04Step 04
Payroll, taxes and benefits administration
We run payroll coordination, income tax, social security and statutory benefits in line with each country's labour law — plus supplementary benefits (private health, pension, equity) when your policy calls for them.
- 05Step 05
Ongoing employment and HR support
xpath.global maintains continuous compliance, contract updates, leave, expenses and offboarding — while you manage the employee's day-to-day work exactly as you would with an internal hire.
Payroll, tax & immigration in Romania
Romanian payroll benefits from the flat 10% income tax rate, though employer and employee social contributions (pension, health, and a work insurance contribution) still apply on top. The IT sector income tax exemption, where applicable, requires specific documentation to claim correctly — missing this paperwork means paying more tax than necessary. EU/EEA nationals have free movement; non-EU hires need a work permit within Romania's annual quota, plus a residence permit.
How xpath.global's EOR works in Romania
Your case owner registers the contract in REVISAL correctly and on time, checks and applies the IT sector tax exemption where the role qualifies, and — for non-EU hires — manages the work permit quota and residence permit process under one case owner.
Stay compliant while you grow — everywhere.
Contracts, minimum wage, statutory benefits, terminations and local labour law across 20+ European countries. Our compliance team monitors changes so your team never gets caught out.
- Full employee lifecycle — hire, adjust, terminate
- Regulatory monitoring and proactive alerts
- 200+ legal experts specialised by country
- Data protection: GDPR, SOC 2 aligned processes
Pay, manage and grow your global team.
Transparent, per-employee pricing across the services that surround the EOR relationship — employment, immigration, contractors and full mobility. All plans include a dedicated case owner and platform access.
Employer of Record
Employ talent across Europe without setting up a local entity.
- Legal employment in 20+ European countries
- Locally compliant contracts & onboarding
- Payroll, tax & social security handled
- Statutory + supplementary benefits
- Automated compliance & filings
- 24/7 HR & legal expertise
Immigration Compliance
Employer of Record bundled with work authorization and visas — one case owner end-to-end.
- Legal employment in 20+ European countries
- Locally compliant contracts & onboarding
- Payroll, tax & social security handled
- Work permit & visa processing
- In-house immigration specialists
- Family & dependant support
- Posted-worker & A1 filings
- Same case owner across EOR & immigration
Contractor Management
Engage and pay global contractors compliantly.
- Compliant contractor agreements
- Payments in 120+ currencies
- Misclassification risk checks
- Automated invoicing & tax forms
- Centralized contractor dashboard
Indicative pricing. Final quotes depend on country, role and volume — we confirm the exact monthly and one-off fees before you sign.
FAQs — Employer of Record in Romania
Does Romania's flat tax rate apply to all employees?+
The 10% flat income tax is standard, and IT sector employees meeting specific criteria may qualify for a further exemption. xpath.global checks eligibility and applies it correctly in payroll.
What is REVISAL and why does it matter?+
It's Romania's mandatory national employee registration system — contracts must be registered correctly and on time, or the employer faces penalties. xpath.global handles this as part of every Romanian hire.
Can xpath.global sponsor a non-EU work permit in Romania?+
Yes, within Romania's annual work permit quota — our immigration team manages timing and the residence permit process together.
As more EU companies shift engineering capacity toward lower-cost EU member states, Romania's combination of tax incentives and technical talent keeps it near the top of that shortlist — provided the payroll and registration details are handled correctly from the start.
Ready to hire in Romania?
One case owner. Contract, payroll, tax and — where needed — immigration, under one roof. Talk to us about your Romania hire.
One partner for the full mobility stack
Explore the rest of our in-house global mobility, immigration and tax offering.
Employer of RecordHire compliantly in 150+ countries without setting up a local entity.
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Immigration & VisasWork permits, visas and posted-worker filings in 100+ countries.
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Tax & PayrollIncome tax, social security and cross-border tax positions.
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RelocationEnd-to-end moves — home search, schools, shipping and more.
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Settling-in (DSP)On-the-ground support for employees and their families.
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Global Mobility CoordinationOne case owner across every vendor and every country.
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Business VisasShort-term travel authorisations for global teams.
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Notarial SupportApostille, legalisation and document authentication.
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