DoubleTaxationUnited States – Romania tax treaty: residence, 183 days, rates
Convention between the Government of the United States of America and the Government of the Socialist Republic of Romania for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (signed at Washington on 4 December 1973)
- Signed: 1973-12-04
- In force since: 1976-02-26
- Official text
If both countries treat you as resident
- An individual who is a resident of both States is deemed a resident of the State in which he maintains his permanent home; if he has a permanent home in both States or in neither, he is deemed a resident of the State with which his personal and economic relations are closest (centre of vital interests). Art. 3(2)(a) of the 1973 Convention
- Residence of an individual is determined by each State's domestic law; Art. 3(2) resolves cases in which both States treat the individual as resident. Art. 3(1) of the 1973 Convention
- If the State in which the individual has his centre of vital interests cannot be determined, he is deemed a resident of the State in which he has an habitual abode. Art. 3(2)(b) of the 1973 Convention
- If he has an habitual abode in both States or in neither, he is deemed a resident of the State of which he is a citizen; if he is a citizen of both States or of neither, the competent authorities settle the question by mutual agreement. Art. 3(2)(c)–(d) of the 1973 Convention
Income: who taxes it
| Income | Treaty rule | Article |
|---|---|---|
| Salary (employment) | The country where the work is done may tax it. Exempt if all apply: no more than 183 days in the tax year; the employer is not resident there; the pay is not borne by its permanent establishment there. | Art. 15(2) |
| Self-employment, business, services | Country of residence; the other country taxes profits of a permanent establishment (fixed base) there, or if your stay there reaches 183 days in the tax year. | Art. 7, Art. 14 |
| Pension | Only the country of residence. | Art. 16(1) |
| State pension (social security) | Only the country of residence. | Art. 16(1) |
| Government service | Usually only the paying country; exception: service in the other country by its national. | Art. 18 |
| Government service pension | Usually only the paying country; exception: service in the other country by its national. | Art. 18 |
| Rent from real estate | The country where the property is located may tax; the country of residence relieves double taxation. | Art. 6(1) |
| Dividends | Source country: at most 10%; the country of residence relieves double taxation. | Art. 10(2) |
| Interest (deposits, bonds, loans) | Source country: at most 10%; the country of residence relieves double taxation. Other rates or exemptions apply in some cases (see the article). | Art. 11(2) |
| Royalties (copyright, licences) | Source country: at most 15%; the country of residence relieves double taxation. Other rates or exemptions apply in some cases (see the article). | Art. 12(2) |
| Sale of property or shares | Real estate: the country where it is located may tax. Other property, including shares: only the country of residence. | Art. 13; Art. 6(1) |
| Other income | The source country may tax; the country of residence relieves double taxation. | no other-income article (Art. 4(1)) |
How double taxation is relieved
- Romania: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 21(1)
- United States: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 21(2)
Data checked: 2026-11-10. A short summary for individuals; the full conditions, exceptions and protocols are in the treaty text. General information, not legal advice.