Citizens of the European Union are free to choose in which member state they wish to make themselves taxable. For this, they must primarily have a residential address in the given country.

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If someone has a residence address in several states, becoming a taxpayer can be determined based on the "center of interests".

 

Consequently, in order to achieve favorable tax conditions, it is advisable to establish a residence in Romania, especially if the income of the Romanian company is our primary income, since the primary source of income can rightly be considered the center of our interests.

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As a general rule, if the dividend comes from another country, it must be taxed at the tax rate of the country of becoming a taxable person. However, if the tax treaty for the avoidance of double taxation between the two countries allows for this, then we can deduct the tax already paid in the other country from our dividend tax payable here.