⚖️ Comparisons & guides

Romania vs Bulgaria: Where to Open Your EU Company

Romania and Bulgaria are two of the most popular low-tax bases in the European Union, and foreign founders often weigh one against the other. Both are full EU members, both offer competitive tax regimes, and both can be set up by non-residents. So which fits you? This neutral Romania vs Bulgaria company guide compares the factors that matter most.

At a glance

Factor	Romania (2026, verified)	Bulgaria (commonly cited, confirm)
Corporate profit tax	16%	~10% flat (confirm current rate)
Micro / small-company regime	1% on turnover (cap €100,000, ≥1 employee)	none equivalent; flat rate applies
Personal income tax	progressive / flat depending on income type	~10% flat (confirm current rate)
Dividend tax	16%	low, but confirm current rate
VAT	standard 21%, reduced 11%; threshold RON 395,000	EU-standard VAT; confirm rate and threshold
EU membership	yes	yes
Remote setup	yes, fully remote, English-language	generally possible; varies by provider

Corporate taxation

Bulgaria is widely known for a commonly cited ~10% flat corporate tax and a similar flat personal rate. These figures are approximate and change over time, so confirm current rates with a local professional before deciding.

Romania’s headline corporate profit tax is 16%, but the real attraction for small founders is the micro-company regime: 1% on turnover (up to a €100,000 cap, with at least one employee). For a lean, revenue-generating business under that cap, 1% on turnover can beat a 10% rate on profit — this is where Romania often wins. Read more on the 1% micro tax.

VAT, dividends and compliance

Romania’s VAT is 21% standard / 11% reduced, with a registration threshold of RON 395,000. Dividend tax is 16%. Bulgaria applies EU-standard VAT and a low dividend rate, but we won’t quote precise figures here — confirm the current numbers directly.

On compliance, both require ongoing bookkeeping and filings. Romania’s micro-company has a simple, predictable monthly model that many non-residents find easy to run with partner accountants. Full detail is in our Romania company tax guide.

Setup, banking and EU access

Both countries grant the same EU single-market access, so neither has an advantage there. For remote founders, Romania can be incorporated fully remotely and in English, and we handle banking introductions and tax registration end to end. Bulgarian setup is generally available too, with the process and banking experience varying by provider.

So which is better?

Honestly, the best choice depends on your situation — your turnover, profit margin, employee plans, where you’ll bank, and your personal tax residency. A high-margin consultancy under €100,000 turnover may pay less under Romania’s 1% micro regime; a higher-profit business might model Bulgaria’s flat rate differently. Run your real numbers and get professional advice before committing.

These are 2026 figures. Foreign tax rates change and vary by individual situation — Bulgarian numbers above are approximate. Always confirm current rules with a professional before deciding.

Open your Romanian company

If Romania fits your plan, we make it simple: open a company as a non-resident — remote, English-language, with the right tax setup and partner accountants from day one.