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Low tax, low cost with good freedom setup: Romania vs Bulgaria is the final match?

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i888

New member
For Romania
Personal income 10%
Small business lower than 1 mil revenue 3% or 1% If there is 1 employee, could be you
Dividents tax 5%

Just to be clear.

Bucharest and Cluj are big cities and crowded, so just if you really need something that you can't find somewhere else you go in those places.

You must stay at least those 183 days in the country, Romania, to establish your residency, afterwards maybe you could travel more but you must check if that is ok, depending on your country of origin.
 

halaba

New member
You don't really pay personal income tax, if you only get dividends, you pay social security contribution for the minimum fulltime wage capped every 12months.
Maybe i'm wrong but that's ~2k€ per year
 

i888

New member
Correct, 5% is tax on dividends and that's all, excepting some 530 eur for health and social security etc , that is capped as you said.

( 530 eur is the health and ss for 1 year of minimum salary in Romania)
 

sujoe

New member
I did choose Romania.
If you relocate to another county (and use your home as company address), then you have to get a new accountant and change your address at the specific gov offices/notary.
That might be a negative point for you, as well as you have to get a couple neighbors to sign that they are okay with a company in the residential building.

If you rent an office or use an attorney as company address, nothing will disrupt your relocation. Accounting is done in most cases just by email.
In 2021, its not the case, anymore, you don't need neighbors to sign off on the papers.
 

Almouk

New member
Correct, 5% is tax on dividends and that's all, excepting some 530 eur for health and social security etc , that is capped as you said.

( 530 eur is the health and ss for 1 year of minimum salary in Romania)

You don't really pay personal income tax, if you only get dividends, you pay social security contribution for the minimum fulltime wage capped every 12months.
Maybe i'm wrong but that's ~2k€ per year

About trading as person, I know in Bulgaria the amount of social security is limited . You only pay on maximum 3000BGN income (+- 1530 euro) per month the tariff of 13.78%. So the maximum you will ever pay is about 210 euro per month. So 10% on income + maximum 210 euro per month social security.

As I have read here different quantities, I would like to confirm what should be the amount to pay per month or yearly about these social security contributions in Romania trading as person? I thought that the amount to pay was higher in Romania than Bulgaria regarding to this payments.
 

halaba

New member
As I have read here different quantities, I would like to confirm what should be the amount to pay per month or yearly about these social security contributions in Romania trading as person? I thought that the amount to pay was higher in Romania than Bulgaria regarding to this payments.
i888 is right, It's about 530€ per year, I just didn't remember how my accountant explained it and tried to calculate something but now I remember, I was also told about ~550€.

Bulgaria is a completely different story, In romania you just pay SS for the minimum wage when you payout dividends to yourself.
 

sujoe

New member
i888 is right, It's about 530€ per year, I just didn't remember how my accountant explained it and tried to calculate something but now I remember, I was also told about ~550€.

Bulgaria is a completely different story, In romania you just pay SS for the minimum wage when you payout dividends to yourself.

In Romania, if you are listed as a natural person shareholder and you pay yourself dividends more than 12Months * Monthly Minimum Wage for that year, you will need to pay 10% Health Insurance on it, not the 25% Pension though.

One way around this is of course using a corporation to be the shareholder.
 

i888

New member
Health insurance is that sum, 530eur and capped. I live in Ro-mania.

In some aspects tax in this country is quite ok, as long as you don't go on the way of salary, that has a 45% tax on it so you kinda make fifty fifty with the gov on the money, tva is 24%, w some exception for basic food books etc at 5%, same for some real estate if less than dunno the sum of money.


I think Brasov will grow big after the airport will be opened, mountains are in the city and a lot of small cities in the mountains, w ski resorts, or in the rural area close by, mostly saxon architecture.
 

sujoe

New member
Health insurance is that sum, 530eur and capped. I live in Ro-mania.

In some aspects tax in this country is quite ok, as long as you don't go on the way of salary, that has a 45% tax on it so you kinda make fifty fifty with the gov on the money, tva is 24%, w some exception for basic food books etc at 5%, same for some real estate if less than dunno the sum of money.


I think Brasov will grow big after the airport will be opened, mountains are in the city and a lot of small cities in the mountains, w ski resorts, or in the rural area close by, mostly saxon architecture.
I always have a question but two accountants actually gave me two contradictory answers.

Lets say the Romanian company hires a remote employee, which never set foot in Romania the whole year, and thus a non-resident. Is the employee obliged to pay for Health Insurance and Pension? the 10% personal income tax is of course payable, according to Romanian laws, but how about health insurance and pension?

Thanks
 

halaba

New member
I always have a question but two accountants actually gave me two contradictory answers.

Lets say the Romanian company hires a remote employee, which never set foot in Romania the whole year, and thus a non-resident. Is the employee obliged to pay for Health Insurance and Pension? the 10% personal income tax is of course payable, according to Romanian laws, but how about health insurance and pension?

Thanks
You can only hire residents from my experience. You need a resident ID (Personal Code / CNP), I don't think there is a way to hire someone without a CNP.
And if you pay salary then you just pay everything I don't think there is a way around that.
 

sujoe

New member
You can hire remote employees, that's what I'm told by both accountants, it's just that if they will be dragged into the net of the high social security tax of Romania.
You can only hire residents from my experience. You need a resident ID (Personal Code / CNP), I don't think there is a way to hire someone without a CNP.
And if you pay salary then you just pay everything I don't think there is a way around that.
 

i888

New member
Depending from which country is that person you could hire easily UE, Swiss, CE or very hard you need to prove that you could get hire from Romania, UE, Swiss.

Google translate this

Salary has those 45% taxes and doesn't matter where that employee comes from.
 

Shlomo

New member
How is it to live in Constanta? Other cities are mentioned, and yet I would think Constanta should be one of the better choices in Romania, according to my impression. Opinions?
 

Marc M

New member
How is it to live in Constanta? Other cities are mentioned, and yet I would think Constanta should be one of the better choices in Romania, according to my impression. Opinions?
You dont want to live in constanta. Beleave me. Real life including beach is in v
Varna/BG
 

JimBeam

Active Member
Flat prices are so cheap in Bulgaria...
You can check some of the flats and prices in here: Login • Instagram

DISCLAIMER: I'm not affiliated with that site or the company... I just happen to follow them on IG... The sub €500/m2 prices for new beach properties seem unreal...
 

uplana

Corporate Services
Mentor Group Gold
Flat prices are so cheap in Bulgaria...
You can check some of the flats and prices in here: Login • Instagram

DISCLAIMER: I'm not affiliated with that site or the company... I just happen to follow them on IG... The sub €500/m2 prices for new beach properties seem unreal...
Interesting place to research a little. I was aware of that Bulgaria was cheap but not the many options for those of us willing to relocate. I wonder how it may be to live in either Romania or Bulgaria with a 400K Euro income per annum?
 

ilpablo

New member
Interesting place to research a little. I was aware of that Bulgaria was cheap but not the many options for those of us willing to relocate. I wonder how it may be to live in either Romania or Bulgaria with a 400K Euro income per annum?
LOL with that money you'r gonna live like a double king there
 

i888

New member
How is it to live in Constanta? Other cities are mentioned, and yet I would think Constanta should be one of the better choices in Romania, according to my impression. Opinions?
Constanta and other cities next to the sea or in or near the Danube delta are ok to live ONLY during summer months, afterwards you'll feel depressed.
Let's say 3 months.
 
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