Romanian micro-company

[1nomad]

Anybody tried this Romanian system for digital business? Tax 3% (from all incomes) sounds too good to me What's the catch?

 

[realcat]

Is there a turnover cap for being a micro company, there must be...

 

[1nomad]

The maximum threshold of annual turnover is EUR 1 mil

 

[Martin Everson]

Romanian?

Anyone got any further info on this. It's worth a look

 

[clemens]

do you have some link or something where we can read about it? Don't you think it is only for Romanian citizens? means you have to be there to have a 3% income tax? who the f**k want to live in Romania

 

[Martin Everson]

Tax is on turnover it seems.

Taxation for Micro-Enterprises in Romania

 

[negon]

great, now we just need a reliable agent that can help open corps there, remote, someone know?

 

[blockchain4ever]

Don't you think it is only for Romanian citizens?

Unlikely, that would be illegal in EU.

 

[1nomad]

Tax is on turnover it seems.

Taxation for Micro-Enterprises in Romania

Yes, it is on turnover (max 1 mil EUR), but still not bad. And dividends 5% tax

 

[Martin Everson]

Yes, it is on turnover (max 1 mil EUR), but still not bad. And dividends 5% tax

So on 1mil EUR turnover I pay 30,000 euro a year? And I would have to pay that regardless of whether I made any profit or not on that turnover. It just means that the tax system is not suitable for certain activity such as forex, crypto trading or low margin business unless you are 100% sure you will make a profit greater than 3% with no surprise losses.

Example: I make a loss on 1mil euro turnover in forex trading and yet still having to pay 30,000 euros in taxes. Am I wrong?

 

[1nomad]

It is not suitable for companies with big expenses or even losses but for aff. business it's ideal in my opinion

 

[ScottishJunkie]

You'd still fall into VAT... the threshold is ~25000 EUR or so.. as far as I remember.

 

[skoffs]

and how do you withdraw money from company ?

you earn 50k, pay tax of 1500 and what happens with 48.5k which are there ? can you just withdraw them in ATM ? or what do you have to do ?

I tried contacting several Romanian accountants but they are very lazy in replying. Does anyone have personal experience with this ? on how this can be leveraged vs for example estonia where you pay tax only when you withdraw money ?

 

[1nomad]

dividends

 

[skoffs]

@1nomad but when they have 5% dividends on witholding, you would have to pay that + dividents in your country of residence, right ?

 

[skoffs]

upon some reading, in EUrope you have to pay higher dividens. if romania does have 5% and your country does have lets say 10, you have to pay 5 in romania and then rest up until 10 in your home country ( depending on double tax treaty )

 

[1nomad]

it depends where you live, some countries have 0% tax from dividends, even in Europe - e.g. Malta, Cyprus

 

[JohnLocke]

This sounds like a better alternative to Belize & Seychelles now while these two jurisdictions have been blacklisted by the Cyprus banks. Wonder if it is possible to open accounts in Cyprus for a Romanian company. I will have to do some research on this.

Anyway, I assume that the tax regulations that apply are the same as in any EU country. So private income, money you take out of the company, has to be taxed in your home country. This would mean that only if you keep the money in your company you may avoid taxes.

What privacy does Romania offer? nominees, other?

 

[skoffs]

why would you need cyprus bank ? since you have to report these money it doesnt matter ? for any european company you can have bank account in any eropean bank without problem.

and yes it seems that money you keep in company are fine but when you pay yourself you have to pay either dividend tax or employee tax. Also if you leave them in company and you decide to close your company, you have to tax them at that point.

they have private company register so you are kind of covered but not from authorities. I am currently in talks with 10 companies specialized in accounting in romania and I must say .. those people are very lazy in responding.

 

[negon]

why would you need cyprus bank ? since you have to report these money it doesnt matter ? for any european company you can have bank account in any eropean bank without problem.

Well, the problem I think Admin is pointing out here is that it's not possible for Belize and Seychelles companies to open bank accounts in Cyprus any longer, if Romenia provides any sort of privacy it may be an alternative!