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Bulgaria vs. Romania – Where Should You Register Your Company in 2025?
If you’re an entrepreneur looking to establish a company in Eastern Europe, two countries likely top your list: Bulgaria and Romania. Both are EU members, offer strategic access to European markets, and boast competitive tax regimes. But when you dig deeper, the differences become more significant – especially in 2025.
Why Bulgaria Is a Top Choice in 2025
Bulgaria continues to attract international entrepreneurs, freelancers, and digital nomads due to its simplicity, predictability, and low operating costs. Here’s why more founders are choosing Bulgaria:
- Flat 10% corporate tax – no industry restrictions, no hidden clauses.
- Flat 10% personal income tax – fixed, transparent, and stable.
- Low business expenses – accounting, labor, and rent are more affordable than in Romania.
- Quick and remote-friendly setup – register a company in just a few days without visiting the country.
- Upcoming euro adoption in 2026 – added financial stability and EU integration.
The Romanian “Microenterprise” Trap
Romania advertises an appealing 1% turnover tax for microenterprises – and at first glance, it sounds like a great deal. However, this regime is riddled with exceptions and conditions that disqualify many small businesses, especially freelancers and consultants.
- You must have at least one full-time employee.
- Your annual revenue must remain below €500,000.
- No more than 20% of your income can come from consulting or management services.
- Your company must not share ownership with another microenterprise (over 25% ownership).
- Regime can be lost mid-year if you break any rule – retroactively.
- Once disqualified, your tax rate jumps to 16% on profits.
As a result, many foreign founders fall into the trap of the 1% promise, only to face unexpected tax hikes and compliance issues months later.
Comparison Table: Bulgaria vs. Romania (2025)
| Criteria | Bulgaria | Romania |
|---|---|---|
| Corporate Tax | 10% flat | 1% (microenterprise) 16% (standard) |
| Employee Requirement | No | Yes – at least 1 full-time |
| Revenue Limit for Lower Tax | None | €500,000 |
| Consulting/Service Restrictions | None | Max 20% of income |
| Stability of Regime | High | Conditional and revocable |
Who Should Register a Company in Bulgaria?
Bulgaria is ideal for:
- Freelancers and consultants
- IT specialists and remote teams
- Digital nomads and online business owners
- E-commerce sellers and dropshippers
The Bulgarian regime offers one of the simplest and most stable environments in the EU for location-independent entrepreneurs. There are no arbitrary rules based on your business model or ownership structure.
Work with a Local Expert You Can Trust
At ASB Accounting Services Bulgaria, we help foreign founders set up and run their businesses entirely remotely – with full support in English and no hidden complications.
We provide:
- Free initial consultation
- Fast company formation in Bulgaria
- Full-service accounting and tax compliance
If you want peace of mind, cost efficiency, and clear rules – Bulgaria is your smart choice for 2025.
This information is provided for general guidance only and does not constitute tax, accounting, or legal advice. Each situation requires individual review.