Jurisdiction comparison · 2026

Bulgaria 🇧🇬 vs Romania 🇷🇴: Where Should EU Founders Incorporate in 2026?

Romania's micro regime can beat Bulgaria for tiny businesses, but eligibility keeps narrowing. Above €100K turnover, Bulgaria is materially cheaper and more predictable.

Head-to-head

	Bulgaria 🇧🇬	Romania 🇷🇴
Corporate tax	10% flat	16% (or 1–3% micro)
Dividend tax	5%	10%
VAT rate	20% (0% intra-EU B2B)	19%
Min. share capital	BGN 2 (≈ €1)	RON 1 (≈ €0.20)
Setup time	3–7 business days	1–2 weeks
EU membership	Yes (since 2007)	Yes (2007)
Social contributions	~32% (capped at BGN 4,130/mo)	~37.25%

Why Bulgaria wins

Standard corporate tax: 10% vs 16%
Dividend tax: 5% vs 10%
Romania kept tightening the micro-enterprise regime — €100K cap, sector exclusions
Bulgaria's tax code is more stable; Romania changes rates yearly
Better English-language professional services market in Sofia

When Romania is the better pick

If you qualify for Romania's micro-enterprise regime under €100K turnover and want 1–3%
If you need a much larger domestic market (RO ~19M vs BG ~6.5M)

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