What are the taxes for corporate entities in Bulgaria and Romania?
Bulgaria`s Tax System:
Flat Tax Rates for all businesses, regardless of their industry or revenue size:
- 10% Corporate Profit Tax
- 0% or 5% Dividend Tax
- 20% VAT
Lowest Labor and Social Security Contributions in the EU:
- Employer social security contributions are calculated only up to the maximum
- social security threshold of €1,900. Any income above this threshold is exempt
- from social security tax.
- The maximum employer social security cost per employee is €630, regardless
of salary level. - Personal income tax for employees is a flat 10%.
Romania: Corporate Tax in 2025
Corporate income tax remains a key component of Romania’s tax system in 2025. The standard rate is 16%, applied to taxable profit, not to net profit.
Microenterprise Regime
Companies with annual revenues under €250,000 (starting in 2025) and at least one employee may qualify for the microenterprise tax regime, which applies tax on revenue instead of profit:
- 1% revenue tax for companies with at least one employee
- Companies without employees can no longer use this regime
If the eligibility conditions are not met—such as exceeding revenue limits, engaging heavily in consulting/management services, or being in the financial sector—the company must switch to the standard corporate tax rate of 16%.
Who pays the 16% corporate tax:
- All companies (SRL, SA, etc.) that don’t qualify as microenterprises
- Banks, insurance companies, gambling operators
- Businesses with revenues over €250,000
- Certain NGOs and public institutions – but only on specific taxable income
