Best residency countries 2026: pick by profile, not by brochure
Nomad, founder, retiree or wealthy family? Taxes, visas and daily life in Europe’s and the Gulf’s favourite bases compared – find your match.
Romania
Romania combines low living costs and a flat 10% income tax with a micro-company regime that taxes small businesses at 1% of turnover. Since 2026 the regime is capped at €100,000 revenue and dividends are taxed at 16%, so bigger earners land in the normal 16% system and the bargain is over.
Our verdict
Great if you run a lean business under €100,000 turnover, want to live in the EU cheaply and don’t mind Romanian paperwork. Skip it if your profits are well above €100,000 – then you pay 16% corporate plus 16% dividend tax – or if you need a stable rulebook: Romania rewrites its tax laws about as often as you renew your phone contract.
Great for
- Small service businesses with turnover below €100,000
- EU citizens who want low living costs inside the EU and Schengen
- Freelancers and developers who value a big tech scene and fast internet
Skip it if
- Companies with six-figure profits looking for a low payout tax
- Non-EU founders without €100,000 to invest or a high remote income
- Anyone who wants to set it up once and never read a tax update again
Key numbers at a glance.
- Micro-company tax
- 1% of turnover
- revenue up to €100,000 (2026), at least one employee
- Corporate tax
- 16%
- above the micro threshold
- Dividend tax / WHT
- 16%
- since 1 Jan 2026; treaties and the EU directive can reduce it
- Personal income tax
- 10%
- flat, plus social contributions
- VAT
- 21%
- since 1 August 2025
- Setup time
- 1–2 weeks
- incl. registered office and notarized documents
- Running cost
- ≈ €1,500–3,000/yr
- accounting, payroll, registered office
- Minimum stay
- 183 days/year
- for tax residency
- Currency
- RON (Romanian leu)
The Nerdy Index.
15 criteria, each scored 0–10 by a published formula or rubric. Pick who you are – the index re-weights what matters for you.
64Nerdy IndexFounder, moving with the company
66Company
63Residence
CompanyResidence
Company 66/100
Tax on distributed profits29.4% 2.7/10
Corporate tax plus dividend withholding on €100,000 profit paid out to a non-resident owner. Transparent entities (US LLC) pay nothing at company level – the owner pays at home, so they get a neutral 5.
Tax on reinvested profits16% 5.4/10
Tax while profits stay in the company (Estonia and Georgia: 0%).
Running cost≈ €2,200 / year 9.1/10
Typical yearly cost to keep a small trading company compliant: registered office, accounting, tax filings, audit if mandatory, government fees. Excludes local staff and office rent.
Context: Monthly bookkeeping and filings (roughly €100–200 a month for a small SRL), payroll for the one employee the micro regime requires, and a registered-office contract. The employee’s salary itself is not included.
Setup speed & remote formation≈ 7 working days 8.2/10
Typical working days from signed documents to a registered company. +1 point (max 10) if it can be done fully remotely.
Context: ONRC registration itself takes a few days; preparing the registered-office proof, notarized specimen signature and apostilled documents adds a week. It can be done by power of attorney without travelling.
Banking accessNerdy assessment 7/10
How easy it is for a foreign-owned company to open and keep a business account (local bank or regulated EMI) that works for international payments.
Our assessment: Romanian banks (Banca Transilvania, BCR, ING) open accounts for foreign-owned SRLs, usually with one visit and some weeks of KYC. Workable, but rarely fully remote.
Reputation & treaty network89 treaties, on no EU or FATF list 10/10
Number of double tax treaties in force, minus penalties for blacklists that make banks and tax offices nervous: EU list of non-cooperative jurisdictions (Annex I), EU watchlist (Annex II), FATF grey list.
Context: Romania has one of the larger treaty networks in the EU and is on none of the EU or FATF lists; banks see it as a normal, if bureaucratic, EU jurisdiction.
Substance burdenNerdy assessment 6/10
How much real presence (director, office, staff, board meetings) the company needs locally to be respected as tax resident there and to keep the bank happy. Higher score = lighter burden.
Our assessment: You need a real registered-office contract, and the 1% micro regime requires at least one employee. Managing the company from abroad risks home-country taxation, as everywhere.
Residence 63/100
Personal tax for a new resident16% 6.4/10
Effective tax a newly arrived resident pays on €100,000 of income from their own (foreign or local) company, using the best regime realistically available to an entrepreneur (non-dom, flat tax, territorial, special regime). Social security excluded.
Context: Resident owner taking €100,000 of profit as dividends from a Romanian SRL: 16% dividend tax since 2026 (plus a health contribution of 10% on a capped base, social security excluded here). There is no special regime for newcomers.
Residency accessNerdy assessment 4/10
How realistic it is for a non-EU entrepreneur to get a residence permit that also gives tax residency: requirements, cost, time, approval odds. EU citizens usually have it easier – noted in the reason.
Our assessment: EU citizens just register. Non-EU founders need either €100,000 invested plus 10 jobs, or about €5,400 a month of foreign income for the nomad visa – which doesn’t cover a Romanian company.
Minimum stay183 days / year 4/10
Days per year you need to spend there to keep your permit and your tax residency (whichever is stricter, using the most flexible programme).
Context: You become Romanian tax resident with 183 days in 12 months or with your domicile or centre of vital interests in Romania. Residence permits expect Romania to be your home.
Cost of living45.5 (Bucharest) · Bucharest 7.7/10
Numbeo Cost of Living Index (excl. rent, New York = 100) for the city most expats choose.
Context: Bucharest is one of the cheapest EU capitals for groceries, restaurants and services; Cluj-Napoca is similar (46.2).
Safety71.5 (Bucharest) · Bucharest 7.2/10
Numbeo Safety Index for the same city (0–100, higher is safer).
Context: Bucharest is safer than its reputation – on Numbeo it rates safer than Paris, Rome or London. Traffic is the bigger daily risk.
Rule of law & stability60th percentile 6/10
World Bank Worldwide Governance Indicators, Rule of Law percentile rank (0–100). Measures how predictable courts, contracts and property rights are.
Context: Courts and contracts work, but slower and less predictably than in Western Europe (WGI 2025 Rule of Law score 63.5, percentile rank among 215 economies).
English in daily life & businessEF EPI 605 (very high) 8.2/10
EF English Proficiency Index score. Countries where English is an official or everyday business language count as 700.
Context: Romania ranks 11th worldwide on the EF index; in Bucharest and Cluj you can work, bank and socialize in English. Officials and notaries still work in Romanian.
Mobility & long-term optionsNerdy assessment 8/10
What the residence gives you beyond the country: Schengen/EU access, permanent residence and citizenship path, passport strength of a future citizenship, dual citizenship allowed.
Our assessment: Full EU and Schengen member since 2025. Citizenship after eight years (five if married to a Romanian) with a language and culture test; dual citizenship is allowed.
Numbers checked October 2026. Click any row for the formula, our reasoning and the source. How the Nerdy Index works
Residency & visa routes.
EU registration certificate
EU/EEA citizens can stay three months without formalities and then register their residence with the General Inspectorate for Immigration (IGI). Simple, cheap and the basis for tax residency.
Digital nomad visa
For non-EU remote workers employed by, or owning, a company outside Romania, earning at least three times the Romanian average gross salary (about RON 27,600, roughly €5,400 a month in 2026) for the last six months. Up to one year, renewable; foreign income is tax-exempt only while you stay under 183 days.
Temporary residence for commercial activities
For non-EU shareholders and managers of a Romanian company: approved business plan, an investment of at least €100,000 (SRL) and at least 10 jobs within 12 months. One-year permits, three years from €500,000 or 50+ jobs.
Why Romania5
- 1% turnover tax for small companies up to €100,000
- Flat 10% income tax and a 16% dividend tax without progression
- Low cost of living – Bucharest is among the cheapest EU capitals
- EU and full Schengen member, 89 tax treaties
- Strong English skills, a big tech scene and very fast internet
Watch out for5
- Tax rules change almost every year – the micro cap fell from €500,000 (2024) to €100,000 (2026)
- Micro regime needs a paid employee and allows only one micro-company per owner
- Dividend tax rose to 16% in 2026, plus a capped 10% health contribution
- Bureaucracy, notaries, stamps and Romanian-language paperwork
- Non-EU residence routes are expensive or income-heavy
Romania is the EU’s best-kept secret for small businesses. It also has the EU’s most restless tax legislator. A micro-company pays 1% of its turnover, income tax is a flat 10% and Bucharest costs less than most EU capitals. The catch: the rules move every single year. In 2026 the micro cap dropped to €100,000 and dividend tax jumped to 16%. Here’s what still works, until the next Official Gazette.
Is it for you?#
Romania is a numbers game, and the number is €100,000. Below it, Romania is one of the cheapest places in the EU to run a company and live. Above it, you’re in a solid but unspectacular 16% + 16% country, and the bargain is over.
You win if:
- Your business is lean. Consultants, developers, designers and agencies with turnover under €100,000 pay 1% of revenue instead of 16% of profit. With high margins, that gap pays your rent.
- You’re an EU citizen who wants to live cheaply. Registration is a formality, Schengen travel works since 2025, and rent, food and services cost far less than in Germany or Austria. Your Vienna rent buys a very nice flat here.
- You like tech hubs. Bucharest and Cluj-Napoca have large developer communities, excellent English and some of the fastest internet in Europe.
You lose if:
- Your profit is well above €100,000. Then it’s 16% corporate tax plus 16% dividend tax – about 29% combined. That’s not a tax haven, that’s Tuesday in Western Europe.
- You’re a non-EU founder on a budget. The investor route asks for €100,000 and ten jobs; the nomad visa needs about €5,400 a month and doesn’t cover a Romanian company.
- You need predictability. The micro regime has changed thresholds, rates or conditions in almost every recent year. Budget for a good accountant who reads the Official Gazette so you don’t have to.
The company#
Entity types that matter#
- SRL (societate cu răspundere limitată). The standard limited company. Since December 2025 new SRLs need at least RON 500 share capital (RON 5,000 once turnover passes RON 400,000).
- PFA (authorized individual). A sole-trader status for Romanian residents; taxed at 10% on net income plus social contributions. Fine for freelancers who live there, not for international structures.
- SA (joint-stock company). For larger businesses and investors.
The micro-company regime (2026)#
An SRL pays 1% of turnover instead of 16% corporate tax if it:
- had revenue of no more than €100,000 in the previous year (the cap was €500,000 in 2024 and €250,000 in 2025),
- has at least one employee,
- and its shareholders with more than 25% don’t use the micro regime in another company.
Cross €100,000 during the year and the company switches to 16% profit tax. No grace period, no second chance. The 3% rate for certain activities is gone – it’s a single 1% now.
Worked example: €100,000#
At €100,000 profit you’re already above the micro cap, so the standard rules apply:
| Step | Standard SRL | Micro SRL (€95,000 turnover, €80,000 profit) |
|---|---|---|
| Company tax | €16,000 (16% of profit) | €950 (1% of turnover) |
| Available for dividends | €84,000 | €79,050 |
| Dividend tax 16% | €13,440 | €12,648 |
| Health contribution (capped, if resident) | ≈ €1,900 | ≈ €1,900 |
| Net to you | ≈ €68,700 | ≈ €64,500 |
| Total burden | ≈ 31% | ≈ 19% |
The micro column also needs a paid employee. That salary is a real cost the table politely ignores, and it wipes out part of the gap. For non-resident owners, the 16% dividend tax is withheld at source; treaties can reduce it and the health contribution doesn’t apply. Try your own numbers in the tax calculator.
Setup and timeline#
Registration with the Trade Register (ONRC) takes a few days once documents are complete. The registry isn’t the problem. The paperwork around it is: a registered-office contract, a notarized specimen signature, apostilled and translated documents for foreign founders. With a power of attorney you don’t have to travel. Expect one to two weeks in total, most of it spent waiting for stamps.
Running costs#
Budget roughly €1,500–3,000 a year for bookkeeping, monthly and annual filings, payroll for your employee and the registered office. Romanian accounting is monthly and detailed, and the tax office likes it that way. E-invoicing (RO e-Factura) is mandatory for B2B invoices.
Banking#
Banca Transilvania, BCR, ING and others open accounts for foreign-owned SRLs, usually after a branch visit and a few weeks of KYC questions you already answered twice. EMIs work for international payments but most founders keep a local bank for taxes and salaries. See our offshore banking guide.
Substance#
A Romanian SRL is taxed in Romania if it’s registered or effectively managed there. If you live abroad and run it from home, your home country will likely claim it – see place of management. The micro regime’s employee requirement adds a bit of real substance by design. Accidental good policy.
Living there#
Residency routes#
| Route | Who | Key requirement | Duration |
|---|---|---|---|
| EU registration certificate | EU/EEA citizens | Register with IGI after 3 months | Up to 5 years, then permanent |
| Digital nomad visa | Non-EU remote workers | 3× average gross salary (≈ €5,400/month in 2026), employer or company abroad | 1 year, renewable |
| Commercial activities | Non-EU company owners | €100,000 investment (SRL) and 10 jobs within 12 months | 1 year; 3 years from €500,000 |
Digital nomads are exempt from Romanian tax on their foreign income only while they stay under 183 days in 12 months – after that, normal residence rules apply.
Personal tax#
Salaries and self-employment income are taxed at a flat 10%, but the flat rate is the headline, not the bill: social contributions are heavy (25% pension, 10% health on salaries). Dividends are taxed at 16% and trigger a 10% health contribution on a capped base (up to 24 minimum salaries). There’s no special regime for newcomers. Everyone gets the same deal, which is refreshing.
Days and residency#
You become Romanian tax resident with 183 days in any 12 months, or when your domicile or centre of vital interests is in Romania. Make sure you actually leave your old tax home – see tax residency explained.
Healthcare, cost of living and daily life#
Paying the health contribution gets you into the public system (CNAS); most expats also use private clinic subscriptions such as Regina Maria or MedLife, which are affordable by Western standards. Numbeo puts Bucharest at 45.5 on its cost-of-living index (excluding rent) – among the lowest of any EU capital – and rates it safer than London, Paris or Rome. Expect great food, a lively café scene, traffic that treats lanes as suggestions, and bureaucracy that rewards patience and a local accountant.
The catches#
Read this before you register
01
Rules change constantly.
Micro cap: €500,000 (2024) → €250,000 (2025) → €100,000 (2026). Dividend tax: 5% → 8% → 10% → 16% in a few years. Plan with a buffer, and assume next year’s numbers will be different.
02
The €100,000 cliff.
Cross it during the year and the company moves to 16% profit tax for the rest of the year.
03
One micro per owner.
Shareholders with more than 25% can only use the micro regime in one company.
04
Employee required.
No employee, no 1%.
05
Home-country taxation.
Managed from Germany means taxed in Germany; low-taxed passive income may fall under CFC rules.
06
Exit tax.
Moving with shares in a German company can trigger German exit tax – see the exit tax guide.
07
Capital and payout rules.
Minimum capital is back, and weak balance sheets block dividends since Law 239/2025.
Step by step#
Company and move
Check the numbers
Turnover under €100,000 and a high margin? The micro regime works. Otherwise compare 16% + 16% with alternatives in the Jurisdiction Finder.
Sort out residence
EU citizens register with IGI after arrival. Non-EU founders check the investor or nomad route first.
Prepare documents
Passport copies, apostilles and translations, registered-office contract, specimen signature, power of attorney if you’re not there.
Register the SRL
Name check and filing with ONRC; registration follows within days.
Bank, employee, accountant
Open the account, hire your employee if you want the micro regime, and sign up an accountant for monthly filings.
Leave your old tax home properly
Deregister, check exit tax, move your life. In that order.
FAQ#
Is the 1% micro tax still available in 2026?
Yes, for SRLs with revenue up to €100,000 in the previous year, at least one employee and no other micro-company controlled by the same majority shareholder.
How much tax do I pay on dividends in 2026?
16%, for residents and non-residents. Residents also pay a 10% health contribution on a capped base; treaties can reduce the rate for non-residents.
Can I run a Romanian SRL without living in Romania?
Legally yes. For tax, what matters is where it’s managed – run it from a high-tax country and that country will likely tax it.
Is Romania in Schengen?
Yes, fully since 1 January 2025, including land borders.
Want someone to check whether the micro regime fits your business model? Book a strategy session. This guide is general information, not tax or legal advice.
Sources#
- PwC Worldwide Tax Summaries – Romania, corporate income
- PwC Worldwide Tax Summaries – Romania, withholding taxes
- EY – Romanian tax changes (Law 141/2025)
- Kinstellar – fiscal changes August 2025 / January 2026
- CMS – Law 239/2025 corporate law changes
- ONRC – National Trade Register Office
- IGI – General Inspectorate for Immigration
- Law 141/2025 on fiscal-budgetary measures (ANAF)
- ANAF – National Agency for Fiscal Administration
Sources & fact check.
Every number on this page comes from one of these. Last checked October 2026. Tax law changes – confirm with a licensed advisor before acting. Nothing here is tax or legal advice.
- Official Law 141/2025 on fiscal-budgetary measures (ANAF) single 1% micro rate and €100,000 cap from 2026, 16% dividend tax static.anaf.ro
- Official ANAF – National Agency for Fiscal Administration tax administration, micro-company rules anaf.ro
- Official ONRC – National Trade Register Office company registration procedure onrc.ro
- Official IGI – General Inspectorate for Immigration EU registration, residence permits igi.mai.gov.ro
- Official Romanian MFA – long-stay visa for digital nomads digital nomad visa requirements evisa.mae.ro
- Advisor PwC Worldwide Tax Summaries – Romania, corporate income 16% CIT, 1% micro regime, €100,000 cap, conditions taxsummaries.pwc.com
- Advisor PwC Worldwide Tax Summaries – Romania, withholding taxes 16% dividend WHT, EU exemption, treaty list taxsummaries.pwc.com
- Advisor EY – Romanian tax changes (Law 141/2025) 16% dividend tax from 2026, VAT 21% ey.com
- Advisor Kinstellar – fiscal changes August 2025 / January 2026 VAT, dividend tax, CASS on dividends kinstellar.com
- Advisor CMS – Law 239/2025 corporate law changes RON 500 minimum capital, dividend restrictions cms.law
- Index EU list of non-cooperative jurisdictions not on Annex I or II consilium.europa.eu
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