View of Bucharest, capital of Romania

Moving to Romania

The Latin country of the East — flat tax, micro-corporate tax and unbeatable cost of living

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European UnionLeu (RON)Flat tax 10%Micro-corporate 1-3%Bucharest-50% vs Paris

Factsheet: Romania

Romania is an Eastern European country of nearly 19 million people, an EU member since 2007 and part of the Schengen area since January 1, 2024. A Latin country (Romanian is a Romance language directly descended from Latin, close to French and Italian), Romania offers a rare cultural affinity for French-speaking expats. For entrepreneurs or freelancers seeking to combine European legal protection, ultra-competitive taxation and one of the lowest costs of living in the EU, Romania is one of the most underestimated destinations in Europe today.

🇷🇴
Romania
The Latin country of the East — flat tax, micro-corporate tax and unbeatable cost of living
Capital
Bucharest
Official language
Romanian (Latin language, close to French and Italian!)
Currency
Romanian Leu (RON), 1 € ≈ 4.97 RON
Population
~19 million
Timezone
UTC+2 (UTC+3 in summer)
🇪🇺 European Union
Yes, since 2007 + Schengen since 2024
Digital nomad visa
EU free movement, no visa required
Cost of living (vs Paris)
~45 to 50% cheaper

Why choose Romania?

Romania combines unmatched advantages in Europe: one of the lowest tax rates on the continent with a micro-corporate regime that has no equivalent, a secure EU + Schengen framework, a remarkably low cost of living and a Latin cultural affinity that makes settling in easier. Here are the six essential reasons.

🇪🇺
EU + Schengen, full protection
Free movement for EU citizens, European legal protection, border-free travel since Schengen accession in January 2024.
📊
Income flat tax at only 10%
One of the lowest in the EU: fixed rate, no progressive brackets, simple filing. A massive tax gain compared to the 41-45% top marginal rates in many Western countries.
🏢
Revolutionary micro-corporate tax: 1-3% on revenue
If your Romanian SRL qualifies for the micro-corporate regime, tax is calculated on revenue, not profit. 1% with an employee, 3% without. No equivalent anywhere else in Europe.
🗣️
Latin affinity — language and mentality
Romanian is a Latin language close to French: a French speaker can learn Romanian in a few months. The warm Latin mentality makes integration much easier.
💰
Ultra-low cost of living, -50% vs Paris
Rents in Bucharest between 400 and 700 EUR for a 1-bed, local restaurant meal for 4-6 EUR, fiber 1 Gbps at 10 EUR/month. Among the cheapest in the entire EU.
🌆
Rapidly improving quality of life
Cosmopolitan Bucharest, dynamic cultural life, fairytale Transylvania, Black Sea, Carpathian Mountains within reach. A country of many faces that positively surprises.

Visa & Residence

As an EU citizen, you benefit from free movement and can enter, stay and work freely in Romania. After three months, a simple registration formality is required.

EU free movement, IGI registration

After 3 months of stay, all EU nationals must register with the IGI (Inspectoratul General pentru Imigrari). This is a simple declaration, not a permit application. Required documents are minimal: valid passport, proof of accommodation (lease or hosting certificate), and optionally proof of activity or resources. A residence certificate is issued quickly.

Duration
Unlimited (EU free movement)
Min. income
Timeline
1 to 2 weeks
Target
~50 RON (~10 EUR)
Good news: no minimum income requirement is imposed on EU citizens to settle in Romania. The procedure is much lighter than what foreigners face in most Western countries. A local accountant can handle all formalities (IGI registration + tax code + company formation) for 200 to 400 EUR all-inclusive.

Cost of living

Romania ranks among the cheapest countries in the entire European Union. The gap with Paris remains considerable (45 to 50% cheaper in overall cost of living) and this applies to all spending categories: rent, groceries, restaurants, transport, internet. For a freelancer or entrepreneur earning in euros, this represents a radical improvement in purchasing power.

Estimated monthly budget: 900 - 1,700 EUR/month

Expense Monthly amount
1-bed apartment, Bucharest city center 400 - 700 EUR
1-bed apartment, Cluj-Napoca 350 - 550 EUR
Groceries 150 - 250 EUR
Dining out (local meal 4-6 EUR, mid-range 12-20 EUR) 60 - 120 EUR
Transport (metro + tram Bucharest) 15 - 25 EUR
Fiber internet 1 Gbps 8 - 15 EUR
Private health insurance 30 - 80 EUR

📊 Taxation

Romania offers an exceptional tax framework by European standards: a 10% income flat tax, a micro-corporate regime on revenue at 1-3% (not on profit) and dividends taxed at only 8%. The France-Romania tax treaty of 1974 prevents double taxation. A combination rarely matched in the EU.

Income tax (IR)
10% flat tax on net income after social contribution deductions. No progressive brackets.
Micro-corporate tax on revenue
1% with ≥1 employee · 3% without employees · Calculated on revenue, NOT on profit! 2026 threshold: 100,000 EUR in revenue.
Dividend tax
8% flat, no progressive brackets. Standard corporate tax: 16% on profit if micro-corporate threshold is exceeded.
France-Romania tax treaty
Treaty of 1974. Double taxation avoided for Romanian tax residents on their French-sourced income.
VAT
VAT registration threshold: 88,500 RON (~17,800 EUR) annual revenue. Standard rate: 19%. Reduced rate 9% on certain food products, medications, books.
Practical micro-corporate example
For 100,000 EUR revenue with 80% margins, micro-corporate tax at 1%: 1,000 EUR · Standard corporate tax 25% (France): 20,000 EUR. Potential savings: ~19,000 EUR on this scenario.

🚀 For entrepreneurs

Romania offers two main legal forms for entrepreneurs (the SRL and the PFA), each suited to different profiles. With a booming tech ecosystem in Cluj and Bucharest, qualified talent and a secure EU framework, it attracts a growing number of European founders.

SRL — the Romanian company
The equivalent of a limited company. Symbolic minimum capital of 1 RON (~0.20 EUR). Creation in 3 to 7 days. Access to the 1-3% micro-corporate regime on revenue. Mandatory accounting (accountant required, ~100-200 EUR/month).
PFA — the sole trader
Persoana Fizica Autorizata, the equivalent of a sole proprietorship. Ultra-simple to create. 10% income tax after a 40% flat-rate deduction on income. Social contributions CAS (25%) + CASS (10%).
Banking — fast and accessible
BCR, BRD (Societe Generale subsidiary), ING Romania, accounts opened quickly upon presentation of passport and local address. Wise and Revolut work perfectly.
Tech ecosystem — Cluj and Bucharest
Cluj-Napoca = Romania's Silicon Valley. Many IT outsourcing companies, qualified tech talent, coworking hubs. Bucharest = booming regional business market.

❤️ Healthcare

Romania's public healthcare system remains underfunded and public hospitals have uneven infrastructure. However, the private sector has undergone a remarkable transformation: major Romanian private clinics (Regina Maria, Medicover and MedLife) offer European-quality care at very accessible prices (specialist consultation: 20 to 40 EUR).

Regina Maria
Leading private clinic network, nationwide coverage, European quality.
Affordable medications
Accessible pharmacies, generics widely available.
Consultation 20-40 EUR
Private specialists, European quality at very accessible prices.
Supplementary health insurance recommended
~30-80 EUR/month depending on age and coverage. Medicover and MedLife offer very comprehensive annual subscriptions for ~500-800 EUR/year.

Where to live

Romania is a country with many faces: cosmopolitan capital, Transylvanian Silicon Valley, medieval towns, Black Sea and Carpathian Mountains. Each city has its own personality and suits different profiles.

Bucharest
Bucharest
Lively nightlife, upscale neighborhoods Floreasca/Dorobanti/Aviatorilor, many expats, English-language services, restaurants from around the world. 1-bed rent: 400-700 EUR/month.
Best for: Business, entrepreneurs, families
Cluj-Napoca
Cluj-Napoca
Leading tech hub, students, startups, Transylvania. Young and dynamic city, high quality of life, cheaper than Bucharest. 1-bed rent: 350-550 EUR/month.
Best for: Tech, startups, remote workers
Timisoara
Timisoara
Multicultural, cosmopolitan, charming. Austro-Hungarian architecture, cultural life, border with Serbia and Hungary. European Capital of Culture 2023. Rent: 250-450 EUR.
Best for: Families, culture lovers, remote workers
Brasov
Brasov
Skiing 20 min away, Dracula's Castle, calm and nature. Magnificent medieval setting. Ideal for families and nature-loving remote workers. Rent: 300-500 EUR.
Best for: Families, nature lovers, skiing
Sibiu and Oradea
Sibiu and Oradea
Authentic living, exceptional historic centers, ultra-low cost. For those seeking total immersion and tranquility. Rent: 200-350 EUR.
Best for: Tight budget, authenticity

Drawbacks to know

📉
Micro-corporate threshold lowered to 100K EUR in 2026
The micro-corporate regime eligibility threshold drops from 250,000 EUR (2025) to 100,000 EUR in revenue in 2026. Above this, you switch to the standard 16% corporate tax on profit; the advantage shrinks for revenues above 100K EUR.
🏛️
Persistent corruption and bureaucracy
ANAF (Romanian tax authority) can be opaque in its procedures. Corruption is still present in some sectors. A good local accountant is essential for navigating effectively.
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Poor road infrastructure
Highways are scarce, national roads in poor condition in some regions. Trains are slow outside the Bucharest-Cluj route. The country is catching up, but slowly.
❄️
Cold winters in Bucharest and the mountains
Bucharest can experience spells of -10/-15 degrees C in January-February. Heavy snow in the Carpathians. Less extreme than the Baltics, but worth considering.
🗣️
Language barrier for deep integration
Even though Romanian is an accessible Latin language for French speakers, fluency remains essential for deep professional and social integration outside expat and tech circles.

Frequently asked questions

How does Romania's micro-corporate tax work in practice? +
If your SRL (Romanian company) has annual revenue below 100,000 EUR (2026 threshold), it is automatically subject to the micro-corporate regime. The tax is then 1% of revenue if the company employs at least one person (including the managing director as employee), or 3% if there are no employees. This is calculated on gross revenue, not profit. For 80,000 EUR revenue with 80% margins, corporate tax would be only 800 EUR instead of ~12,800 EUR under the standard 16% rate. This regime has no equivalent in the EU.
Is Romanian easy to learn for an English speaker? +
Romanian is a Romance language directly descended from Latin, giving it a natural proximity to French, Italian and Spanish. Shared vocabulary is estimated at 70-75% with other Romance languages. An English speaker with some background in Romance languages can reach conversational level in 3 to 6 months of regular practice. It is one of the most accessible languages in Eastern Europe for speakers of Western European languages. In expat, tech and tourist circles, English is widely sufficient for daily life.
Bucharest or Cluj — which city to choose? +
Bucharest is the obvious choice if you want a bustling capital with all amenities, a large international community, nightlife and direct flight connections to major European cities. Cluj-Napoca is better suited to tech entrepreneurs, startup profiles and those who prefer a human-scale city that is younger, greener and cheaper. In short: business and conveniences -> Bucharest; tech and quality of life -> Cluj.
How much do you need to live well in Romania? +
A comfortable standard of living in Bucharest is achievable for 1,200 to 1,800 EUR net per month: a well-located 1-bed (500-600 EUR), groceries (200 EUR), dining out (150 EUR), transport (20 EUR), internet + phone (25 EUR), health insurance (50 EUR), leisure and contingencies (200 EUR). In Cluj or secondary cities, 900-1,300 EUR is enough for the same comfort level.
Is Romania safe to live in? +
Romania is generally a safe country to live in. Bucharest and Cluj rank in European statistics among mid-sized cities with low violent crime rates. Expats report feeling safe in residential neighborhoods and city centers. The perceived quality of life in terms of safety is notably better than the country's historical reputation might suggest.

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