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In Romania, companies which have under 100.000 euro / year income are called microenterprises. Microenterprises have an income tax of 3% which should be paied q

In Romania, companies which have under 100.000 euro / year income are called microenterprises. Microenterprises have an income tax of 3% which should be paied quarterly. If they have at least one employee, the tax is 2%. If they have at least 2 empoyees, the tax is 1%. The tax on dividends is 5% and IT specialists are free from salary taxes. We moved our headquarters to Bucharest in Q1/2014, but this autumn the team is moving to Sibiu, Transylvania! Glad to be here :-)

woodpanel 10y ago
This is actually the information I missed on their website. Could you elaborate on... ... did you move there from outside of Romania? ... if so, how did you incorporate there? Did you gave your BV/GmbH/Ltd/SA just another address or created a new company there, that then bought 100% of your old shop?
- apopa116 10y ago
  We're from the US and were looking for promising European land. No, we incorporated a brand new company(WELOVEHN SRL) not to hassle with bureaucracy. Which is cool from an administrative point of view. Romanian lawyers seem to be fluent in English and we still maintain a productive collaboration.
  - woodpanel 10y ago
    Thanks for your reply! Do you manage from abroad or did you personally relocate as well? Hope your move proves to be a success!
    - apopa116 10y ago
      A quarter of our team was working remotely from Romania, so we decided to relocate. I had plans to go back to CA as soon as everything was in place, but for a while I wanted a vacation... Then it felt wrong to leave and I remained in charge. I'll be back, maybe to get more of my friends in Transylvania with me :-)
fapjacks 10y ago
Interesting! I was wondering this, too. What happens when the income goes up? To, say, a million euro per year? Do you suddenly get hit with large, "European style" taxes (~40-60%)? Or is it fairly small like with microenterprises, just somewhat increasing as you go up?
- apopa116 10y ago
  If the income goes beyond 100k, you pay 16% tax on profit. Also, if you reinvest a part of the profit to acquire IT software or hardware you are saved from paying 16% of that investment.
  - fapjacks 10y ago
    Wow, that is totally reasonable. Actually incredibly cheap by European tax standards.

woodpanel 10y ago

This is actually the information I missed on their website. Could you elaborate on... ... did you move there from outside of Romania? ... if so, how did you incorporate there? Did you gave your BV/GmbH/Ltd/SA just another address or created a new company there, that then bought 100% of your old shop?

apopa116 10y ago
We're from the US and were looking for promising European land. No, we incorporated a brand new company(WELOVEHN SRL) not to hassle with bureaucracy. Which is cool from an administrative point of view. Romanian lawyers seem to be fluent in English and we still maintain a productive collaboration.
- woodpanel 10y ago
  Thanks for your reply! Do you manage from abroad or did you personally relocate as well? Hope your move proves to be a success!
  - apopa116 10y ago
    A quarter of our team was working remotely from Romania, so we decided to relocate. I had plans to go back to CA as soon as everything was in place, but for a while I wanted a vacation... Then it felt wrong to leave and I remained in charge. I'll be back, maybe to get more of my friends in Transylvania with me :-)

fapjacks 10y ago

Interesting! I was wondering this, too. What happens when the income goes up? To, say, a million euro per year? Do you suddenly get hit with large, "European style" taxes (~40-60%)? Or is it fairly small like with microenterprises, just somewhat increasing as you go up?

apopa116 10y ago
If the income goes beyond 100k, you pay 16% tax on profit. Also, if you reinvest a part of the profit to acquire IT software or hardware you are saved from paying 16% of that investment.
- fapjacks 10y ago
  Wow, that is totally reasonable. Actually incredibly cheap by European tax standards.