[apopa116]

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]

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]

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]

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]

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]

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]

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]

Wow, that is totally reasonable. Actually incredibly cheap by European tax standards.