Bulgaria (Svobodna Profesiya) vs. Romania (PFA Sistem Real) — 2026 Tax Comparison
Head-to-head 2026 comparison between Southeast Europe’s two flagship 10% flat-tax freelance hubs: Eurozone Bulgaria’s BULSTAT Svobodna profesiya vs. Romania’s PFA Sistem Real across 30k–200k+ € annual B2B revenue.
- Automatic 25%/40% Expenses vs. Documented Sistem Real: Bulgaria deducts 25% (or 40% author/IP) of gross revenue automatically with zero receipts before 10% PIT (7.5% / 6.0% effective tax above the social cap); Romania’s PFA Sistem Real taxes 100% of profit minus documented business expenses and CAS/CASS at 10%.
- Social Security Caps: Bulgaria freezes standard 27.8% social at 7,306.25 €/yr above the 26,281.48 € base (~35k € gross); Romania caps 25% CAS pension at 24,300 RON (~4,880 €) and 10% CASS health at 29,160 RON (~5,855 €) = ~10,735 €/yr combined above ~58.6k €.
- Currency, VAT & Filing Rhythm: Bulgaria uses native EUR (from Jan 1, 2026) with a 51,130 € domestic VAT cap and monthly Declaration 1 filings; Romania uses RON with a higher 395,000 RON (~79.3k €) domestic TVA cap and a single annual Declarația Unică.
- Which has lower total tax and social contributions in 2026: Bulgaria or Romania PFA?
- For B2B contractors with low actual expenses, Bulgaria’s Svobodna profesiya beats Romania PFA at mid-to-high revenues: at 60,000 €, Bulgaria keeps ~48,924 € net (18.5% burden) vs. ~44,339 € net in Romania (26.1% burden), and at 100,000 € Bulgaria jumps to #1 in the EU at ~85,924 € net (14.1% burden) vs. ~80,339 € in Romania (19.7% burden) thanks to its uncapped 25% expense deduction and lower 7,306 €/yr social cap.
- When can Romania PFA Sistem Real be simpler or competitive vs. Bulgaria?
- Romania PFA requires only one annual Declarația Unică tax/social payment (due May 25 of the following year, with zero monthly payroll-style declarations), offers a higher ~79,317 € (395,000 RON) domestic VAT-free threshold vs. Bulgaria’s 51,130 €, and avoids CAS pension entirely below 12 minimum wages (~9,759 € net income).
- How do child and non-working spouse rules differ between Bulgaria and Romania in 2026?
- Bulgaria grants ZDDFL Art. 22v child tax deductions (saving up to 306.78 € / 613.55 € / 920.33 € in PIT for 1/2/3+ children) and charges 278.26 €/yr NZOK for an uninsured spouse. Romania’s PFA has 0 € child tax credits and charges 2,430 RON/yr (~488 €) to insure a non-working spouse after repealing free coasigurat status.
Official 2026 Statutory Sources & Verification
Verified against official 2026 statutory tax & social contribution rules (Last verified: Nov 2026).