Bulgaria vs Romania: which to choose in 2026

6 min read · Published 7 October 2026

Both countries are in the EU and Schengen and charge 10% income tax. From 2026 Bulgaria uses the euro and grants a passport by origin in 1-2 years, while Romania allows dual citizenship and charges small businesses 1% of turnover. We compare residence, the passport, taxes and costs.

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Key facts	Verdict
Income tax	10% in both countries
Currency	Bulgaria - euro, Romania - leu
Dual citizenship	Romania - yes, Bulgaria - by origin
Small business tax	Romania 1% of turnover, Bulgaria 10% of profit
Faster passport by roots	Bulgaria: 1-2 years
Schengen	both countries since 2025

Data checked: 07.10.2026

In short: who each country suits

Bulgaria - for those with Bulgarian roots and those who want to live by the sea in a euro country with 10% tax.
Romania - for entrepreneurs with modest turnover and those who want to keep their current passport on naturalisation.
For work in a big city with international companies the two capitals are comparable, and central rents in Sofia and Bucharest are close.

Bulgaria and Romania are Danube neighbours that joined the EU together and, in 2025, the Schengen area. Both charge one of the lowest income taxes in Europe - 10%. But from 2026 Bulgaria switched to the euro, while Romania kept the leu and bet on small business with a 1% turnover tax.

Below is a 15-row table and five key differences: residence, the path to citizenship, taxes, cost of living and everyday life. Amounts are in US dollars at the European Central Bank rate on the check date.

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Key facts in one table

Parameter	Bulgaria	Romania
Euro and Schengen	euro from 2026, Schengen from 2025	Romanian leu, Schengen from 2025
Grounds for residence	work, business, pension, family	work, business, remote work, family, studies
Citizenship	after 5 years of permanent residence; 1-2 years by Bulgarian origin	8 years, 5 for spouses of citizens; years of queue by Romanian roots
Current passport	release required for ordinary naturalisation, kept by origin	can be kept
Who is a tax resident	more than 183 days in any 12 months; days of entry and exit count as days in the country	more than 183 days in any 12 consecutive months ending in this year
Income tax	10%	10% plus pension and health contributions
Business tax	10% on company profit	16% on profit, small companies 1% of turnover up to €100,000
Single person budget with rent	$1,700-2,500 a month (Sofia)	$1,300-2,300 a month (Bucharest)
One-bedroom flat in the centre	$620-1,010 (Sofia)	$700-1,100 (Bucharest)
Family with a child	from $3,200 a month	from $2,800 a month
Country's passport: visa-free travel	140 countries visa-free and 28 with visa on arrival	141 countries visa-free and 27 with visa on arrival
Sea	the Black Sea, Burgas and Varna	the Black Sea, Constanta
Language	Bulgarian, Cyrillic script	Romanian, Latin script
Climate	hot summers, mild winters by the sea	hot summers, cold winters

Bulgaria and Romania are chosen by the path to an EU passport and the tax on your business

Both countries are in the EU and Schengen and both charge 10% income tax, but the path to a passport and business taxes differ. The usual mistakes: gathering documents on Bulgarian or Romanian origin without archive proof and being refused, setting up a company without working out whether profit or turnover tax is better, and ignoring that ordinary naturalisation in Bulgaria requires leaving your previous citizenship. We check the grounds, prepare the documents and handle the case until the passport.

The cost of support depends on the country, the ground and your family; a manager will calculate it in the chat.

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Residence: where it is easier to get

In Bulgaria a non-EU foreigner gets residence through work, business, a pension or family, and the ground sets both the budget and the timeline. The lease must be suitable for address registration.

In Romania residence is granted through work, business, family, studies and the remote worker visa, which requires income of at least three national average wages, about €5,550 a month, about $6,300.

Citizenship: where it is faster

Bulgaria grants citizenship by Bulgarian origin in 1-2 years, keeping your current passport. Ordinary naturalisation requires 5 years of permanent residence and leaving your previous citizenship, except for EU citizens and spouses of Bulgarian citizens.

Romania grants citizenship after 8 years of residence, 5 for spouses of citizens, and by Romanian roots through a queue at the National Citizenship Authority that takes years. Romania allows dual citizenship.

Taxes: where they are lower

In Bulgaria income tax and corporate tax are both 10%, and freelancers pay 10% of income after deducting statutory expenses. You become resident after 183 days in any 12 months.

In Romania income tax is also 10%, but employees also pay pension and health contributions. Companies pay 16% on profit, and small ones with turnover up to €100,000 pay 1% of turnover, which many find cheaper.

Cost of living: where it is cheaper

A single person in Sofia needs $1,700-2,500 a month including rent, in Bucharest $1,300-2,300 based on 2026 listings. A one-bedroom flat in central Sofia costs $620-1,010, in central Bucharest $700-1,100.

Bulgaria's average wage in the second quarter of 2026 was €1,444 before tax, about $1,700. Romania's minimum wage from 1 July 2026 is 4,325 lei, about $920.

Everyday life: banks, climate, schools

Bulgaria offers mountains and the Black Sea with Burgas and Varna, mild coastal winters and Bulgarian in Cyrillic script, easier for Russian speakers to learn. Since 2026 the euro has simplified life and business.

Romania is larger: Bucharest with international company offices, Cluj-Napoca with its tech sector, the Carpathians and the Black Sea. Romanian is close to Italian, and banks and services in Bucharest are convenient for foreigners.

This topic in other countries

Other country comparisons:

FAQ

Which is better to move to: Bulgaria or Romania?

Bulgaria for descendants of Bulgarians and life by the sea in a euro country; Romania for small business at 1% of turnover and dual citizenship.

Where are taxes lower: Bulgaria or Romania?

Income tax is 10% in both. For business: 10% of profit in Bulgaria, 16% or 1% of turnover for small companies in Romania.

Where is citizenship faster?

By origin, in Bulgaria, within 1-2 years. By naturalisation, about 10 years in Bulgaria and 8 in Romania.

Can I keep my current passport?

In Romania, yes. In Bulgaria, with citizenship by origin; ordinary naturalisation requires leaving your previous citizenship.

Where is it cheaper to live: Bulgaria or Romania?

A single person needs $1,700-2,500 a month in Sofia and $1,300-2,300 in Bucharest.

Are Bulgaria and Romania in Schengen?

Yes, both have been full Schengen members since 2025.

What currency do Bulgaria and Romania use?

Bulgaria has used the euro since 1 January 2026, Romania the leu.

Don’t want to figure this out alone?

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