Poland vs Romania: IT Contractor Tax Showdown 2026
Poland's ryczałt (12% flat rate + ZUS) and Romania's microenterprise regime (1% turnover tax + 16% dividend tax) are the two most-discussed low-tax B2B setups for IT contractors in Central Europe. Here is which one actually wins, at real 2026 numbers.
The short answer at €100,000 revenue
Total effective tax + social/health burden, 2026
Worked example: net take-home by revenue level (2026, EUR/PLN ≈ 4.25, EUR/RON ≈ 5.05)
| Annual revenue | Poland net (ryczałt 12%) | Poland effective burden | Romania net (micro 1%) | Romania effective burden |
|---|---|---|---|---|
| €40,000 | ≈ €27,806 | 30.5% | ≈ €28,348 | 29.1% |
| €100,000 | ≈ €78,730 | 21.3% | ≈ €78,244 | 21.8% |
| €180,000 | ≈ €149,124 | 17.2% | ≈ €144,772 | 19.6% |
Illustrative figures assuming standard (non-preferential) ZUS, one mandatory Romanian employee at minimum wage, and full annual profit distributed as dividends. Real outcomes vary with exchange rates, actual costs, and personal circumstances — see the breakdown below.
How the €100,000 example breaks down
Poland: ryczałt + ZUS + health contribution
€100,000 revenue converts to roughly 425,000 PLN:
12% ryczałt on revenue: 425,000 × 12% = 51,000 PLN
ZUS social contributions (standard 'duży ZUS', no voluntary sick leave): ≈ 1,788 PLN/month × 12 = 21,459 PLN
Health contribution, top tier (revenue over 300,000 PLN): 1,495.04 PLN/month × 12 = 17,940 PLN
Total mandatory cost: ≈ 90,399 PLN (21.3% of revenue) — net ≈ 334,601 PLN ≈ €78,730
Romania: 1% micro tax + mandatory employee + dividend tax
The microenterprise must have at least one full-time employee, usually the owner at minimum wage — the rest is distributed as dividends:
1% microenterprise tax on turnover: €100,000 × 1% = €1,000
Mandatory employee at minimum wage, full employer cost: ≈ €9,840/year (owner nets ≈ €5,275 as salary)
Remaining profit distributed as dividends: €100,000 − €1,000 − €9,840 = €89,160
16% dividend tax (€14,266) plus 10% CASS health contribution on dividends, capped at 24× monthly minimum wage/year (≈ €1,925 max)
Net dividend ≈ €72,969, plus €5,275 net salary = ≈ €78,244 total net (21.8% effective burden)
Why the ranking flips as revenue changes
Fixed costs vs scaling costs
The two regimes are structured very differently, which is why neither one wins at every income level:
Poland's ZUS and health contribution are largely fixed above the tier threshold — they hurt more at low revenue, less as revenue climbs.
Romania's mandatory-employee cost is also fixed, but its 16% dividend tax applies uncapped to every euro distributed — so the burden scales up with revenue.
Net effect: Romania tends to win below roughly €70,000-90,000, the two regimes roughly tie near €100,000, and Poland wins clearly above that.
Retaining profit inside the Romanian company instead of distributing it defers the 16% dividend tax entirely — a lever Poland's revenue-based ryczałt does not offer.
Tax rate is not the only variable
Run your own numbers
Compare net income, effective tax rate, and social contributions for Poland, Romania, and 50+ other countries side by side.
FAQ
Which is cheaper for an IT contractor: Poland ryczałt or Romania microenterprise?
It depends on revenue. Below roughly €70,000-90,000, Romania's 1% turnover tax usually wins because Poland's fixed ZUS and health contributions weigh heavier on smaller revenue. Around €100,000 the two are close to a tie. Above that, Poland pulls ahead because its costs are capped while Romania's 16% dividend tax scales with every additional euro distributed.
Does Romania's microenterprise regime really require an employee?
Yes — a Romanian microenterprise must have at least one full-time employee to qualify for the 1% rate. Most solo contractors satisfy this by employing themselves at minimum wage, which adds a fixed annual cost (roughly €9,800-10,000 in 2026) regardless of how much the company earns.
What happens if a Romanian microenterprise exceeds €100,000 revenue?
It loses eligibility for the 1% regime starting from the quarter in which the €100,000 threshold is exceeded and switches to the standard 16% corporate income tax on profit for the rest of the year — a much higher effective rate than the microenterprise regime, so revenue near the ceiling needs careful monitoring.
Can I avoid Romania's 16% dividend tax by not distributing profit?
Yes, in effect — dividend tax is only due when profit is actually distributed to the shareholder. Profit retained inside the company is not taxed at the personal level until distributed, which is a meaningful planning lever Poland's revenue-based ryczałt does not offer.
Keep reading
Poland B2B Ryczałt for IT Contractors 2026
The 12% flat rate, ZUS, health contributions, and when linear tax wins instead.
Romania Microenterprise 1% Tax in 2026
The new €100,000 threshold and the mandatory employee requirement explained.
Poland Tax Calculator
Model B2B ryczałt, linear tax, and employment take-home for 2026.
Romania Tax Calculator
Model microenterprise, dividend, and CASS obligations for 2026.