This is the most popular choice for freelancers, consultants, and IT professionals. You only pay taxes on the profit you actually make. 

• Registration: Done entirely online via the Mano VMI (State Tax Inspectorate) portal. 

• Timeline: You can start your activity the moment you submit the application. 

• Bookkeeping: You must keep an income and expenditure journal. You can either deduct actual expenses (with receipts) or a flat 30% of your income without needing any documents. 

• Taxation: 

  • Profit up to €20,000: 5% Personal Income Tax (PIT). 

  • Profit €20,000 – €42,500: Tax increases progressively from 5% to 20%. 

  • Profit above €42,500: Subject to the general progressive rate of 20% to 32% (combined with any other income like salary). 

  • Social Security: You also pay VSD (Social Insurance) and PSD (Health Insurance) to Sodra. 

Best for small-scale local services (e.g., hairdressing, handiwork, private tutoring). 

• Fixed Tax: You pay a flat fee set by your local municipality in advance. 

• Income Limit: You cannot exceed €45,000 per year (or €50,000 for certain specific activities in 2026). If you exceed this, the excess is taxed under the "Individual Activity Certificate" rules. 

• Restrictions: You can only perform specific activities listed by the government. You generally cannot provide services to companies that do the same type of work. 

• Validity: You can buy a license for a specific number of days (even just for a weekend).