Romania Inheritance & Gift Tax Guide 2026

Overview — No Inheritance Tax on Direct Relatives

Romania abolished its inheritance tax for direct relatives in 2013. As of 2026, there is no tax on inherited assets passing to the spouse, children, grandchildren, parents, or grandparents. This makes Romania one of the most inheritance-tax-friendly jurisdictions in the EU. A small tax applies to inheritance by distant relatives and unrelated persons. The succession process is governed by the Romanian Civil Code (Codul Civil) and involves notarial procedures rather than tax filings for most cases. There is no estate tax on the deceased's estate — the tax is on the heir's acquisition.

Inheritance Tax Rates

Inheritance tax applies based on the relationship to the deceased:

• Direct relatives (spouse, children, grandchildren, parents, grandparents): 0% (exempt)
• Distant relatives (siblings, nieces, nephews, aunts, uncles): 1–2% of the inherited value above RON 50,000
• Non-relatives: 1–2% of the full inherited value

The tax is calculated on the net value of the inherited assets after deducting debts of the estate. The tax is paid by the heir and is due within 60 days of the inheritance certificate (certificat de moștenitor) being issued. Agricultural land and forestry may qualify for reduced rates.

Gift Tax

Gift tax in Romania follows similar principles to inheritance tax:

• Gifts to direct relatives (spouse, children, parents): 0% (exempt)
• Gifts to distant relatives: 1–2% of value above RON 50,000
• Gifts to non-relatives: 1–2% of full value

Gifts of movable property (cash, shares, vehicles) are generally tax-free regardless of the relationship, provided they are notarized. Gifts of immovable property require a notarized deed and registration in the land book (Carte Funciară). Notary fees for gift deeds are typically 0.5–1.5% of the property value.

Succession and Probate

Romanian succession follows the Civil Code with the following key features:

• Reserved heirs (moștenitori rezervatari): Spouse, children, and parents are entitled to a minimum share of the estate (typically 50% of the intestate share) that cannot be overridden by a will
• Testamentary freedom: The deceased can dispose of the remaining portion (cotitatea disponibilă) freely by will
• Notarial procedure: Inheritance is declared before a notary public, who issues the certificat de moștenitor (inheritance certificate) that serves as proof of ownership for asset transfer
• Court succession: If there is a dispute or if the estate includes complex assets, a court procedure may be required

Capital Gains on Inherited Assets

Inherited assets benefit from a stepped-up cost basis for capital gains tax purposes. The cost basis is the fair market value at the date of the deceased's death (or the date of the inheritance certificate). This means that any appreciation that occurred during the deceased's lifetime is not subject to capital gains tax. If the heir sells within 3 years of inheritance, the 10% CGT applies on the gain above the stepped-up basis. After 3 years, the property is exempt from CGT.

FAQs

Is there an estate tax in Romania?

No, Romania does not have an estate tax. The inheritance tax is borne by the heir, not the estate. The heir pays a tax based on their relationship to the deceased. Direct relatives are exempt, distant relatives and non-relatives pay 1–2%.

Do I need a will in Romania?

A will is not mandatory but is strongly recommended to ensure your assets are distributed according to your wishes. Without a will (intestate succession), the estate is divided according to the Civil Code's default rules. Reserved heirs (spouse, children, parents) cannot be disinherited entirely.

How are life insurance payouts taxed upon death?

Life insurance payouts to named beneficiaries are generally not subject to inheritance tax. The payout is paid directly to the beneficiary outside the estate. However, if the estate is the beneficiary, the payout is included in the estate and may be subject to inheritance tax rules.

Disclaimer

This guide provides general information about inheritance and gift taxation in Romania for 2026. Succession law involves complex legal dimensions. Always consult with a qualified Romanian legal professional (notar public) or tax advisor for advice specific to your situation. InvestmentKit does not provide legal or tax advice.