Romania Property Tax Guide 2026

Overview — Property Taxation in Romania

Property taxes in Romania are levied at multiple levels. Local authorities (municipalities/communes) levy annual property tax on buildings and land. The national government imposes VAT on new property purchases, capital gains tax on property disposal (under IIT), and stamp duty (taxă notarială) on property transfers. Foreign nationals and legal entities face some restrictions on acquiring certain types of property. The Cadastre (Cadastru) system records property ownership and is administered by the National Agency for Cadastre and Real Estate Advertising (ANCPI).

Annual Local Property Tax (Impozit pe Clădiri)

Annual property tax is levied by local authorities at rates set by each municipality within national guidelines:

• Residential property: 0.08–0.2% of the taxable value of the building
• Commercial property: 0.2–1.3% of the taxable value
• Mixed-use property: Proportional rates apply to each portion
• Land: 0.3–1% of the taxable value (depending on location and usage)

The taxable value is the cadastral value determined by the local council, which is typically significantly lower than the market value. Property tax is paid in two installments (31 March and 30 September). A 10% discount is available for early payment by 31 March for the full year.

VAT on New Property — 5% or 19%

The purchase of new residential property is subject to VAT. A reduced rate of 5% applies for homes valued up to RON 600,000 (approximately EUR 120,000) purchased by individuals. The standard 19% VAT rate applies to homes above this threshold and to commercial property. The 5% rate is a major incentive for first-time buyers and has significantly boosted the Romanian residential construction sector. The reduced rate applies to the first residential property purchase by individuals.

Notary Fees and Stamp Duty

Property transfers in Romania require notarized deeds. Notary fees are regulated and calculated on a sliding scale based on the property value: approximately 1–2% of the transaction value. Additional costs include:

• Cadastre registration fee: RON 100–500 depending on property type
• Land book (Carte Funciară) extract: RON 20–50
• Property valuation report: Required for loan applications, typically RON 500–1,500
• Tax clearance certificate: Required to prove no outstanding local taxes

Capital Gains on Property

Gains from the sale of property are subject to capital gains tax under IIT at 10% (since 2023, reduced from 16%). The gain is calculated as the difference between the selling price and the acquisition price, adjusted for documented improvement costs. Property held for more than 3 years is exempt from capital gains tax. Primary residence sales are exempt provided the owner has lived in the property for at least one year. Non-residents face a special 3% tax on the gross sale price of Romanian property.

FAQs

Can foreigners buy property in Romania?

EU/EEA nationals can buy property in Romania under the same conditions as Romanian citizens. Non-EU nationals can buy buildings but not land (with some exceptions through company ownership). Certain restrictions apply to agricultural and forest land.

What taxes apply when selling inherited property?

Inherited property sold within 3 years of inheritance may be subject to capital gains tax at 10% on the gain. If sold after 3 years, the gain is exempt. There is no inheritance tax on property inherited from direct relatives.

Are there any property tax exemptions?

Yes, exemptions are available for: heritage-listed buildings (with conditions), buildings used for social/educational purposes, property owned by non-profit organizations, and newly constructed buildings may have reduced rates for the first 5 years in some municipalities.

Disclaimer

This guide provides general information about property taxation in Romania for 2026. Local tax rates vary by municipality and are subject to change. Always consult with a qualified Romanian tax or property advisor for advice specific to your situation. InvestmentKit does not provide tax or legal advice.