Romania Rental Income Tax Guide 2026

Rental Income — IIT 10% Flat

Rental income from property in Romania is subject to IIT (Impozit pe Venit) at a flat rate of 10%. This is one of the most favorable rental income tax regimes in the EU. The tax applies to both residential and commercial rental income. The tax year is the calendar year. Rental income must be declared in the annual tax return (form 212) by May 15 of the following year. The standard IIT rate of 10% applies to the taxable base (gross rent or net rent depending on the regime chosen). There is no progressive rate — all rental income is taxed at the flat 10% rate.

No Deduction Option — Gross Rent Taxed at 10%

Under the standard regime, rental income is taxed on the gross rent amount at 10%, with no deduction allowed for expenses. This is the default regime for individuals renting out property who do not register as having an independent activity. The landlord simply declares the gross rental income received during the year and pays 10% IIT on that amount. Expenses (maintenance, repairs, insurance, property management fees, mortgage interest) are not deductible. This regime is simple and requires no expense tracking, but may result in higher tax for properties with significant expenses. It is the preferred regime for most small-scale landlords.

Alternative — 10% on Net Rent (Independent Activity)

Landlords may opt to register rental activity as an independent activity (activitate independentă) through a PFA (Persoană Fizică Autorizată) or other business form. Under this regime, tax is paid at 10% on net rental income (gross rent minus deductible expenses). Deductible expenses may include: maintenance and repairs, property insurance, property management fees, utilities (if paid by the landlord), depreciation of the property, mortgage interest, and professional fees (legal, accounting). This regime requires: registration with ANAF (as PFA or authorized individual), bookkeeping (simple accounting), and filing of the annual return with full expense documentation. The net rent regime is generally advantageous for properties with significant expenses, such as commercial properties or multiple rental units.

Tax on Building — Impozit pe Clădiri (0.08-0.2%)

Property owners must pay building tax (Impozit pe clădiri) to the local council (Primărie) where the property is located. The tax is calculated as a percentage of the building value: 0.08-0.2% for residential properties (depending on the local council's decision) and up to 1.3% for non-residential (commercial) properties. The building value is determined by: the local council's valuation (based on location, size, quality) or, in some cases, a valuation certificate. The tax is payable annually (in two installments if the amount exceeds RON 50). Late payment attracts penalties of 0.01% per day. The building tax is deductible as an expense if the landlord uses the net rental regime (independent activity).

Non-Resident Landlord — 10% WHT

Non-resident landlords renting out property in Romania are subject to 10% withholding tax (WHT) on the gross rental income (or net, depending on the applicable treaty). The tenant (or property manager) is generally required to deduct and remit the WHT to ANAF. Under most DTAs, rental income from immovable property is taxable in the country where the property is located (Romania). This means non-resident landlords should expect to pay Romanian tax on their Romanian rental income. The WHT is typically final withholding for non-residents (no need to file an annual return if WHT is the final tax). However, if the landlord has other Romania-source income or the WHT exceeds the treaty rate, a tax return may be advisable to claim a refund.

FAQs

Do I need to register my rental activity with ANAF?

If you rent out property as an individual (no independent activity registration), you must declare the rental income in your annual tax return (form 212) by May 15. No prior registration is required. If you opt for the net rental regime (independent activity), you must register with ANAF and obtain a CIF before starting the activity.

Can I offset rental losses against other income?

Under the gross rental regime, no losses can arise (since no expenses are deducted). Under the net rental regime (independent activity), rental losses can be carried forward and offset against future rental income from the same activity for up to 5 years. Losses cannot be offset against other income (salary, dividends).

Are short-term rentals (Airbnb) taxed differently?

Short-term rentals (Airbnb, Booking) are generally treated the same as long-term rentals for income tax purposes. However, additional regulations apply: local council registration (tourist accommodation), collection of local accommodation tax (taxa de stațiune), and compliance with specific safety and hygiene standards.

Disclaimer

This guide provides general information about rental income taxation in Romania for 2026. Tax laws, rates, and thresholds are subject to change through legislation. Always consult with a qualified tax advisor for advice specific to your situation. InvestmentKit does not provide tax advice.