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Paying taxes for a Romanian Property

by Vlad Cuc

Levies due on transfer of ownership for constructions and land

Tax on transfer of ownership, excluding inheritance, is calculated in the following manner:
a) for constructions of any kind and land gained in a term of up to 3 years:
– 3% for amounts up to 200,000 Lei;
– 6,000 Lei + 2% of the amount exceeding 200,000 Lei, for amounts over 200,000 Lei.
b) for constructions of any kind and land gained in a term of over 3 years:
– 2% for amounts up to 200,000 Lei;
– 4,000 Lei + 1% of the amount exceeding 200,000 Lei, for amounts over 200,000 Lei.
Levies detailed above are not owed for certain types of donations, inheritance etc.

Annual Taxation on Buildings
Any person owning a building located in Romania owes an annual levy to the State. This tax is to be paid to the local budget of the respective county, town or municipality where the building is located.

For physical persons the levy is calculated by applying a quota of 0.1% to the taxed value of the building. As an example, the taxed value for a building constructed of reinforced concrete, brick or stone is in amount of 397 Lei/square meter.

The taxed value is reduced
depending on the year of the building’s construction.

Note: If a physical person owns 2 or more residence buildings – not rented to another party – the levy shall raise accordingly.

In the case of companies, the levy on buildings is calculated by a applying a quota of 0,25% to 1,50% to the established value of the building. Each exact levy is established by the Local Council in these limits.

Annual Taxation on Land
Any person owning Romanian land owes an annual levy to the State, with certain exceptions. This levy is owed to the local budget of the county, town or municipality. When the land is situated in Bucharest, the taxes are to be paid to the local budget of the city’s sector.
The levies on land are not owed for the land beneath a building.
The land tax is established taking into consideration the number of square meters, the rating of the respective location of the land and its category per the decision of the Local Council.

In the case of non-agricultural land, registered as “land with construction”, the tax is established per hectare. As an example, the most expensive rate is 7,404 Lei/hectare.
Levies are to be paid annually in 2 equal rates, until the 31st of March and 30th of September. If the amount does not exceed 50 Lei, then the levy is to be paid fully until March 31st.