Romania – Property Taxes

What taxes and fees apply when buying a property in Romania?

Whereas countries like the UK and Australia require buyers to pay a percentage of the purchase price to the state as stamp duty, Romania imposes no such transfer tax on the purchasing side. The principal costs a buyer faces are notary fees, a cadastre registration fee, VAT in the case of certain newly built properties, and any legal or agent charges. Taken together, the overall financial burden on the buyer remains relatively restrained by European standards.

Notary fees are a compulsory element of every property transaction in Romania. Under Romanian law, any agreement involving the transfer of ownership over real estate must be drawn up in writing and authenticated by a licensed public notary to be legally binding. The notary’s fee is ordinarily calculated against the sale price and follows a nationally set tariff grid issued by the Chamber of Notaries Public, with rates generally falling somewhere between 0.5% and 1.5% of the property’s value — with the percentage declining as the value increases. It is advisable to confirm the precise fee with your chosen notary before exchanging, given that the tariff schedule is revised from time to time.

Land registry (Cadastre) fee: After the notarial deed is executed, ownership must be entered in the Land Book (Cartea Funciară). Registration fees are generally set at 0.15% of the property value for transfers involving private individuals and at 0.5% for transfers to corporate entities. This is functionally similar to land registration charges found in jurisdictions such as Ireland or New Zealand — an administrative levy rather than a tax designed to generate significant revenue.

VAT on new-build property: From 2024 onward, an individual purchasing a single dwelling valued at no more than 600,000 lei and with a floor area of up to 120 sqm qualifies for a reduced VAT rate of either 5% or 9%. Properties that fall outside these criteria may be subject to the standard 19% VAT rate (as of mid-2025). The resale of older residential properties between private parties is ordinarily exempt from VAT. It is essential to clarify the applicable VAT treatment with your notary or tax adviser before signing any contract.

Legal and agent fees: While legal representation is not always obligatory, engaging a lawyer for conveyancing is strongly advisable. Legal fees for property purchase work typically sit in the range of 0.5% to 1% of the purchase price. Where an estate agent is involved, their commission may be shared between the parties or borne entirely by the seller, depending on the commercial agreement in place.

Worked example — approximate buyer costs on a RON 500,000 (approx. EUR 100,000) apartment (as of 2025):

The above figures are provided for illustrative purposes only. The actual amounts will vary depending on the property’s value, the notary engaged, whether the property is newly built or a resale, and the buyer’s personal circumstances. Always confirm current fees with your notary and ANAF (Romania’s National Tax Administration Authority) before proceeding.

What taxes and fees apply when selling a property in Romania?

The primary fiscal burden of a Romanian property transaction rests with the seller, who must pay an income tax on the sale value. There is no separate capital gains tax calculated on net profit for private individuals (this distinction is explored further in the following section); rather, the tax is charged against the full transaction amount at one of two rates, determined by the duration of ownership.

The applicable income tax rate on a property sale varies according to how long the seller has held the asset. A rate of 3% applies where the property has been owned for up to three years, while a reduced rate of 1% applies where ownership has exceeded three years. By comparison, this represents a considerably lighter fiscal charge than the capital gains tax frameworks in France or Germany, where the actual profit — rather than the gross sale price — is taxed, often at substantially higher marginal rates.

The income tax is applied to the sale price stated in the notarised sale-purchase agreement. However, if the declared price falls below the standard valuation figure contained in the Romanian notaries’ evaluation grid, the higher grid value will be used as the taxable base. This provision is designed to deter under-reporting of sale prices for tax-minimisation purposes.

For individual sellers, the notary public withholds the tax at the point of authenticating the sale-purchase deed — meaning that sellers are not required to file a separate tax declaration for this liability. The notary calculates the amount due, collects it, and remits it to ANAF by the 25th of the month following the transaction.

Other costs borne by the seller: The seller customarily meets the notary fee (though the parties may agree to split this differently), settles any outstanding annual property tax balance, and pays estate agent commission where an agent has been appointed — typically somewhere between 2% and 3% of the sale price, though this is commercially negotiable. Legal fees, should a solicitor be retained, generally add a further 0.5% to 1% of the transaction value.

Agricultural land — a special provision: Sellers of agricultural land who dispose of it within eight years of acquisition are subject to an 80% tax on any positive difference between the land’s value at the time of sale and its value at the time of purchase. These values are determined either by an expert’s report produced by the Chamber of Notaries Public or by the minimum value from the market survey conducted by the Chambers of Notaries Public. This rule functions as a strong disincentive against short-term speculative trading in agricultural land and applies equally to resident and non-resident sellers.

Is capital gains tax payable on property sales in Romania?

Romania does not operate a conventional capital gains tax regime for residential property disposals by private individuals — that is, a tax levied on the net profit derived from the sale (being the sale price less the original acquisition cost). Instead, as outlined above, an income tax is applied to the gross transaction value. This is a meaningful distinction for those accustomed to CGT systems operating in countries such as Canada, Australia, or Ireland, where only the profit element is taxed and acquisition costs or improvement expenditure may be deducted from the taxable base.

While individuals are not subject to a conventional capital gains levy on property disposals, a transfer income tax is charged on the value of the transaction itself. Income arising from the transfer of real estate is taxed by reference to the full transaction amount, at a rate that depends on the duration of ownership. For all types of constructions and their associated land, as well as bare land, the rate is 3% where the asset has been held for three years or fewer, dropping to 1% for assets held beyond three years.

Cases where no income tax is charged on a transfer: No tax arises on the transfer of property where it is gifted to a relative within the third degree of kinship, or where it passes by inheritance. More specifically, no tax is due on transfers arising under special restitution legislation, on gifts between qualifying relatives, or on inheritance where the succession procedure is concluded within two years of the predecessor’s death.

Non-residents: Non-residents may be subject to Romanian tax on gains or transfer income arising from certain property transactions. Relief may be available under the terms of a double taxation treaty between Romania and the individual’s country of tax residence — Romania has an extensive treaty network, and the relevant agreement may reduce or eliminate liability at the Romanian end. Non-residents should consult both a Romanian tax adviser and the tax authority in their country of residence to establish their full position before completing any transaction.

Practical example — income tax on a property sale:

These figures are illustrative only. Always confirm current rates and thresholds with ANAF or a qualified Romanian tax adviser before finalising any sale.

Are there annual property taxes in Romania?

Yes. Property owners in Romania are subject to a recurring annual building tax and a separate land tax, both of which are administered at the municipal level by local authorities. In concept, these taxes are comparable to council rates in Australia or municipal property levies in many other countries, though the amounts tend to be quite low by EU standards.

The building tax is charged on structures, with the applicable rate varying according to how the building is classified and its assessed taxable value. The land tax is computed by reference to the area of the land in square metres, its location, and its category of use as defined by local authority classifications. For a typical city apartment — whether in Bucharest, Cluj-Napoca, or another urban centre — the combined annual building and land tax bill may amount to only a few hundred RON per year, placing Romania among the least burdensome EU jurisdictions for recurring property taxation. Property owners should contact their local fiscal authority (Direcția de Impozite și Taxe Locale) to obtain their current assessment.

Payment deadlines: Annual property tax falls due in two equal instalments, payable by 31 March and 30 September respectively. Where a taxpayer settles the full annual amount in advance by 31 March, local authorities may grant a discount of up to 10%, subject to a local council decision.

Significant changes from 1 January 2026: Romania is introducing the RO e-Proprietate system — a unified national platform for managing fiscal records and real estate data. From 1 January 2026, revised rules governing the calculation of building tax, land tax, and vehicle tax will take effect, including substantially higher taxable values and applicable rates. Furthermore, the granting of certain existing tax exemptions will become discretionary rather than mandatory for local authorities. This reform is far-reaching, and property owners should review their updated tax assessments with care once the new rules come into force.

Surcharge on high-value residential property: Individuals who, as at 31 December of the preceding fiscal year, own — either solely or jointly — residential buildings in Romania whose taxable value exceeds 2,500,000 lei will be liable for a special supplementary tax of 0.9% calculated on the amount by which the building’s taxable value (as communicated by the relevant local tax authority) exceeds that threshold. This charge is broadly analogous to wealth-based property levies in place in certain other European jurisdictions and is aimed squarely at the highest tier of residential property ownership. Verify current thresholds and computation rules with ANAF.

How is rental income from property taxed in Romania?

Rental income received by individuals from property located in Romania is subject to a straightforward flat-rate income tax. The applicable rate is 10% on net rental income — a simple and comparatively low charge when set alongside the progressive income tax schedules that operate in many other EU member states, where rental earnings can be taxed at rates reaching 40% to 50% at higher income bands.

Determining the taxable base: Deductible expenses that are directly attributable to generating the rental income — including maintenance, cleaning, and other operational costs — may be subtracted from gross receipts. In practice, Romanian tax law has historically permitted landlords to apply a standard 40% flat deduction from gross rental income in place of itemising individual expenses, leaving a taxable base equivalent to 60% of the gross rent received. However, this deduction mechanism has been subject to legislative revision — taxpayers should verify the rules currently in force with ANAF or a qualified adviser before filing.

Registration and reporting requirements: Romanian tax residents earning rental income must submit an annual income tax return to ANAF by 25 May of each year, covering the income earned in the prior calendar year. Landlords are also generally required to register their tenancy agreement with both ANAF and the local tax authority. Failure to register a rental contract may attract financial penalties.

Short-term lets via platforms such as Airbnb: Income generated through short-term letting platforms is treated as rental income — or, in some scenarios, as income from independent activities — and is taxable accordingly. The classification is consequential: occasional lets of a single property are generally categorised as rental income subject to the 10% rate, whereas more systematic and regular activity — especially where multiple properties are involved — may be reclassified as self-employment income, potentially giving rise to additional social contribution liabilities. ANAF has stepped up scrutiny of platform-based letting income in recent years. Specialist local tax advice is strongly recommended for anyone intending to use short-term rental platforms.

Non-residents: Individuals who are not Romanian tax residents remain liable to Romanian tax on income sourced within Romania, including rent received from Romanian property. Non-residents should register with ANAF and report their rental earnings, and should also establish whether a double tax treaty between Romania and their country of residence operates to prevent or reduce double taxation.

Does inheritance tax apply to property in Romania?

Romania has no dedicated inheritance tax — also known in other jurisdictions as a succession or estate tax. This places the country in a comparatively advantageous position relative to states such as France, Spain, or Belgium, where the transfer of property to heirs — particularly non-direct family members — can attract substantial succession duties.

Nevertheless, inherited property may give rise to a notary fee for handling the succession and, under certain conditions, a transfer income tax. Where the inheritance procedure is completed within two years of the predecessor’s death, no income tax is charged on the transfer of the real estate. If the procedure is not finalised within that two-year window, a 1% tax becomes payable on the full property value. Heirs are therefore strongly encouraged to progress the succession promptly, as delay can result in a meaningful additional cost.

Non-resident and foreign heirs: A non-resident heir is entitled to inherit Romanian property under the same general framework that applies to Romanian residents. The succession must be handled by a Romanian notary, and the resulting succession certificate (certificat de moștenitor) must be entered into the Land Book. Romania is party to EU Regulation 650/2012 (the European Succession Regulation), which establishes which country’s succession law applies in cross-border estates involving EU member states. As a general principle, the law of the country in which the deceased was habitually resident governs the succession, though it is possible in some circumstances for the deceased to designate the law of their nationality. Heirs who are resident outside the EU should seek expert legal advice on how jurisdiction will be determined, as this will depend on applicable bilateral treaties or private international law principles.

Double tax treaties: Romania has entered into double taxation agreements with a significant number of countries. Where both Romania and another state assert taxing rights over an inheritance, the relevant treaty may determine how liability is allocated. Engaging a specialist adviser with expertise in cross-border succession matters is advisable in these situations.

Does gift tax apply to property transfers in Romania?

Romania does not impose a standalone gift tax. However, transferring real estate by way of a gift can trigger income tax liability in certain circumstances, making it essential to understand the relationship between the parties involved and the nature of the transfer.

In general terms, gifts are not taxable. That said, the gifting of real estate may attract income tax unless the gift is made between spouses or between relatives within the third degree of kinship. This exemption encompasses transfers between parents and children, grandparents and grandchildren, siblings, and spouses — in other words, the most common family scenarios in which property passes from one generation to another, or between life partners.

Donations made between close relatives and between husband and wife are fully exempt from income tax. Where a gift is made outside this protected circle — for example, to a friend, a more distant relative, or a business associate — the transfer may be treated for tax purposes in the same manner as a sale. In such cases, the notary will calculate and withhold the applicable income tax based on the property’s assessed value, with the same 1% or 3% rates applying as for an outright sale, depending on the length of ownership.

Whether or not the gift attracts income tax, all transfers of real estate property by way of donation must be completed before a Romanian notary and subsequently registered in the Land Book. The notary will confirm the applicable tax treatment based on the specific relationship between the donor and recipient.

Are there any tax advantages or incentives for buying property in Romania?

Several fiscal measures are available in Romania that can meaningfully reduce the cost of acquiring or developing property, particularly for individuals purchasing qualifying new-build homes or for property owners who manage their annual tax obligations efficiently.

Reduced VAT for qualifying new residential properties: From 2024 onward, any individual acquiring a single dwelling valued at no more than 600,000 lei and with a usable area not exceeding 120 sqm is entitled to a reduced VAT rate of either 5% or 9%. Given that the standard rate stands at 19%, this represents a significant potential saving on eligible new-build purchases and is available to any individual buyer rather than being restricted to first-time purchasers. Note that the 5% reduced rate was previously reserved for properties beneath a lower price threshold, so it is important to confirm the current thresholds and applicable rate with your notary or ANAF before exchange.

Early payment reduction on annual property tax: Taxpayers who pay their full annual property tax liability in advance by 31 March may qualify for a reduction of up to 10%, where the local authority has resolved to offer such a discount. This is a straightforward saving requiring only timely payment and is available to all property owners across Romania.

Building authorisation tax relief: The authorisation tax for construction works is normally calculated at 1% of the approved investment value. Residential buildings may benefit from a 50% reduction on this tax, making it a worthwhile consideration for those planning to self-build or undertake major renovation projects requiring a building permit.

Broader investment environment: Romania’s generally low tax burden — including a flat 10% personal income tax rate and a straightforward property transfer tax regime — makes it an attractive destination for property investment by European standards. EU membership provides additional legal certainty and access to structural and cohesion funds that have supported infrastructure development and urban renewal in many Romanian cities.

No mortgage interest deduction for individuals: In contrast to countries such as the Netherlands or the United States, which have historically allowed homeowners to deduct mortgage interest from taxable income, Romania does not provide a general income tax deduction for individuals in respect of mortgage interest payments on a primary residence. Check with ANAF to see whether any specific reliefs may apply to your circumstances.

Do different rules apply to foreign buyers or non-residents purchasing property in Romania?

Romania draws a distinction between nationals of EU and EEA member states and those from outside that grouping, particularly in relation to the purchase of land — though buildings may generally be acquired freely by any buyer regardless of nationality.

Citizens of EU and EEA countries are entitled to purchase real estate in Romania — including both land and buildings — on precisely the same terms as Romanian citizens. Nationals of non-EU/EEA countries may acquire buildings in Romania, but the acquisition of land is only permissible where an international agreement exists that also grants Romanian citizens reciprocal rights to purchase land in the buyer’s country of origin. In practice, this means that a non-EU/EEA buyer can purchase an apartment or a house along with its built footprint, but acquiring bare agricultural or forest land outside urban areas may require additional legal steps or may need to be structured through a Romanian-registered legal entity.

Romanian law also imposes certain conditions on real estate acquisitions generally — for instance, an obligation to observe pre-emption rights in the case of transactions involving listed historical monuments. Non-EU/EEA individuals and entities may only acquire land ownership in Romania under the terms of an international treaty to which the Romanian State is a party, and only on a basis of reciprocity.

Acquisition via a Romanian company: One route that some non-EU/EEA buyers adopt when seeking to acquire land is to establish or take ownership of a Romanian limited liability company (SRL) through which the property is held. This approach carries its own fiscal and administrative implications — including corporate income tax exposure on any future sale gains — and should only be pursued following specialist legal and tax advice.

Tax compliance obligations for non-residents: Non-resident buyers face no additional property purchase taxes beyond those applicable to resident buyers. However, they must obtain a Romanian fiscal identification number (CIF, or the equivalent for foreign individuals) in order to complete the notarial transfer deed and register ownership in the Land Book. Any rental income earned or sale proceeds received from Romanian property will remain subject to Romanian income tax rules regardless of where the owner is tax-resident, and ANAF must be kept informed of the ownership. Double tax treaties may limit Romanian tax exposure where the owner is also liable to tax in their country of residence — it is important to check both countries’ rules.

Agricultural land — special restrictions: Law 116/2024 introduced sweeping changes to Law No. 17/2014 governing the purchase and sale of agricultural land situated outside urban boundaries in Romania. The rules on pre-emption rights and eligibility to purchase such land are intricate and have been amended on several occasions. Any buyer — resident or non-resident — contemplating the acquisition of extra-urban agricultural land should obtain specialist legal advice on the requirements currently in force before proceeding.

Frequently asked questions

Do I need a Romanian tax number to buy property in Romania?

Yes. Every buyer — whether resident in Romania or not — requires a Romanian fiscal identification number to execute the notarial deed and register the transfer of ownership. Foreign nationals can apply for this number through the local ANAF office. Your notary or legal adviser will ordinarily walk you through the process. Current procedures are set out on ANAF’s official website.

Who pays the notary fees in a Romanian property transaction — buyer or seller?

Convention holds that the buyer meets the notary fee, though Romanian law does not prevent the parties from agreeing a different allocation. The seller is responsible for the income tax levied on the sale value. The division of other transaction costs — such as estate agent commission — is a matter for commercial negotiation between the parties. Any agreed arrangement should be set out clearly in writing before any contract is signed.

Is there a threshold below which no income tax is due on a property sale?

The 1% and 3% income tax rates on property sales currently apply to the full declared transaction value, with no universal tax-free threshold for residential property disposals by private individuals. Earlier legislation included a RON 450,000 exempt amount, but subsequent law changes have altered this position — always confirm the current rules with ANAF or a qualified Romanian tax adviser prior to completing a sale.

How is property tax assessed — and how do I find out what I owe each year?

Annual building and land taxes are calculated by the local fiscal authority (Direcția de Impozite și Taxe Locale) in the municipality where the property is situated. That authority will issue a formal tax assessment (decizie de impunere) setting out the amounts payable. Given that new valuation rules take effect from 1 January 2026, it is important to review any fresh assessment carefully once the new regime is in place. Contact your local municipal authority directly, or visit their website, to obtain your current tax figures.

Do I need to declare rental income if I rent my Romanian property to a single long-term tenant?

Yes. All rental income derived from property located in Romania must be declared to ANAF irrespective of the amount involved or the nature of the tenancy — whether long-term or short-term. You are required to register your tenancy agreement and to file an annual income tax return by 25 May each year for the income received in the preceding year. Penalties are imposed for non-compliance. A local tax adviser can guide you on registration procedures and available deductions.

Can I avoid paying inheritance succession tax by completing the inheritance quickly?

Romania levies no inheritance tax as such, but a 1% income tax becomes payable if the inheritance procedure is not brought to a conclusion within two years of the predecessor’s death. Provided the succession is completed through a Romanian notary within that window, no income tax will be charged on the inherited property. It should be noted that the notary’s fee for conducting the succession procedure applies regardless of how swiftly the process is completed.

Are there restrictions on repatriating funds after selling a Romanian property?

As a member of the EU, Romania upholds the principle of free movement of capital, which in practice means that sale proceeds may generally be transferred abroad without restriction. That said, transfers of large sums may require supporting documentation — such as the notarised sale deed and evidence of Romanian income tax payment — to satisfy the anti-money laundering requirements of the transferring bank. Your bank and a locally based legal adviser can provide practical guidance. Retain comprehensive records of the entire transaction in case documentation is requested.

Where can I get official information on Romanian property taxes?

The authoritative official source is ANAF (Agenția Națională de Administrare Fiscală), Romania’s national tax administration authority. Questions relating to property registration should be directed to the National Agency for Cadastre and Land Registration (ANCPI). For annual local property taxes, the fiscal department of the relevant municipality is the appropriate point of contact. Romanian tax legislation is subject to frequent change — always verify current figures and rules against official sources or with a locally qualified tax professional before making any financial decisions.