Property Taxes in Romania: A Complete Guide for Foreign Owners in 2026

1. Do Foreign Property Owners Pay Tax in Romania?

Yes. Romanian property taxes are levied on the basis of property ownership in Romania — not on the basis of the owner’s citizenship, nationality, or place of residence. A French citizen, a British citizen, a US citizen, an Israeli citizen, and a Romanian citizen all pay the same building tax and land tax on an identical property in the same municipality. There is no foreign-owner surcharge and no general tax exemption for non-residents.

Foreign owners must have a Romanian tax identification number (NIF) and must register their property with the local tax authority (Direcția de Taxe și Impozite Locale) after purchase. Failure to register triggers penalties and makes it impossible to obtain the fiscal certificate (certificat fiscal) required for any future sale of the property.

2. Overview: What Taxes Apply to Romanian Property Owners?

3. Annual Building Tax (Impozit pe Clădire)

Every owner of a building in Romania — whether an apartment, a house, a villa, an office, a shop, or a warehouse — pays an annual building tax to the municipality where the property is located. The tax is assessed on 1 January each year: the person registered as owner on that date is liable for the full year’s tax.

For residential buildings owned by individuals, the tax is calculated by multiplying the building’s taxable value (determined by statutory formulas based on area, type, age, and location) by the local tax rate set by the municipal council. In 2026, the statutory taxable values per square metre for residential buildings were significantly increased — meaning that the building tax for many owners is noticeably higher than in previous years, even if the local rate itself has not changed.

For non-residential buildings (offices, commercial, industrial), the tax base is typically the accounting or appraisal value of the property, and the local rate range is higher than for residential buildings. Buildings that have not been revalued within the period prescribed by law may be subject to an increased rate — an incentive for owners to keep valuations current.

4. How the Taxable Value of a Building Is Calculated

The building tax is not calculated on the market price or the purchase price. For residential buildings owned by individuals, the Tax Code establishes statutory values per square metre, differentiated by building type (reinforced concrete frame, masonry, wood, etc.) and adjusted by the building’s age, location zone, and the availability of utilities. The local tax authority applies these formulas using the building’s cadastral data to produce the taxable value.

The 2026 statutory values represent a substantial increase over previous years — in some cases doubling or more. This means that even in municipalities where the local council has not changed its rate percentage, the actual tax bill may be significantly higher because the underlying taxable value per square metre has risen. Owners should verify their 2026 tax assessment rather than assuming it will match previous years.

For non-residential buildings and buildings owned by companies, the taxable value is generally the value recorded in the company’s accounting records (cost, revalued amount, or independent appraisal). Periodic revaluation — at least once every five years — is required to avoid penalty rates.

5. Residential, Non-Residential, and Mixed-Use Property

The tax rate applied to a building depends on its designated use. Residential buildings carry a lower rate range. Non-residential buildings — offices, shops, hotels, warehouses, professional premises — carry a higher range. If a building has mixed use (for example, an apartment where one room is registered as a company office), the tax may be calculated proportionally: the residential portion at the residential rate, the non-residential portion at the higher rate. Owners who register a company at their home address should verify whether this triggers reclassification of part of the property as non-residential for tax purposes.

6. Annual Land Tax (Impozit pe Teren)

Land tax is separate from building tax. The owner of a house pays building tax on the house and land tax on the plot. The owner of an apartment typically pays a small land tax component reflecting their proportional share of the land under the building — often a modest amount. The owner of an undeveloped plot pays land tax based on the area, location zone, and land category (intravilan/extravilan, residential, commercial, agricultural, forest).

Rates are set by each municipal council within statutory ranges and can vary significantly between municipalities. Agricultural land in extravilan areas generally carries lower rates per square metre than urban intravilan land. Owners of multiple plots — in the same or different municipalities — receive separate assessments for each.

7. Who Sets the Tax Rates?

The Romanian Tax Code (Codul Fiscal) establishes the framework: the types of tax, the methods of calculation, the statutory value tables, and the permitted rate ranges. Within this framework, each municipal council (consiliu local) sets the actual rates for its jurisdiction through an annual decision (hotărâre de consiliu local). This means that the building tax rate in Bucharest may differ from Cluj-Napoca, which may differ from Brașov, Constanța, or Timișoara. Some municipalities apply rates at the bottom of the permitted range; others apply higher rates or add local surcharges. Some offer early-payment discounts. The only way to know the exact rate for a specific property is to check the current decision of the relevant municipality.

8. Special Tax on High-Value Residential Property

Individuals owning residential buildings in Romania with a taxable value exceeding 2,500,000 RON (approximately €500,000) are subject to a special tax of 0.3% on the amount by which the taxable value exceeds the threshold. This is in addition to the regular building tax. The tax is self-assessed: the owner must file Form 216 (Declarația privind impozitul pe proprietățile imobiliare de valoare mare) and pay the tax within the statutory deadline. Joint owners calculate the threshold based on each owner’s proportional share of the property’s taxable value.

This tax applies only to residential buildings owned by individuals — not to company-owned property, not to commercial buildings, and not to land. It is separate from the regular building tax and is administered by ANAF (the national tax authority), not by the local municipality.

9. Registering Property with the Local Tax Authority

After purchasing a property, the new owner must declare it at the local tax authority (Direcția de Taxe și Impozite Locale) within 30 days. This is a separate procedure from the Land Book registration handled by the notary. The owner presents: the notarial sale-purchase contract, the Land Book extract, identification documents (passport, NIF), and — if acting through a representative — a power of attorney. The tax authority registers the property and issues a tax assessment (decizie de impunere) showing the annual building tax and land tax amounts. Foreign owners who cannot visit in person can appoint a representative with an apostilled and translated power of attorney.

10. Payment Deadlines and Procedures

Annual local property taxes are typically payable in two instalments: the first by 31 March and the second by 30 September. Many municipalities offer a discount (bonificație) for full-year payment made by 31 March — the discount rate is set by each municipal council and varies (often 5–10%). Payments can be made at the local tax office, through Romanian banking channels, or online where the municipality offers electronic payment. Foreign owners can pay by bank transfer from abroad — the payment must reference the property’s tax identification details and the specific tax period.

11. Penalties for Late Payment

Late payment triggers interest (dobânzi) and penalties (penalități de întârziere) calculated for each day of delay. The rates are set by the Fiscal Procedure Code. A property with outstanding tax debts cannot receive a clean fiscal certificate — which means it cannot be sold. In persistent cases, the tax authority can initiate enforcement proceedings, including bank account attachment. Foreign owners should establish a reliable payment mechanism — whether through a local representative, a property management company, or scheduled bank transfers — to avoid accumulating debts they may not even be aware of.

12. Rental Income Tax — Long-Term Letting

Individual landlords who rent property in Romania pay income tax on the net rental income. In 2026, the regime is: gross rental income minus a fixed expense deduction of 20% equals taxable net income; the tax rate is 10% of the net income. This means the effective tax rate on gross rental income is 8% (10% × 80%). If the tenant is a legal entity (a company) or another entity that maintains accounting records, the tenant may be required to withhold the tax at source and remit it to the authorities. If the tenant is an individual, the landlord self-assesses through an annual declaration.

Example: a foreign owner receives €500 per month (€6,000 per year) in long-term rent. Net income after the 20% deduction: €4,800. Income tax at 10%: €480 per year. This is the Romanian tax obligation — additional tax may apply in the owner’s country of residence, subject to double tax treaty provisions.

13. CASS Health Contribution on Rental and Passive Income

Beyond income tax, individual owners may owe a health insurance contribution (CASS — Contribuția de Asigurări Sociale de Sănătate) if their total annual passive income — from rent, dividends, interest, and certain other sources — exceeds the threshold of 6 minimum gross wages (24,300 RON in 2026, approximately €4,860). CASS is levied at 10% on a fixed base that depends on the income level: 6 minimum wages if income is between 6 and 12 minimum wages; 12 minimum wages if between 12 and 24; and 24 minimum wages if income exceeds 24 minimum wages.

For non-residents, the application of CASS depends on EU social security coordination rules and bilateral agreements. An EU citizen who is covered by the social security system of another EU member state (evidenced by an A1 certificate) may be exempt from Romanian CASS. Non-EU nationals should verify their position based on any applicable bilateral social security agreement between Romania and their country of residence.

14. Short-Term Rental and Airbnb Taxation

From 2026, short-term rental of up to seven rooms is classified as rental income (not independent business activity). The net income is calculated with a 30% fixed expense deduction (higher than the 20% for long-term rental, reflecting the higher operating costs of short-term letting). Income tax is 10% on the net income, giving an effective rate of 7% on gross income. CASS applies if the annual threshold is exceeded.

If a landlord rents more than seven rooms, the activity is reclassified as independent economic activity (activitate independentă), subject to different tax rules, reporting obligations, and potentially VAT registration. Short-term rental may also trigger local tourism registration requirements, tourist tax obligations, and platform-specific reporting under EU DAC7 rules. Owners using Airbnb, Booking.com, or similar platforms should verify their compliance with both national tax law and local municipal regulations.

15. VAT on Rental and Property Operations

Standard residential rental by an individual landlord is exempt from VAT. However, VAT applies to: commercial property rental (standard rate 21% in 2026, with the option for the landlord to tax rather than exempt); hotel and hospitality accommodation services (which may benefit from a reduced VAT rate); and short-term tourist accommodation that meets the criteria for hospitality services rather than simple rental. If a property owner’s taxable turnover from VAT-able activities exceeds the registration threshold, they must register as a VAT payer. Non-resident property owners conducting taxable activities in Romania may need to register for VAT directly or appoint a fiscal representative.

16. Tax on Property Owned Through a Romanian SRL

A Romanian SRL owning property pays: building tax at the non-residential rate (if the property is used commercially) or the residential rate (if leased as residential housing) — with the taxable value based on the accounting or appraised value; land tax; corporate tax on rental income (1% of turnover under the microenterprise regime, or 16% of profit under the standard regime); VAT if applicable; and — when profits are distributed to the shareholder — dividend tax at 8%. The SRL can deduct property-related expenses (maintenance, repairs, insurance, management fees, depreciation on the building) against its taxable income. Land cannot be depreciated. The combined tax burden — corporate tax plus dividend tax — should be compared to the individual regime (10% income tax + possible CASS) to determine which structure is more efficient for the specific situation.

17. Personal Versus Company Ownership: Tax Comparison

The SRL is not automatically more tax-efficient. For a single residential apartment generating modest rental income, individual ownership is typically simpler and often cheaper after accounting for the SRL’s compliance costs. The SRL becomes advantageous when: the property is commercial; actual expenses (including depreciation) significantly exceed the fixed deduction; multiple properties generate substantial income; or the owner is a non-EU citizen who needs an SRL for land ownership anyway.

18. Commercial Property Taxation

Commercial property carries higher building tax rates, requires periodic professional revaluation for tax purposes, generates rental income subject to VAT (21% standard rate, with the option to tax), and involves service charges, operating permits, and property management costs that residential property does not. Income from commercial tenants is subject to corporate tax (if owned by an SRL) or individual income tax (if owned personally). The higher tax burden is offset by typically higher rental yields and the ability to deduct actual business expenses through a company structure.

19. Tax Exemptions and Incentives

Certain properties benefit from tax exemptions or reductions: buildings and land in recognized industrial parks (parcuri industriale) may be exempt from local building and land tax; listed heritage buildings may qualify for reductions; properties owned by religious, educational, or charitable organisations are generally exempt; and some municipalities offer temporary exemptions or reductions for energy-efficiency improvements or new construction meeting specific criteria. Exemptions are not automatic — they require an application with supporting documentation to the relevant local tax authority.

20. New Buildings and Construction

The building tax obligation arises when a new building is completed and registered — typically upon issuance of the completion certificate (proces verbal de recepție) and cadastral registration. The owner must declare the new building at the local tax authority within 30 days. Extensions, additions, or modifications that increase the building’s area or value also trigger a revised declaration. Unregistered extensions are a common source of back-tax assessments and penalties when discovered — typically during a sale or an inspection.

21. Multiple Properties

Each property is taxed separately by the municipality where it is located. An owner with properties in Bucharest, Cluj-Napoca, and Constanța receives three separate tax assessments and must pay three separate tax bills. Rental income from all properties is aggregated for income tax and CASS purposes — the CASS threshold applies to the total passive income, not per-property. Owners of multiple short-term rental properties should monitor whether their aggregate activity crosses the seven-room threshold, triggering reclassification as independent economic activity.

22. Joint Ownership and Spousal Taxation

Romanian tax law treats each spouse as a separate taxpayer — there is no joint tax return. If a property is jointly owned (comunitate de bunuri), each spouse is assessed for their proportional share of the building and land tax. Rental income from jointly owned property is allocated proportionally to each co-owner, and each co-owner reports and pays tax on their share independently. CASS is calculated on each individual’s total passive income — not on the household’s combined income.

23. Tax Obligations in the Owner’s Home Country

Paying Romanian property taxes does not eliminate the owner’s tax obligations in their country of tax residence. Most countries require residents to declare worldwide income — including Romanian rental income and property gains. The Romanian tax paid is typically creditable against the home-country tax under a double tax treaty, but the mechanism varies: some treaties provide a direct credit, others provide exemption with progression. The owner should obtain a certificate from the Romanian tax authorities confirming the tax paid, convert amounts to the home-country currency at the applicable rate, and file the required declarations within the home-country deadline.

24. Property Ownership and Tax Residency

Owning property in Romania does not make the owner a Romanian tax resident. Tax residency is determined by physical presence (generally 183 days in any 12-month period), the centre of vital interests, and the habitual abode. An individual who owns a Romanian apartment but lives and works in London, Paris, or Tel Aviv is not a Romanian tax resident by virtue of that ownership. Conversely, an individual who spends extended periods in Romania — regardless of property ownership — may become a Romanian tax resident and subject to Romanian taxation on worldwide income. The distinction matters enormously and should be monitored, particularly by owners who spend significant time at their Romanian property.

25. Taxes on Property Sale

Individual sellers pay a transfer tax: 1% of the transaction value for properties owned more than three years, 3% for three years or less. The tax is calculated and withheld by the notary. Company sellers pay corporate tax on the profit (sale price minus tax-adjusted book value). VAT may apply to new buildings and building land. The seller may also have tax obligations in their country of residence on the gain from the sale — subject to double tax treaty provisions. Detailed treatment of sale costs is covered in our separate guide: Property Sale Costs in Romania.

26. Inheritance and Gift Tax

Romania does not impose a general inheritance tax or gift tax. However, transfers of property through inheritance or donation may trigger notarial fees, Land Book registration costs, and — in certain circumstances — income tax implications. Inheritance proceedings (succesiune) must be formally completed at a Romanian notary, and the heir’s ownership must be registered in the Land Book. If the inheritance is concluded more than two years after the death, an additional fiscal provision may apply. The heir’s country of residence may impose its own inheritance or estate tax on Romanian property — this must be checked separately.

27. Documents a Foreign Owner Should Retain

• The purchase contract and Land Book extract
• The NIF documentation
• Annual tax assessments (decizii de impunere) and payment confirmations
• Lease agreements
• Rental income records and bank statements
• Annual tax declarations filed in Romania
• CASS calculations and payments
• Energy certificate
• Insurance policies
• Receipts for improvements and repairs (relevant for future sale tax calculations)
• Certificates of Romanian tax paid — essential for claiming foreign tax credits in the owner’s home country

28. Common Tax Mistakes by Foreign Owners

• Not registering the property with the municipality. The notary registers ownership in the Land Book — but tax registration at the local tax office is a separate step the owner must take within 30 days.
• Assuming 2025 tax amounts apply in 2026. The 2026 statutory taxable values for residential buildings were substantially increased. Last year’s bill is not a reliable guide to this year’s.
• Ignoring the land tax. Building tax and land tax are separate. Paying one does not cover the other.
• Not declaring rental income. Romanian-source rental income is taxable regardless of whether the owner is a Romanian resident. Non-declaration triggers penalties and interest.
• Forgetting CASS. The health contribution is often overlooked. If total passive income exceeds the threshold, CASS is due — and the amounts are significant (10% on a fixed base of up to 24 minimum wages).
• Treating Airbnb as long-term rental. Short-term rental has a different expense deduction (30% vs 20%), different reporting, and different thresholds for reclassification as economic activity.
• Not checking the special high-value property tax. Owners of residential buildings with a taxable value above 2.5 million RON must self-assess and file separately.
• Not declaring Romanian income in the home country. Paying tax in Romania does not automatically satisfy obligations elsewhere. The owner’s home-country tax adviser must be involved.

29. Tax Compliance Checklist for Foreign Property Owners

Frequently Asked Questions