Real Estate Tax Guide: Romania

A quick overview of Romanian Real Estate

Disclaimer: The scope of this Guide is to present a brief description of the Romanian real-estate taxation rules and legislation. It was not intended to be either a tax advice or a consulting report. The use of this Guide outside its declared scope, without contacting RSM Romania's specialists and experts, will be at the user's risk.  

Rental income and capital gains: Romanian real estate

*In 2026, net taxable rental income is determined by deducting a 20% flat expense allowance from the gross rental income (no supporting documentation is required). 
**In 2026, the tax rates are 1% of the selling price for real estate owned for more than 3 years and 3% on the selling price in all other cases. 

Rental income for individuals

Income from the rental of real estate properties is taxable in Romania.

Liability to tax: All individuals, resident or non-resident in Romania, who own real estate properties located in Romania and rent them out are liable to tax in Romania. Non-resident individuals must register for personal income tax in Romania.

Basis to tax: According to the provisions of the Romanian Tax Code, rental income is the taxable base, calculated by deducting a (non-documented) 20% flat expense allowance from the gross annual rental revenue, as shown in the rental agreement concluded between the parties. The rental agreement must be reported to the tax office. In addition to income tax, a healthcare contribution is also due if the owner's annual personal income exceeds the minimum threshold set by law. Residents of an EU country other than Romania are exempt if they show an A1 certificate in Romania. For tourism purposes, there are other applicable tax provisions.

Rental income for companies

Revenues from the rental of real estate properties located in Romania are taxable in Romania.  

Liability to tax: All companies, resident or non-resident in Romania, are liable if they own real-estate properties located in Romania and rent them out. Non-resident companies must register for CIT in Romania.

Basis to tax: Under the Romanian Tax Code, rental revenues, as reflected in the rental agreement, are included in the company's taxable income. The related expenses are deductible. Rental income is not calculated or taxed separately; it is included in the company's total taxable income and taxed at a 16% CIT rate. Non-resident companies must register for CIT in Romania, calculate, report, and pay it in accordance with the same rules as resident companies.

Capital gains for individuals

In Romania, when real estate assets are sold, tax is due on the revenue from the sale, not on capital gains. 
Capital gains from the alienation of shares in a Romanian company that owns primarily real estate assets located in Romania are also subject to personal income tax in Romania.

Liability to tax: Individuals, resident or non-resident in Romania, who either sell real-estate properties located in Romania or alienate shares in a Romanian company that owns mainly real estate assets, are liable to tax in Romania. Non-resident individuals must register in Romania.

Public notaries who notarize the sale of real estate assets are obligated to withhold, report, and remit the tax to the tax office. Individuals have the obligation to pay tax and to report any sale of shares in a Romanian company that primarily owns real estate assets, whether they realize a capital gain or a loss, through the so-called "unique" annual tax return. Where a DTT is in place, its provisions prevail over those of domestic legislation.

Basis of tax: According to the Tax Code, in 2026, the taxable base for real estate properties (land included) is the selling price. The following tax rates are applied to the taxable base:

• 1% on the selling price for real estate assets alienated and owned for more than 3 years;
• 3% on the selling price for real estate assets alienated and owned for less than 3 years.

In the case of alienation of shares in a company that owns mainly real estate assets located in Romania, the taxable base is the difference between the sale price and the shares' fiscal value, plus commissions and other expenses incurred in the sale. The capital gain is subject to the personal income tax at the flat rate of 10% and must be reported and paid by May 25 of the year next to the reporting year.

The capital gain from the sale of agricultural land or of shares in a company that owns agricultural land may be subject to up to 80%, depending on the conditions of the sale.

Capital gains for companies

Revenues of a company from the alienation of either real-estate property located in Romania or shares in a Romanian company that owns mainly real estate assets located in Romania are taxable in Romania. The capital gain is taxed as company profit.

Liability to tax: Companies, resident or non-resident in Romania, that either sell real estate properties located in Romania or alienate shares in a Romanian company that owns mainly real estate assets located in Romania are liable to tax in Romania.

Basis of tax: According to Romanian Tax legislation, for the sale of real estate, the revenue stipulated in the sale agreement is included in the company's quarterly/annual taxable income. The fiscal value of the property is deductible, along with all other expenses generated by the sale. The capital gain from the sale is not taxed separately, but it is included in the company's total taxable profit and taxed at a 16% CIT rate.

The profit from the sale of agricultural land or of shares in a company that owns agricultural land may be subject to up to 80% tax, depending on the conditions of the sale.

Revenues from the alienation of shares in a Romanian company that owns primarily real estate assets (including land) are also subject to Romanian CIT at a 16% rate. The fiscal value of the shares, plus commissions/other expenses generated by the sale, is deductible. If the seller has owned at least 10% of the shares for more than 1 (one) year, the profits (capital gains) from the sale are not taxable (the revenues are non-taxable, and the expenses generated by the sale are not deductible). The capital gain from the sale of agricultural land or of shares in a company that owns agricultural land may be subject to up to 80%, depending on the conditions of the sale.

Where a double taxation treaty (DTT) between Romania and a certain country is in place, the more favourable provisions of that treaty prevail over the domestic tax legislation.

Exemptions: The tax on revenues from the alienation of real estate properties is not due in case of donations between relatives up to the third degree, between spouses, and in other cases expressly mentioned by the Tax Code.

Romanian VAT and Transfer Taxes

Romanian VAT for Individuals

The Romanian VAT legislation is harmonised with the EU VAT Directives and is applicable to both resident and non-resident individuals doing business in Romania.

Liability to tax: Rental of real estate assets is VAT exempt by default. An individual may opt to become a VAT payer.
As a rule, the transfer of real estate assets is exempt from VAT. Transfer of new buildings and buildable land is, as an exception, taxable. Individuals become liable to VAT if they sell two or more real estate properties per year, of which at least one is either a new building or a plot of buildable land. The same liability treatment is applicable to both resident and non-resident individuals.

Basis of tax: Rental income is tax-exempt by default. If the individual, resident or non-resident, opts for taxation, the tax basis is the rental income. For the transfer of real estate assets, the taxable base is the transaction price.

Romanian VAT for Companies

The Romanian VAT legislation is harmonised with the EU VAT Directives and is applicable to both resident and non-resident companies doing business in Romania.

Liability to tax: Rental of real estate assets is VAT exempt by default. A company, either resident or non-resident, may opt to become a VAT payer. All resident companies and non-resident companies established in Romania for VAT purposes that make transfers of new buildings and/or buildable land are liable to VAT after their annual revenues exceed the RON 300,000 threshold. Transfers of old buildings and non-buildable land are tax-exempt, but their values are taken into account when calculating the RON 300,000.

Basis of tax: Rental revenue is tax-exempt by default. If the company, resident or non-resident, opts for taxation, the basis of tax is the rental revenue. For the sale of real estate assets, the taxable base is the transaction price.

Transfer Taxes

There are no transfer taxes in Romania for individuals or companies, whether resident or non-resident.

Romanian Local Taxes

Local Taxes

Local taxes are a source of revenue for the municipality's budget. They may be calculated at different rates, depending on each municipality's administration, within the limits set by the Tax Code.

Liability to tax: All individuals, resident or non-resident, owning real estate assets are liable to local (municipality) tax on buildings and/or land. All companies and other legal entities, resident or non-resident, owning real estate assets are liable to local (municipality) tax on buildings and/or land.

Basis of tax: For individuals, the taxable base for buildings is set by local municipalities and may change from year to year. It may also be changed by the taxpayer, based on a valuation report prepared by a professional appraiser.
For land tax, the amount/square meter is provided annually by local municipalities.

Romanian Net Wealth/worth taxes

Taxes on net wealth/worth were introduced in Romania for individuals/companies as follows:

• Special Tax for high-value residential buildings - due by individuals
• Special Tax for high-value motor vehicles - due by individuals/companies
  Introduction

The special tax on high-value residential buildings is due for residential buildings located in Romania with a taxable value exceeding RON 2.500.000 (~ Euro 500.000). The special tax on high-value motor vehicles is due for motor vehicles registered in Romania with an acquisition value exceeding RON 375.000 (~ Euro 75.000).

Liability to tax: All individuals, resident or non-resident, owning residential buildings located in Romania with a taxable value exceeding RON 2.500.000 (~ Euro 500.000) are obliged to pay the special tax for high-value residential buildings annually. All individuals, companies, and other legal entities owning motor vehicles registered in Romania with an acquisition value exceeding RON 375.000 (~ Euro 75.000) are obliged to pay the special tax for high-value motor vehicles annually. Both special taxes are paid in addition to the local taxes.

Basis of tax: For the special tax on high-value residential buildings, the taxable value is determined as the difference between the property's value and the non-taxable value of RON 2.500.000 (~ Euro 500.000). The special tax rate is 0.9% and is applied to the taxable value. For special tax on high-value motor vehicles, the taxable value is determined as a difference between the acquisition value and the non-taxable value of RON 375.000 (~ Euro 75.000). The special tax rate is 0.9% and is applied to the taxable value. This special tax is due for only 5 years, starting with the fiscal year in which the motor vehicle is delivered.