Specific Taxes in Romania: VAT, Property, Luxury and Transfer Taxes Explained

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You know Romania's headline 10% rate. What you really pay also depends on the smaller taxes: on your flat, your car, your purchases and the house you sell. This guide maps every specific tax an individual meets in Romania in 2026, what it costs, who pays it as resident or non-resident, and where you can legally save.

Romania specific taxes in 2026: the key figures

Is this guide for you?

Read on if you…

• own or plan to buy a home or car in Romania and want the full carrying cost;
• sell a Romanian property this year and need the transfer tax figure;
• are comparing Romania's overall tax load with another country before moving.

Probably not your case if you…

• are only interested in income tax and social contributions; the Romania tax landscape overview covers them;
• run a company and need corporate-level taxes; see corporate income taxes in Romania.

How much VAT do you pay in Romania?

Romania's standard VAT rate rose from 19% to 21% on 1 August 2025 and stays there in 2026. The two old reduced rates of 5% and 9% were merged into a single 11% rate. It covers food, non-alcoholic drinks without added sugar, medicines, books and newspapers, hotel accommodation, restaurant and catering services, water supply and firewood. Housing lost most of its reduced rate: new homes are taxed at 21%, except deliveries under pre-contracts signed before the change, which keep 9% until mid-2026.

For a consumer, VAT is simply built into prices. For a freelancer it matters twice. First, you must register for VAT once your turnover passes RON 395,000 in a year. Second, services to business clients in other EU countries are reverse-charged, so a PFA or SRL billing abroad often charges no Romanian VAT at all. Non-residents pay Romanian VAT on local purchases like everyone else; non-EU visitors can reclaim it on goods they export.

What do you pay on property you own or sell?

Owning: local building and land tax

Every owner pays an annual building tax to the local council. For residential buildings the rate is between 0.08% and 0.2% of the taxable value, which is a schedule value set by law, not the market price. For a 70 m² apartment in Bucharest the bill is typically RON 300 to 800 a year. Non-residential buildings owned by individuals, such as an office you own, carry 0.2% to 1.3%. Land tax applies separately by zone and use.

Councils may raise rates by up to 50% and must apply increases of up to 500% on neglected or unkept buildings. The tax is due in two instalments, 31 March and 30 September; most councils give a 10% discount for paying the full year by 31 March. Non-residents pay exactly the same.

The 0.3% special tax on high-value goods

Since 2024 individuals owning residential property with a taxable value above RON 2.5 million pay 0.3% on the excess by 30 April each year. Cars with a purchase price above RON 375,000 carry 0.3% on the excess for five years from first registration, due by 31 December. Most apartments fall far below the threshold; the tax mostly hits villas and high-end cars.

Selling: the property transfer tax

When an individual sells real estate, the notary withholds a transfer tax:

The first RON 450,000 is exempt in both cases. No capital gains computation applies to individuals selling property, so there is no deduction for purchase price or renovation costs. For shares, funds and crypto the rules differ; see capital gains tax in Romania.

Renting out

Rental income is taxed at 10% on gross rent less a 20% flat deduction, plus CASS of 10% on 6, 12 or 24 minimum wages once your total investment income passes 6 minimum wages. Corporate tenants withhold the tax.

What other specific taxes affect individuals?

• Vehicle tax: an annual local tax based on engine capacity, roughly RON 100 to 1,500 for ordinary cars; hybrids get a 50% to 95% discount and electric cars are exempt in most councils.
• Excise duties: on petrol and diesel, alcohol, tobacco and, since 2024, non-alcoholic drinks with added sugar above 5 g per 100 ml. They are built into retail prices.
• Gambling winnings: taxed at source at 3% up to RON 10,000, 20% on the next band up to RON 66,750, and 40% above, per payout.
• Health contribution (CASS) as a quasi-tax: residents without salary income pay 10% on investment income thresholds and can opt in at 6 minimum wages to keep public health cover.
• Inheritance and gifts: no tax. A 1% charge applies to the estate only if heirs complete the succession more than two years after the death. Notary fees are separate.
• Dividend tax: 16% from 1 January 2026, withheld at source, for residents and non-residents alike.
• Wealth tax: none. Romania taxes neither net worth nor financial assets held abroad, though residents must declare foreign income.

Non-residents pay the same local, property and consumption taxes as residents. The only difference is withholding on Romanian-source income, which treaties can reduce; our guide to the international tax treaties of Romania explains how.

How can you legally pay less?

• Hold property more than three years before selling. The transfer tax drops from 3% to 1% on the amount above RON 450,000.
• Pay local taxes by 31 March for the 10% discount most councils offer.
• Keep cars under RON 375,000 and homes under the RON 2.5 million schedule value, or accept 0.3% on the excess as the price of the upgrade.
• Structure big-ticket purchases by VAT status. A VAT-registered SRL recovers 21% on business equipment; an individual cannot.
• Watch the CASS bands on rent and dividends. Spreading income across years can keep you below a threshold.

Common mistakes (and what they cost)

• Selling property a few months before the 3-year mark → Transfer tax of 3% instead of 1%; RON 12,000 extra on a RON 600,000 taxable amount.
• Ignoring the VAT threshold as a freelancer → Late registration after RON 395,000 means ANAF assesses 21% VAT on sales you never charged.
• Forgetting the 0.3% luxury tax return → It is self-declared; missing the 30 April deadline adds interest and penalties on a tax most people have never heard of.
• Paying local taxes in October → You lose the 10% March discount and pay late-payment interest on the first instalment.
• Assuming no inheritance tax means no deadline → Completing the succession after two years triggers the 1% charge on the whole estate.

Frequently asked questions

What is the VAT rate in Romania in 2026?

The standard rate is 21%, applied since 1 August 2025. A single reduced rate of 11% covers food, medicines, books, hotels, restaurants, water and similar items. Most new housing is now at 21%, with a transitional 9% for pre-contracts signed before the increase. Freelancers must register for VAT above RON 395,000 of annual turnover.

How much is property tax in Romania?

Residential buildings carry an annual local tax of 0.08% to 0.2% of a schedule value fixed by law, typically a few hundred RON for an apartment. Non-residential buildings owned by individuals pay 0.2% to 1.3%. Councils can raise rates by up to 50%. The tax is payable by 31 March and 30 September, often with a 10% discount for early full payment.

What tax do I pay when selling a house in Romania?

Individuals pay a transfer tax withheld by the notary: 3% of the sale price above RON 450,000 if you owned the property for up to three years, or 1% if longer. The first RON 450,000 is exempt. No capital gains tax applies to individuals on real estate, and purchase costs are not deductible.

Does Romania have a wealth tax or inheritance tax?

No general wealth tax and no inheritance or gift tax. The only related charge is a 1% tax on the estate when heirs finalise the succession more than two years after the death. A separate 0.3% tax applies annually to residential property valued above RON 2.5 million and to cars costing over RON 375,000.

What is the Romanian luxury tax?

A special tax of 0.3% introduced in 2024. It applies to the part of a residential property's taxable value above RON 2.5 million, due by 30 April, and to the part of a car's purchase price above RON 375,000, for five years from registration, due by 31 December. Owners self-declare it with the local tax office.

Do non-residents pay these taxes too?

Yes. VAT, excise, building, land, vehicle, transfer and luxury taxes apply to anyone who buys, owns or sells in Romania, regardless of residence. Non-residents additionally face withholding on Romanian-source income such as dividends at 16%, which double tax treaties can reduce with a residence certificate.

Related guides

• Capital gains tax in Romania
• Personal tax deductions and benefits in Romania
• Corporate income taxes in Romania
• International tax treaties of Romania
• Romania tax landscape overview
• Specific taxes in Bulgaria
• Specific taxes in Hungary
• All country tax guides

Sources

• Romanian Fiscal Code, Law 227/2015 (Legislative Portal)
• ANAF – National Agency for Fiscal Administration
• Ministry of Finance of Romania
• European Commission – VAT rates applied in EU member states
• PwC Worldwide Tax Summaries – Romania, Other taxes

This guide is general information, not personalised tax advice. See how we research and review.