Real Estate Taxes in Romania: A Simple Overview

by Simona Rotaru Property Law

 

When buying or selling property in Romania, it’s essential to consider the various taxes associated with the transaction. Real estate taxes in Romania include transfer tax, local taxes, registration fees, and property taxes.

  • The transfer tax is calculated based on the property’s purchase price and ranges from 0.5% to 3% depending on the location of the property.
  • Notary fees, which are typically between 0.5% and 2% of the purchase price, are paid to the notary public who oversees the transfer of property ownership.
  • Local taxes, which are based on the property’s value, range from 0.25% to 1%. Registration fees, which are paid to the Romanian Land Registry when registering the transfer of property ownership, are typically between 0.15% and 0.5% of the purchase price.

It’s important to note that real estate taxes in Romania can vary based on location and other factors.

Therefore, it’s advisable to consult with a Romanian real estate lawyer to get a precise estimate of the taxes involved.

In addition to real estate taxes, there are other costs associated with buying or selling property in Romania.

These include legal fees, survey fees, agency fees, mortgage fees, repairs and renovations, property management fees, utility connection fees, moving costs, and insurance.

  • Legal fees are typically between 1% to 3% of the purchase price, while survey fees range from 0.1% to 0.5%.
  • Agency fees typically range from 1% to 3% of the purchase price.
  • Mortgage fees include application fees, valuation fees, and arrangement fees.
  • Repairs and renovations costs vary depending on the work needed to be done.
  • Property management fees cover the cost of maintaining common areas in a condominium or apartment complex.
  • Utility connection fees vary based on location and services provided.

Property taxes in Romania are calculated based on the property’s value and are paid annually.

The rate of property tax varies depending on the property’s location, but it typically ranges from 0.08% to 0.2%.

To ensure an informed decision and protect your investment, it’s crucial to consult with a Romanian real estate lawyer who can provide a detailed breakdown of all the costs involved.

By carefully considering all of the costs associated with the transaction, you can make an informed decision and ensure that your investment in Romania is protected.