Non-Resident Tax in Romania on Property Income: The 2026 Guide
Non-Resident Tax in Romania on Property Income: The 2026 Guide
Many foreign property owners in Romania discover their filing obligation only after ANAF finds them first. That is not a position you want to be in. Romanian tax law is clear: non-resident tax in Romania on property income applies to all owners of Romanian property, regardless of where they live. It doesn’t matter if you’re based in Germany, the UK, the US, or anywhere else. If your property is in Romania and it generates rent, Romania taxes it.
Expert legal and tax guidance is essential for navigating the Romanian property market safely.The good news is that for standard long-term rentals the system is straightforward. The tax rate is a flat 10%, applied to a reduced taxable base. The filing process is digital. And if your home country has a double taxation treaty with Romania, you likely won’t pay tax twice on the same income.
This guide reflects the current rules so you can understand your position and file correctly. Where the law is still developing or requires professional interpretation, we say so clearly.
Whether you’re already renting out an apartment in Bucharest or considering buying property in Romania, understanding your tax position from the start saves time, money, and stress.
Do Non-Residents Have to Pay Tax on Romanian Property Income?
Yes. Romania taxes income generated within its territory, regardless of where the property owner lives. This means rental income from any Romanian property is taxable in Romania, whether you are a resident of an EU country or anywhere else in the world. The obligation to declare and pay applies every year, as long as you earn rental income from the property.
This is what tax professionals call source-based taxation. According to ANAF’s official guidance on fiscal residence, non-resident individuals are liable to Romanian tax only on their Romanian-source income. Rental income from a property located in Romania is, by definition, Romanian-source income.
Bucharest remains a prime location for international real estate investment.The obligation covers the following categories:
- Long-term residential rentals (apartments, houses, rooms)
- Commercial real estate leases (offices, retail spaces, warehouses)
- Short-term rentals through platforms like Airbnb or Booking.com
- Agricultural land leased to farming operators
There is no minimum income threshold that removes the obligation. Even a single month of rental income creates a filing requirement. The only question is which regime applies and how much you owe.
If you’re also exploring Romanian property law services for your broader investment needs, it’s worth addressing your tax position alongside your legal structure from the outset. Specialized land registry verification can also help ensure your tax record matches your ownership status.
What Law 239/2025 Actually Changed for 2026 (and What It Didn’t)
Several guides published in early 2026 overstate what Romania’s most recent tax legislation changed for property owners. It’s worth being precise, because the actual changes are narrower than much of the commentary suggests.
Law 239/2025 was published in Romania’s Official Journal in December 2025 and entered into force on 18 December 2025. Its income tax provisions apply to income earned from the 2026 fiscal year onwards.
What Law 239/2025 did not change: the long-term rental flat deduction. The 20% flat expense deduction for long-term rentals has been in place since 1 January 2024, introduced by Emergency Ordinance 115/2023 (OUG 115/2023). It replaced a transitional zero-deduction period in 2023 that followed the earlier 40% regime. If you filed correctly for 2024 and 2025, you were already using the 20% deduction. Law 239/2025 left this unchanged.
What Law 239/2025 primarily addressed is the short-term rental sector. The legislation introduced modifications to how short-term rental income is classified and taxed, including changes to the threshold above which rental activity is reclassified as independent commercial income. However, as explained in the section below, the practical application of these changes is still developing and requires individual assessment.
For long-term landlords, 2026 does not bring material change. For owners operating short-term rentals, the picture is more complex and professional advice is strongly recommended before filing.
How Is Tax Calculated on Long-Term Rental Income?
For long-term rentals, Romania applies a 20% flat expense deduction to gross income. You then pay 10% income tax on the remaining 80%. This makes the effective tax rate on gross rent exactly 8%. No receipts or documentation are required to claim the deduction. It is applied automatically when you file your return.
This deduction has been in place since 1 January 2024 under OUG 115/2023 and remains unchanged for 2026.
Here is the full calculation:
| Step | Amount / Rule |
|---|---|
| Gross annual rental income | €10,000 |
| Flat deduction (20%) | €2,000 |
| Taxable income (80%) | €8,000 |
| Tax due (10% of taxable base) | €800 |
The maths is simple. The challenge for most foreign owners isn’t the calculation. It’s knowing they need to do it at all, and filing on time.
A note on social contributions (CASS). This is an area where the rules are more nuanced than many guides suggest, and the position for non-residents is not identical to that of Romanian residents. Whether CASS applies depends on several factors: the type and total amount of Romanian-source income you earn, how that income aggregates across different categories, and whether you fall within Romania’s social insurance obligations as a non-resident. If your rental income is substantial, it is essential to verify your CASS position specifically with a Romanian tax law adviser before filing.
Short-Term Rentals: What Changed and What Is Still Developing
Short-term rental taxation in Romania is the area of most active legislative change, and also the area where the greatest caution is required when reading guides published online.
Historically, income from renting up to 5 rooms on a short-term basis was taxed based on an income norm system (normă de venit), where ANAF assigned a fixed estimated annual income per room regardless of actual earnings.
Law 239/2025 introduced changes to this framework: it modified the room threshold above which short-term rental activity is reclassified as independent commercial income, and introduced provisions relating to the calculation of net income for short-term rentals. The legislation references a flat expense deduction approach as the new mechanism for determining net income in this category.
But the practical application of these changes is still developing. Full implementation depends on secondary legislation and updated ANAF methodological norms. As of the time of writing, the application of the new regime is not uniformly settled across ANAF interpretations.
What we recommend if you operate short-term rentals:
- Do not assume that a single flat deduction rate applies automatically to your situation
- Verify the current applicable regime with a tax specialist before filing
- Keep detailed records of income and rooms rented, as these affect both classification and calculation
- Be aware that ANAF has significantly increased monitoring of short-term rental platforms and has access to platform data
The direction of travel under Law 239/2025 is toward a simplified deduction approach for short-term rentals. But given that implementation is still developing, presenting precise numbers as settled would not be accurate. If you operate short-term rentals and want to understand exactly where you stand, contact our team for an assessment of your specific position.
How to File: The Declarația Unică Step by Step
Non-residents earning Romanian rental income must file the Single Tax Return (Declarația Unică), form D212, with ANAF. This form covers both income declaration and the establishment of any contribution obligations. The annual deadline is 25 May, confirmed by ANAF’s official 2026 filing guidance.
The Compliance Roadmap:
- Step 1: Obtain a Romanian tax identification number (NIF). This is different from a residency permit. Even as a non-resident, you must be registered with the tax authorities (ANAF). This can be done through a Romanian representative.
- Step 2: Register your lease contract with ANAF. Long-term rental contracts must be registered via the lease registration process. Failing to register the contract adds a separate compliance failure.
- Step 3: Complete the Declarația Unică electronically. The form is filed through the ANAF digital portal (SPV). Do not assume your data will be pre-populated correctly. Treat the return as something you need to complete and verify yourself.
- Step 4: Declare both years. The return covers your actual income from the previous year and your estimated income for the current year.
- Step 5: Pay by 25 May. Payment can be made through the SPV portal or via banking channels. Use the correct payment reference.
Filing the D212 is the most critical step in maintaining your legal standing in Romania.A note on withholding by Romanian companies. If your tenant is a Romanian legal entity, the company may in certain circumstances be required to withhold tax at source. You will still need to file the return, and any withheld amounts are credited against your total liability.
Can a Double Taxation Treaty Reduce Your Overall Tax Bill?
Yes, but not in the way most people expect. A double taxation treaty won’t reduce the Romanian tax you pay locally. What it does is prevent you from being taxed twice on the same income: once in Romania and again in your home country.
Treaty protection ensures you aren’t penalized for international investments.Romania has an extensive network of double taxation agreements, covering approximately 87 bilateral treaties. Most treaties work through one of two mechanisms:
- The credit method: your home country taxes all your income but grants you a credit for the Romanian tax already paid.
- The exemption method: your home country simply exempts Romanian-source income from domestic taxation.
The method applies depends on the specific treaty. Reviewing it before filing can meaningfully reduce your combined tax burden. If you’re also considering visa or residency options, be aware that changing your status has consequences for treaty application.
Real Case: How We Handled This for a Germany-Based Client
Our client was based in Germany and owned an apartment in Bucharest generating around €14,000 per year. They had not declared this income and were unsure about their obligations.
| Calculation Item | Value |
|---|---|
| Gross annual rental income | €14,000 |
| Flat deduction (20%) | €2,800 |
| Taxable income (80%) | €11,200 |
| Final tax due in Romania (10%) | €1,120 |
We clarified the position, registered the client, and filed the Declarația Unică. Because Germany and Romania have a double taxation agreement, the client was eligible for a tax credit in Germany. The overall burden was managed correctly for the first time.
Key takeaway: Compliance is not the obstacle people think it is. The obstacle is delay. The longer you wait, the more years of unfiled returns accumulate, and the more penalties accrue.
Conclusion
Non-resident tax in Romania on property income follows a clear, predictable framework for long-term rentals. The current rules apply a flat 10% rate after a 20% standard deduction, in place since 2024. The effective rate is 8% on gross rent. Filing is done annually via the Declarația Unică by 25 May.
For short-term rentals, Law 239/2025 introduced changes that are still developing in their practical application. If you operate in this category, professional advice before filing is not optional.
Three things matter most regardless of your rental type: understanding which regime applies to your specific situation, filing on time every year, and reviewing your double taxation treaty position to avoid paying more than you legally owe.
Secure Your Tax Position in Romania
Our legal team handles the entire process for foreign property owners: from NIF acquisition to expert filing and ANAF correspondence management.
Contact Our Tax SpecialistsFrequently Asked Questions
Do non-residents have to pay tax on rental income from Romanian property?
Yes. Romania taxes income generated within its territory, regardless of the owner’s country of residence. Both EU and non-EU nationals must declare Romanian rental income annually to ANAF and pay a flat 10% income tax on their net rental income. There is no minimum income threshold that removes this obligation.
What is the flat deduction for long-term rental income in Romania?
The flat deduction for long-term rentals is 20% of gross rental income. This has been in place since 1 January 2024, introduced by Emergency Ordinance 115/2023. It was not changed by Law 239/2025. No documentation is required to claim it: the deduction is applied automatically when you complete the Declarația Unică.
How is short-term rental income taxed in Romania in 2026?
Short-term rental taxation was modified by Law 239/2025, which introduced changes to both the classification threshold and income calculation method for this category. However, the practical application of the new rules depends on implementation through secondary legislation and updated ANAF guidance. The applicable regime varies based on your specific situation. If you operate short-term rentals, we strongly recommend professional advice before filing rather than relying on a single fixed calculation.
How do I file the Declarația Unică as a non-resident?
You must obtain a Romanian tax identification number, then file form D212 electronically through ANAF’s SPV portal by 25 May each year. The return covers your actual income from the previous year and your estimated income for the current year. Do not rely on the return being pre-filled: verify all data carefully before submitting. If you can’t access the portal directly, a local representative can file on your behalf.
What happens if I don’t declare my Romanian rental income?
Failing to file the Declarația Unică results in administrative penalties plus daily interest on any unpaid tax. ANAF has the authority to issue a tax assessment based on estimated income if no return is filed. Romanian tax authorities also have access to data from short-term rental platforms. The longer the delay, the larger the accumulated liability. Voluntary compliance, even for prior years, is almost always a better outcome than waiting to be found.
