Taxes and fees are an important aspect to consider when purchasing or selling a house in Romania. The following is an overview of the taxes and fees typically involved in the process.
Property Tax
-The property tax in Romania is levied annually on the value of the property, and is calculated as a percentage of the property’s assessed value.
-For residential properties, the tax rate is 0.1-0.3% depending on the local municipality.
-For example, a residential property valued at 100,000 Romanian lei would have an annual property tax of 100-300 lei.
Capital Gains Tax (CGT)
-CGT is levied on the sale of a property and is calculated as a percentage of the profit made from the sale.
-The rate of CGT is 16% for Romanian residents, and 20% for non-residents.
-For example, if a Romanian resident sells a property for 200,000 lei that they purchased for 150,000 lei, their CGT would be calculated on a profit of 50,000 lei, and would amount to 8,000 lei (16% of 50,000 lei).
Inheritance Tax
-Inheritance tax is levied on the transfer of property through inheritance.
-The rate of inheritance tax in Romania ranges from 0% to 16%, depending on the relationship between the decedent and the heir.
-For example, if a property valued at 200,000 lei is transferred from a parent to a child, the inheritance tax would be 0%.
Gift Tax
-Gift tax is levied on the transfer of property as a gift.
-The rate of gift tax in Romania is 10%.
-For example, if a property valued at 200,000 lei is transferred as a gift, the gift tax would amount to 20,000 lei (10% of 200,000 lei).
Tax on Property Income
-If a property is rented out, the owner is required to pay tax on the rental income.
-The tax rate on rental income in Romania is 10%.
-For example, if a property is rented out for 1,000 lei per month, the owner would be required to pay 100 lei per month in tax on the rental income (10% of 1,000 lei).
Tax Advantages in Buying a House in Romania
-In Romania, there are no tax incentives for purchasing a property. However, the property tax on residential properties is relatively low compared to other countries.
It’s important to note that these are general guidelines and taxes and fees may vary depending on the specific circumstances of each case. It is always recommended to consult with a qualified tax advisor for up-to-date information and personalized advice.