In brief
An owner of property in Romania, including an Israeli resident, pays the local authority an annual tax on the building (impozit pe clădiri) and a tax on the land (impozit pe teren). For a residential building owned by an individual, the rate is 0.08% to 0.2% of the taxable value, which rose in 2026 following Law 239/2025. After the purchase, the property must be declared to the local authority within 30 days, and the tax itself applies from 1 January of the following year.
Key takeaways
- 1The tax is paid to the local authority where the property is located, not to the national tax authority ANAF, and it applies to every property owner regardless of residence.
- 2The building tax rate for an individual's residential property ranges from 0.08% to 0.2% of the taxable value, according to the local council's decision (as of October 2026).
- 3From 2026, the taxable value per sq m of a residential building with all utilities rose to approximately 2,677 lei, and the age reduction for old buildings was abolished.
- 4Payment is made in two instalments, by 31 March and by 30 September; full payment by 31 March may qualify for a discount of up to 10%.
- 5A buyer of a building declares it to the local authority within 30 days of the purchase. Late filing is an administrative offence, and an unresolved debt will surface on the day of the sale.
Is an Israeli investor liable for annual property tax in Romania?
Yes. The tax applies to ownership of the property, not to the owner's place of residence, so an Israeli resident registered as the owner of an apartment or villa in Romania pays it like any local property owner.
Many Israelis hear that Romania has no purchase tax in the sense familiar to them, and conclude that there is no annual tax either. That assumption is wrong. The annual tax is not high compared with arnona (municipal tax) in Israel, but it exists, it rose in 2026, and anyone who ignores it usually runs into it at the least convenient moment: when trying to sell.
The building tax rate for an individual's residential property ranges from 0.08% to 0.2% of the taxable value, according to the local council's decision (as of October 2026).
Who is paid, and for what exactly?
The tax is local. It does not go through ANAF (Romania's national tax authority), but through the tax department of the authority in whose area the property is located. In Bucharest, this is the tax department of the relevant sector; outside the city, it is the municipality or the village council.
- impozit pe clădiri - the building tax, the main component. Most of this guide deals with it.
- impozit pe teren - the tax on the land on which the building stands. Anyone who buys a villa with a plot pays both.
The tax applies to the property even when it is empty, even when it is used only for holidays and even when it is rented out. It is entirely separate from income tax on rent.
What changed in property tax in 2026?
On 1 January 2026, Law 239/2025, known as the "second fiscal package", entered into force and changed the way local taxes are calculated. The practical result in most authorities is a higher tax than in the previous year.
| Component | Until 2025 | From 2026 |
|---|---|---|
| Taxable value per sq m, concrete or brick building with water, sewerage, electricity and heating | Approximately 1,472 lei (after indexation, varies slightly between authorities) | 2,677 lei |
| The same building without these utilities | Approximately 883 lei | 1,606 lei |
| Reduction for an old building | 15% for a building 50 to 100 years old, 25% over 100 years | Abolished |
| Tax rate for an individual's residential building | 0.08%-0.2% | 0.08%-0.2%, and not less than the rate the authority applied in 2025 |
| Land tax values | The previous values | Doubled to tripled, depending on the type of land use |
The per sq m values in the table are taken from the calculation table of the Buzău municipality for 2026. According to a report in Adevărul, in Sector 1 of Bucharest the tax on apartments almost doubled this year.
How is the building tax on an individual's house or apartment calculated?
The calculation is the product of four figures: area, value per sq m, zone coefficient and the authority's tax rate. Three of them are fixed by law or by local decision, so the tax can be estimated even before the purchase.
- Built area in sq m. Where there is no built area figure, the usable area is multiplied by 1.4.
- Taxable value per sq m. 2,677 lei for a building with all utilities, as of 2026.
- Zone coefficient. Set according to the rank of the locality and the zone within it. In Bucharest the coefficients range from 2.30 to 2.60.
- The authority's rate. Between 0.08% and 0.2%. Sector 5 in Bucharest, for example, applies 0.1%.
- No age reduction. From 2026 there is no longer a reduction for an old building, so do not rely on calculations from previous years.
| Calculation step | Operation | Result |
|---|---|---|
| New house, 150 sq m built | 150 × 2,677 lei | 401,550 lei |
| Zone with a coefficient of 2.60 | × 2.60 | 1,044,030 lei |
| Authority rate of 0.1% | × 0.1% | Approximately 1,044 lei per year |
| Full payment by 31 March, if the authority has approved a discount | Reduction of up to 10% | Approximately 940 lei |
This is an illustration only. It does not include the land tax, and the coefficient and the rate vary from authority to authority. The binding amount appears in the tax assessment notice that the authority sends you.
What must be done within 30 days of the purchase?
File a declaration of the property with the local tax department. Article 461 of the Fiscal Code (Law 227/2015) requires anyone who has acquired a building to declare it within 30 days of the date of acquisition, and the tax applies from 1 January of the year following the acquisition.
This is the step that investors from abroad forget most often. Anyone who has not filed a declaration does not receive a tax assessment notice, and therefore does not know that they owe anything. The debt accumulates quietly, and in addition late filing is an administrative offence that carries a fine.
- Ask the notary or the lawyer for a list of the documents required for the declaration on the day of signing.
- If you are not in Romania, arrange in advance who will file on your behalf and under which power of attorney.
- Keep the filing confirmation. It is the evidence that the property is registered with the authority in your name.
When is the tax paid, and how is the discount obtained?
The annual tax is paid in two equal instalments: by 31 March and by 30 September. Anyone who pays the full amount by 31 March may receive a discount of up to 10%, if the local council has decided on one and at the level it has set.
Payment can be made at the authority's cash desks, by bank transfer and, in many authorities, also through the national platform Ghișeul.ro (a government payment portal). For a property owner living in Israel, a Romanian bank account simplifies ongoing payment.
What happens when selling a property with a local tax debt?
Ahead of a sale, you will need to show that you have no local tax debts on the property. A debt that has accumulated for years without your knowledge will surface at this stage, and will have to be settled before the transaction can proceed.
It follows that on the buyer's side, too, it is advisable to ask the seller for an up-to-date certificate that there are no local tax debts on the property, and to make sure you are not taking over a property with an open problem.
Where does the annual tax stand relative to the other holding costs?
The building tax and the land tax are one line in the annual budget. Alongside them are insurance, maintenance and, if the property is rented out, also tax on rental income in Romania and reporting in Israel. It is advisable to build the annual forecast with all the lines together and not to rely only on the property tax amount.
What to do before signing and how we assist
Before a purchase, it is advisable to check with the local authority the coefficient and the rate applicable to the property, calculate an estimate of the annual tax and include it in the budget, and decide in advance who will file the declaration within 30 days. As part of our legal assistance, we check the status of the property's local debts, prepare the list of documents for the declaration and coordinate the steps with the notary and the authority. Acts under Romanian law, such as authentication of signatures and filing with the authorities, are performed by lawyers and notaries licensed in Romania.
What is stated here is general information as of October 2026 and is not legal or tax advice for a specific case. Rates, coefficients and the level of the discount are set by each local authority and change from year to year. Before making a decision, check with the authority or with a local tax adviser.
Frequently asked questions
How much annual property tax is paid on a villa or apartment in Romania?
For an individual's residential building, 0.08% to 0.2% of the taxable value, according to the local authority's decision. The value is calculated according to the area, a value per sq m of 2,677 lei for a building with all utilities, and a zone coefficient. In addition, land tax is paid on the plot.
Does an Israeli resident pay property tax in Romania?
Yes. The tax applies to every property owner regardless of place of residence, and the obligation to declare the property within 30 days of the acquisition also applies to them.
Why did property tax in Romania rise in 2026?
Law 239/2025 raised the taxable value per sq m of a residential building with utilities to approximately 2,677 lei, abolished the age reduction for old buildings and raised land values. At the same time, the authority could not reduce the rate below the 2025 rate.
When is property tax paid in Romania?
In two equal instalments, by 31 March and by 30 September. Full payment by 31 March may qualify for a discount of up to 10%, according to the local council's decision.
What happens if I did not declare the property after the purchase?
Late filing is an administrative offence that carries a fine, and the tax continues to accumulate even without a tax assessment notice. The debt will surface at the latest when you need a certificate of no local tax debts ahead of a sale.
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The information in this guide is general in nature and does not constitute legal or tax advice on any specific transaction. Every transaction is assessed on its own facts.