In brief
In 2026, what became more expensive in Romania was mainly buying a new home and holding a property: the reduced 9% VAT track closed on 30 September 2026 and 21% has applied since then, the calculation value of the local building tax rose to 2,677 lei per sq m with no age discount, the luxury tax rose to 0.9% and the dividend tax to 16%. The tax on rental income of individuals, the tax on sale and the absence of a purchase tax have not changed. The figures are correct as of October 2026 and may change again.
Key takeaways
- 1VAT: from 1.10.2026 every new home that a developer sells to an individual is subject to 21%, after the 9% transitional track ended on 30.9.2026.
- 2Local building tax: the calculation value rose from 1,492 to 2,677 lei per sq m, and the discount for old buildings was abolished.
- 3Luxury tax: 0.9% (instead of 0.3%) on the portion above a taxable value of 2.5 million lei.
- 4Dividends: 16% on every distribution from 1.1.2026, including from profits of previous years; the micro-company ceiling fell to 100,000 euro.
- 5Unchanged: 10% on rent after a 20% deduction, 3% or 1% on sale, and there is no purchase tax.
Over the last year and a half Romania has passed several tax packages in a row, and anyone relying on a guide from a year ago is working with figures that are no longer correct. This guide brings the changes together according to the question that interests an investor: what they mean for you when you buy, hold, rent out or sell.
Where did the changes come from?
Most of the changes originated in two fiscal packages that the government passed in 2025 to reduce the deficit, and in one amendment from 2026:
| Law | What it included | When it took effect |
|---|---|---|
| Law 141/2025 (the first package) | VAT increase; dividend tax increase | VAT: 1.8.2025; dividends: 1.1.2026 |
| Law 239/2025 (the second package) | Local taxes on buildings and land; the luxury tax | 1.1.2026 |
| Law 161/2026 | Extension of the 9% VAT transitional track | Until 30.9.2026 |
Local building tax: the calculation value rose from 1,492 to 2,677 lei per sq m, and the discount for old buildings was abolished.
How much VAT is paid today on a new home from a developer?
21%. The standard VAT rose from 19% to 21% on 1 August 2025, and the reduced 9% rate for housing was abolished. Previously, 9% applied to a home of up to 120 sq m and up to 600,000 lei, and 19% above that. For those who signed a preliminary contract by 1 August 2025, a transitional track was established, which ended on 30 September 2026. Since then, every new home that a developer sells to an individual is subject to 21% (as of October 2026).
A "+TVA" price (plus VAT) and a total price are not the same thing. When comparing projects, compare the final price you will pay, including VAT.
How much does it cost to hold a property after the building tax change?
More. The value per sq m on which the local building tax is calculated (for a building with utilities) rose from 1,492 lei in 2025 to 2,677 lei in 2026, an increase of about 79%. At the same time, the discounts for old buildings, which previously reached 10% to 50% depending on the building's age, were abolished.
The rate itself remained in the range of 0.08% to 0.2%, as decided by the local authority, but the rate for 2026 cannot be lower than that for 2025. Land tax values also rose. The exact calculation for your property is made by the local authority.
Who pays the increased luxury tax?
Only owners of a residential building whose taxable value exceeds 2,500,000 lei. The rate rose from 0.3% to 0.9% on the portion above the threshold. Payment is made to ANAF, on form 216, by 30 September. Because the threshold is measured by the taxable value and not by the market price, most family villas are far from it.
What changed for those who hold a property through a Romanian company?
- Dividend tax: rose from 10% to 16% for every dividend distributed from 1 January 2026, even if the profit was accumulated earlier.
- Micro regime: the turnover ceiling for a micro-company fell to 100,000 euro (in 2025: 250,000 euro).
This combination makes it more expensive to take profits out of a company (SRL). Anyone considering holding a single property through a company should re-examine the calculation against holding as an individual, with a tax adviser.
Has the tax on rent changed?
No. An individual who rents out a property pays 10% on the income after an automatic 20% deduction, as since 2024. What has moved is the minimum wage, from which the health contribution threshold (CASS) is derived: 4,050 lei per month from January to June 2026, and 4,325 lei from July. A 10% health contribution applies above an annual income of 24,300 lei, with a ceiling of 97,200 lei.
And on sale: has the tax gone up?
No. An individual pays 3% of the transaction value if he or she held the property for up to three years, and 1% thereafter. The exemption threshold of 450,000 lei was abolished back on 1 January 2023, and 2026 did not reinstate it. And even after all the changes, Romania has no purchase tax as in Israel: on the day of signing you pay the notary and registration, and for a new home from a developer also VAT.
All the changes in one table
| Subject | Before | As of October 2026 |
|---|---|---|
| VAT on a new home for an individual | 9% up to 120 sq m and 600,000 lei, otherwise 19% | 21% on every new home |
| Building tax value per sq m (with utilities) | 1,492 lei (2025) | 2,677 lei |
| Discount for an old building | 10% to 50% depending on age | Abolished |
| Building tax rate | 0.08%-0.2% | 0.08%-0.2%, and not less than in 2025 |
| Luxury tax on a residential building | 0.3% above 2.5 million lei | 0.9% above 2.5 million lei |
| Dividend tax | 10% | 16% |
| Turnover ceiling for a micro-company | 250,000 euro (2025) | 100,000 euro |
| Tax on rent, individual | 10% after a 20% deduction | No change |
| Tax on sale, individual | 3% up to three years, 1% thereafter | No change |
| Purchase tax | None | None |
What does this change on the Israeli side?
The tax rules in Israel have not changed as a result of the Romanian legislation. An Israeli resident continues to report income from the property and gains on sale, and receives a credit for the Romanian tax under the tax treaty. What does change is the amount of the credit, because the Romanian tax itself has moved. And those with a variable-rate mortgage in lei should also note the IRCC index, which stands at 5.57% from 1 October 2026.
What to do before the next transaction, and how we accompany you
Before a purchase, and especially before purchasing a new home or deciding on a holding structure, it is worth updating the calculation under the 2026 rules. We examine the legal aspects of the transaction and of the holding structure and coordinate with tax advisers and with lawyers and notaries licensed in Romania, who carry out the actions under local law. The two-country calculation is best built with a tax adviser who knows both countries.
What is stated here is general information correct as of October 2026 and is not tax advice or legal advice. Tax laws in Romania changed several times in 2025-2026 and may change again; before any transaction, the current position should be checked.
Frequently asked questions
How much VAT is paid in 2026 on a new home in Romania?
21%. The 9% VAT transitional track, for those who signed a preliminary contract by 1 August 2025, ended on 30 September 2026, and since then every new home that a developer sells to an individual is subject to the full rate.
Did the tax on rental income in Romania go up in 2026?
No. An individual pays 10% after a 20% deduction, as since 2024. The health contribution threshold is derived from the minimum wage and in 2026 stands at an annual income of 24,300 lei.
What dividend tax applies in Romania from 2026?
16%, on every dividend distributed from 1 January 2026, even if the profit was accumulated in previous years. Until the end of 2025 the rate was 10%.
Is there a purchase tax in Romania?
No. On the day of signing you pay the notary's fee and the registration fee, and for a new home from a developer also VAT, but there is no purchase tax in the Israeli sense.
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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.