In brief
From 2026 the owner of a residential building in Romania whose taxable value exceeds 2,500,000 lei pays 0.9% on the excess portion, instead of 0.3% previously. The threshold is tested against a value that the authority calculates using a formula of built area, value per sq m and a zone coefficient, and not against the market price. The declaration and payment are made to ANAF on Form 216 by 30 September.
Key takeaways
- 1The rate rose from 0.3% to 0.9% under Law 239/2025, and it applies only to the portion of the taxable value above 2,500,000 lei.
- 2The taxable value is built area multiplied by 2,677 lei per sq m multiplied by a zone coefficient. It is a formula, not a market price.
- 3In Bucharest, zone A, a building with all utilities passes the threshold only from about 359 sq m of built area. In a rural commune of rank IV, only from about 849 sq m.
- 4The tax is assessed for each building separately, applies to non-residents as well, and is added to the local building tax.
- 5Form 216 is filed with ANAF, not with the municipality, by 30 September, according to the ownership position on 31 December of the previous year.
Headlines in the Romanian press about a "tripled luxury tax" led many buyers to ask whether their villa is caught. The confusion is understandable: 2.5 million lei is about 467,000 euro, and the figure looks close to the prices of many houses. But this tax does not look at the price you paid. It looks at a formula that the local authority applies, and for most houses the result is far from the threshold.
What is the luxury tax in Romania, and what changed in 2026?
It is a special tax on "high-value" residential buildings, defined in Article 500² of the Romanian Tax Code (Law 227/2015). It applies to individuals who, on 31 December of the previous year, own a residential building in Romania whose taxable value is higher than 2,500,000 lei.
Law 239/2025, known as the "second fiscal package", tripled the rate: from 0.3% to 0.9% of the portion above the threshold. Following the change, ANAF, the Romanian tax authority, updated Form 216, on which the declaration and payment are made.
- It is an additional tax. It does not replace the local building tax paid to the municipality, but is added to it.
- It is assessed for each building separately. Two properties of 1.5 million lei each are not aggregated towards the threshold.
- It applies to non-residents as well. What matters is ownership of a building in Romania, not residence.
The taxable value is built area multiplied by 2,677 lei per sq m multiplied by a zone coefficient. It is a formula, not a market price.
How is the taxable value of a residential building calculated?
The threshold is measured against "the taxable value of the building, as communicated by the local authority". This value is calculated under Article 457 of the Tax Code, using the same formula that is used for the annual building tax. It has three components:
- Built area in sq m. For an apartment for which there is no built area figure, the usable area is multiplied by 1.4.
- Value per sq m. For 2026 it is 2,677 lei per sq m, for a concrete or brick building with water, sewerage, electricity and heating.
- Zone coefficient. It depends on the rank of the locality and the zone in which the building is located, according to the table in Article 457. In zone A in Bucharest (rank 0) the coefficient is 2.60, and in a rural commune of rank IV it is 1.10.
From 2026 the reductions based on the age of the building were also abolished, as appears from the calculation table published by the Buzău municipality. The zone coefficient is set by a decision of the local council, so the coefficient for a specific address is checked in the building tax assessment notice.
The taxable value is unrelated to the sale price. A villa bought for more than 2.5 million lei may be below the threshold, and a large estate in an expensive neighbourhood may be above it even if its price is lower.
From what size does a building pay the luxury tax?
The formula can be reversed to ask from what built area, in a building with all utilities, the taxable value exceeds 2.5 million lei:
| Location | Zone coefficient | Built area from which the tax applies |
|---|---|---|
| Bucharest, zone A (rank 0) | 2.60 | About 359 sq m |
| Rural commune, zone A (rank IV) | 1.10 | About 849 sq m |
The practical meaning: in the rural suburbs of Ilfov county a very large house is needed to reach the threshold. In the expensive neighbourhoods of Bucharest, a large villa can already exceed it. A typical family villa of 150 to 200 sq m of built area is far from it in most cases.
Calculation examples: who passes the threshold and who does not
The examples are for illustration only, for a building with all utilities, using 2026 values:
| Property | Calculation | Taxable value | Liable to the luxury tax? |
|---|---|---|---|
| Villa of 180 sq m built area, commune of rank IV, zone A | 180 × 2,677 × 1.10 | 530,046 lei | No |
| The same villa in Bucharest, zone A | 180 × 2,677 × 2.60 | 1,252,836 lei | No |
| House of 250 sq m built area in Bucharest, zone A | 250 × 2,677 × 2.60 | 1,740,050 lei | No |
| Estate of 450 sq m built area in Bucharest, zone A | 450 × 2,677 × 2.60 | 3,132,090 lei | Yes |
Only the last row gives rise to liability: 3,132,090 minus 2,500,000 is 632,090 lei, and 0.9% of that is about 5,689 lei a year. At a rate of about 5.35 lei to the euro, the ECB reference rate on 7 October 2026, that is about 1,060 euro a year, in addition to the local building tax.
Who files Form 216, and by when?
- Who: every owner. In co-ownership, each according to their share.
- Where: Form 216 is filed with ANAF through SPV, the tax authority's private virtual space, or with the authority's assistance software.
- When: declaration and payment by 30 September, according to the ownership position on 31 December of the previous year.
- What is needed: a Romanian tax identification number.
This is a tax payable to the national tax authority, not to the municipality. The municipality sends you the building tax notice, but will not remind you about Form 216. Anyone who is liable and does not file will not receive a reminder from the local authority.
How does the luxury tax fit into the annual costs of a property in Romania?
For most property owners it is an empty line in the budget. The lines that apply to every house are the local building tax and land tax and the ongoing maintenance costs, which we set out in the guide to annual property tax in Romania. Even so, it is advisable to ask the local authority for the taxable value of the building in writing already in the first year, so as to know with certainty whether you are close to the threshold.
Before buying a large house: what to check
Anyone considering a large house in Bucharest or a property with an exceptional built area should calculate the taxable value before signing and include the luxury tax in the annual budget. We go through the built area data in the land book extract and the permit with buyers, and refer them to a local accountant or tax adviser for the declaration and payment to ANAF.
This article is general information, current as of October 2026, and is not legal or tax advice. Zone coefficients and the taxable value are determined by the local authority, and the examples are simplified. Before filing, it is advisable to check with a local tax adviser.
Frequently asked questions
What is the rate of the luxury tax on properties in Romania in 2026?
0.9% of the portion of the taxable value of the residential building that exceeds 2,500,000 lei. Until 2025 the rate was 0.3%, and Law 239/2025 tripled it.
Is the luxury tax calculated according to the purchase price?
No. It is calculated according to the taxable value that the local authority determines under Article 457 of the Tax Code: built area, multiplied by 2,677 lei per sq m, multiplied by a zone coefficient. A villa bought for more than 2.5 million lei may be below the threshold.
Does a non-resident pay the luxury tax in Romania?
Yes, if they own a residential building in Romania whose taxable value exceeds the threshold. The tax applies to ownership, not to residence.
By when is Form 216 filed?
By 30 September, together with payment, according to the ownership position on 31 December of the previous year. It is filed with ANAF and not with the municipality.
I have two properties. Are the values added together?
No. The threshold is tested for each building separately, and two buildings each of which is below 2.5 million lei are not liable to the luxury tax.
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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.