In brief
An individual who rents out property in Romania on a long-term basis pays tax of 10% after a flat deduction of 20%, that is approximately 8% of the gross rent; for tourist rentals of up to 7 rooms the deduction is 30% and the effective tax approximately 7%. The rates are the same for residents and non-residents. In addition to payment in Romania, an Israeli resident also reports the rent in Israel and chooses between the 15% route and the marginal tax route.
Key takeaways
- 1Long-term rental: tax of 10% after a flat deduction of 20%, approximately 8% of the gross rent (as of 2026).
- 2Tourist rental of up to 7 rooms: a deduction of 30% and an effective tax of approximately 7%; above 7 rooms, business activity rules apply.
- 3The lease is registered with ANAF on Form C168, through the online personal space, within 30 days of signing or of any change.
- 4The income is reported and the tax on it paid in the single declaration (Form 212) by 25 May of the following year, unless a tenant that is a company has withheld the tax at source.
- 5In Israel you choose between the 15% route without a credit for the Romanian tax and marginal tax with deduction of expenses and a credit under the treaty.
How much tax is paid in Romania on rent from an apartment or villa?
For an ordinary long-term rental, approximately 8% of the gross rent: a tax of 10% imposed on the rent after a flat deduction of 20%. The mechanism does not require expenses to be proven; the deduction is granted automatically.
The rates apply equally to Romanian residents and to non-residents. The differences for an Israeli resident lie in the health contributions, which depend on insurance status, and in the parallel reporting obligation in Israel.
| Type of rental | Flat deduction | Tax on the balance | Effective tax on the gross rent |
|---|---|---|---|
| Ordinary long-term rental | 20% | 10% | Approximately 8% |
| Tourist rental, up to 7 rooms | 30% | 10% | Approximately 7% |
| Tourist rental, more than 7 rooms | Treated as business activity | Other rules | - |
Until the end of 2022, the deduction for an ordinary rental was 40%, which is why figures such as "6% effective" still appear online. In 2023 there was no deduction at all, and from 2024 the deduction is 20%.
Tourist rental of up to 7 rooms: a deduction of 30% and an effective tax of approximately 7%; above 7 rooms, business activity rules apply.
What does the calculation look like on rent of EUR 1,000 per month?
- Annual rent: EUR 12,000.
- Flat deduction of 20%: EUR 2,400.
- Taxable income: EUR 9,600.
- Tax of 10%: EUR 960 per year.
Who remits the tax to the authority: you or the tenant?
It depends on the identity of the tenant.
- A tenant that is a company or an entity that keeps accounts withholds the tax at source, 10% after a deduction of 20%, and remits it to the tax authority by the 25th of the following month. This tax is final. It is advisable to ask the tenant for a certificate of the withholding.
- A private tenant withholds nothing, and you report and pay yourselves in the annual declaration.
Which deadlines should be marked in the calendar?
- Within 30 days of signing the lease - registration with ANAF. A private landlord registers the lease with the Romanian tax authority on Form C168, through the online personal space SPV (Spațiul Privat Virtual, the online interface of ANAF). The same deadline applies to any change to the lease, and termination of the lease is also reported.
- By 25 May of the following year - the single declaration. The income of each year is reported in the Declarația unică (Form 212), and the tax is paid by the same date.
- By the 25th of each month - when the tenant withholds at source. Responsibility here lies with the tenant.
To carry out all of these, a Romanian tax identification number (NIF) and access to the online personal space of ANAF are required.
When are health insurance contributions (CASS) added?
Above a certain threshold, health insurance contributions (CASS) at a rate of 10% are added to the rent. In 2026 they apply when the net income from the rent, alone or together with other income, exceeds 6 minimum wages, 24,300 lei per year, with a cap of 24 minimum wages, 97,200 lei.
Do they apply to a non-resident insured in another country? It depends on your insurance status, and there is also a social security agreement between Israel and Romania. This question should be checked with a tax adviser before the first declaration, not after it.
How is the rent reported in Israel?
An Israeli resident is taxed on worldwide income, so the rent from Romania is also reported in Israel. The Israel Tax Authority allows two routes:
- The 15% route (section 122A of the Income Tax Ordinance) - tax of 15% on the rent, with a deduction for depreciation only, without a credit for the tax paid in Romania.
- The marginal tax route - deduction of expenses, tax at the progressive rates and a credit for the Romanian tax under the tax treaty between the two countries.
The choice depends on personal data, so it is made with a tax adviser. It is also advisable to check the obligation to pay national insurance contributions in Israel on rent from abroad, which depends on employment status.
Which mistakes should be avoided?
- Skipping reporting because "the amount is small". In Romania the obligation applies from the first leu, and the lease is registered with ANAF.
- Relying on old guides. The deduction and the health contributions have changed in recent years.
- Forgetting the annual property tax. It is paid separately to the local authority, even when the property is rented out.
What to do before renting out and how we assist
Before renting out, it is advisable to obtain a NIF, open access to the ANAF personal space, prepare a suitable lease and decide with the tax adviser on the route in Israel. We assist in drafting the lease, preparing the list of deadlines and coordinating between the Romanian tax adviser and the accountant in Israel. The registration and filings with ANAF are carried out by qualified professionals in Romania, such as a lawyer or an accountant holding a local licence.
What is stated here is general information as of October 2026 and is not tax advice for a specific case. Tax laws in Romania and Israel change, and the actual liability depends on your personal data.
Frequently asked questions
How much tax is paid on rent in Romania?
For a long-term rental, 10% after a flat deduction of 20%, that is approximately 8% of the gross rent. For tourist rentals of up to 7 rooms the deduction is 30%, and the effective tax approximately 7%.
Does a non-resident pay a different tax on rent in Romania?
No. Non-residents pay the same rates as residents on income from real estate in Romania. The difference lies in the health contributions, which depend on insurance status, and in reporting in the country of residence.
Must the lease be registered with the Romanian tax authority?
Yes. A private landlord registers the lease with ANAF on Form C168, through the online personal space, within 30 days of signing or of any change to the lease.
When is the tax reported and paid in Romania?
The income of each year is reported in the single declaration by 25 May of the following year, and paid by the same date. If the tenant is a company, it withholds the tax at source and remits it by the 25th of the following month.
Is tax on the rent also paid in Israel?
An Israeli resident reports the rent and chooses between the 15% route, without a credit for the Romanian tax, and the marginal tax route with a credit under the tax treaty. The choice is made according to personal data.
Read next · 7 min readA Will for an Israeli With Property in Romania: Choice of Law, Form of the Will and Coordination With the Will in IsraelHow to write a will that works for property in Romania: Regulation 650/2012 and choice of law, notarial or handwritten wills, reserved shares, the Israeli will.Read the guideSources
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.