In brief
An individual selling an apartment, house or land in Romania pays tax of 3% of the transaction value if they held the property for up to three years, and 1% if they held it longer, under article 111 of the Fiscal Code. The tax is calculated on the whole value and not on the profit, the notary collects it on the day of signing, and since 2023 there has been no exemption threshold. An Israeli resident additionally reports the profit in Israel, and receives a credit for the tax paid in Romania under the tax treaty.
Key takeaways
- 1The tax rate is 3% of the value for a property held for up to three years, and 1% for a property held for more than three years.
- 2The tax is calculated on the value and not on the profit, so it is paid even on a sale at a loss.
- 3The exemption threshold of 450,000 lei was abolished, and since 2023 the tax applies to the full value, including between relatives.
- 4The basis is the declared price, but not less than the minimum value in the chamber of notaries' study.
- 5In Israel the general rate is 25% on the real gain, with a credit for the Romanian tax under the tax treaty.
It is worth thinking about the tax on sale as early as the day of purchase. The holding period, the manner of registration and the date that will count as the "date of acquisition" are determined at the start, and they will determine how much you pay on the day you sell.
Israelis are usually surprised by one point: in Romania the tax on an individual's sale of property is not a tax on the profit, but a small percentage of the whole value. In this guide we explain the rule, the basis, the special cases, and the Israeli layer.
How much tax does an individual pay on selling property in Romania?
3% of the transaction value if they held the property for up to three years, and 1% if they held it for more than three years. The rule is set in article 111 of the Romanian Fiscal Code (Law 227/2015), as of 2026, and it applies equally to apartments, houses and land.
| Holding period | Tax rate | Sale at 200,000 euros |
|---|---|---|
| Up to three years | 3% of the transaction value | 6,000 euros |
| More than three years | 1% of the transaction value | 2,000 euros |
The difference between the brackets is threefold, so the date of acquisition is a fact worth documenting and keeping. And another change that many have not noticed: until the end of 2022 there was an exemption threshold of 450,000 lei. It was abolished, and since 2023 the tax has applied to the full value from the first leu. A sale between relatives is not exempt either.
The tax is calculated on the value and not on the profit, so it is paid even on a sale at a loss.
How are the three years counted?
From the date of acquisition to the date of sale. Under the notaries' rules there are several special cases:
- A property received by inheritance: the count starts on the date of death of the deceased, not on the date the certificate of inheritance is issued.
- An unfinished building: the count starts on the date the land was acquired.
- Co-ownership acquired on different dates: each share is examined separately, so a combination of 1% and 3% in the same transaction is possible.
When buying from a developer, the property usually passes into your name under the final contract, after construction is completed, and not under the preliminary contract. Check with the lawyer which date will count as the date of acquisition in your transaction, because the three years are counted from it.
On what amount is the tax calculated?
On the value the parties declared in the contract, but not less than a floor. If the declared value is lower than the minimum value in the market study of the chamber of notaries (grila notarială), the tax is calculated according to the study.
There are no deductions that reduce the basis. The following amounts do not reduce the tax:
- An outstanding mortgage balance on the property.
- An agent's commission you paid.
- Renovation costs.
- The price you paid on purchase.
Furniture and electrical appliances can be excluded from the basis, if they are priced separately and presented as movable property.
Who collects the tax, and what does a foreign seller need?
The notary. The tax is not paid through an annual return: the notary calculates it, collects it on the day of signing the final contract and transfers it to the state by the 25th of the following month, under the rules of the Romanian tax authority (ANAF). Non-residents are taxed on a property in Romania exactly like Romanian residents.
A seller living in Israel has two practical requirements:
- A tax identification number (NIF): a person without a Romanian identification number obtains one from the tax authority.
- Attendance or a power of attorney: a notarial signing in Romania is not done remotely, but an attorney-in-fact can sign on your behalf before the notary.
Are there additional taxes in Romania on the sale?
On an ordinary sale of a private property, no. There are no social security or health contributions (CAS and CASS) and no separate profit tax: the tax the notary collects is the only liability in Romania. Two exceptions are worth knowing:
- Agricultural land outside the built-up area (extravilan) sold within eight years of acquisition may bear an additional special tax.
- A person who buys and sells properties as an occupation may be treated as carrying on a business activity, with different tax rules. This is a question for a tax adviser.
What is reported in Israel on the sale of a property in Romania?
The profit. An Israeli resident is taxed in Israel on their worldwide income, including the profit from selling a property in Romania. According to the Israel Tax Authority, the general rate is 25% on the real gain, that is, the difference between the sale price and the purchase price after indexation. On high incomes a surtax may also apply. A credit is given for the tax paid in Romania, under the tax treaty between Israel and Romania signed in 1997.
| Subject | Romania | Israel |
|---|---|---|
| Tax basis | The whole transaction value | The real gain only |
| Rate | 3% or 1% | 25% |
| Who collects | The notary, on the day of signing | Your report to the tax authority |
| Credit | Not relevant | For the tax paid in Romania |
The logic of the two systems is reversed: in Romania a low rate on the whole value, in Israel a high rate on the profit only. The final liability depends on your figures, so it is worth calculating it with a tax adviser before deciding on the timing of the sale.
Before selling: how we prepare the sale
We check the relevant date of acquisition and the manner of registration, calculate the Romanian tax in advance according to the price and the grid, and make sure there is a NIF and that the power of attorney is ready if you are not attending. We coordinate the Israeli calculation with your tax adviser. The signing, the collection of the tax and the registration are carried out by a public notary in Romania, accompanied by a lawyer licensed locally.
The information is current for 2026 and is not legal, tax or financial advice. Tax rates in Romania and in Israel may change. Before a sale or purchase it is advisable to consult a tax adviser familiar with the law of both countries.
Frequently asked questions
Is there capital gains tax on selling a property in Romania?
Not in the Israeli sense. An individual pays tax on the whole transaction value: 3% if they held the property for up to three years and 1% thereafter. There is no calculation of profit, so the tax is paid even on a sale at a loss.
Who pays the tax on sale in Romania, the buyer or the seller?
The seller. The notary calculates the tax, collects it on the day of signing the final contract and transfers it to the tax authority, so no separate annual return on the sale is needed in Romania.
Does the 450,000 lei exemption threshold still exist?
No. It was abolished from 2023, and the tax now applies to the full transaction value, including on a sale between relatives.
What happens when selling a property received by inheritance?
The holding period is counted from the date of death of the deceased. If more than three years have passed since then, the rate is 1%.
Will I also pay tax in Israel?
An Israeli resident reports the real gain and pays 25% on it, less a credit for the Romanian tax under the tax treaty. The final liability depends on your figures, and it is worth calculating it with a tax adviser.
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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.