In brief
Anyone buying a new apartment or villa from a developer in Romania today pays VAT at 21%, regardless of area or price. The reduced 9% rate for housing was abolished in August 2025, and the transitional track for contracts signed before then ended on 30 September 2026. The sale of a building that is not "new" under the Fiscal Code is generally exempt from VAT, so it is important to know both the status of the property and whether the price offered includes VAT.
Key takeaways
- 1From 1 October 2026 every new home a developer sells to an individual bears 21% VAT.
- 2Law 141/2025 raised the standard rate from 19% to 21% and abolished the 9% rate for housing, with effect from 1 August 2025.
- 3Law 161/2026 extended the 9% transitional track until 30 September 2026. A proposal to extend it until 2027 did not become law.
- 4A building is considered new until 31 December of the year following first occupation (Fiscal Code, Article 292).
- 5For a villa of EUR 250,000 before VAT, the difference between 21% and 9% is EUR 30,000.
Israeli buyers comparing price offers in Romania come up again and again against a seemingly simple question: does the price include VAT? Over the past year the answer to this question has been worth tens of thousands of euros, because the VAT map for housing in Romania has changed twice within a short time.
This guide summarises what applies today, what has closed, and what should be written in the contract so that you are not taken by surprise.
How much VAT is paid today on a new home in Romania?
21%. From 1 October 2026 this is the rate on every new home a developer sells to an individual, regardless of area or price. VAT applies to the transaction and not to the identity of the buyer, so a non-resident, including an Israeli buyer, pays the same rate as a Romanian buyer.
Law 141/2025 raised the standard rate from 19% to 21% and abolished the 9% rate for housing, with effect from 1 August 2025.
What changed in 2025 and 2026?
Law 141/2025 changed the VAT rates with effect from 1 August 2025:
- The standard rate rose from 19% to 21%.
- The reduced 9% rate for housing was abolished. Until then, individuals could buy a home of up to 120 sq m of usable area, worth up to 600,000 lei before VAT, at 9%.
- A transitional track was set for those already in the process of buying, and it was extended once.
The reduced 11% rate that remains in the law applies to defined categories of social housing and institutions, and not to a private buyer of an apartment or villa.
Is it still possible to buy a home at 9% VAT?
No. The transitional track allowed an individual to buy one home at 9%, originally until 31 July 2026, only if all of the following conditions were met together:
| Condition | The requirement |
|---|---|
| Area and price | Up to 120 sq m of usable area, and a value of up to 600,000 lei before VAT, including the land |
| Earlier contract | A contract with an advance payment signed by 1 August 2025. A contract signed between 3 and 31 July 2025 also required payment of at least 20% by 31 July 2025 |
| Once only | The buyer had not bought another home at reduced VAT since 1 January 2023 |
| Condition of the home | Fit for habitation on the day of handover |
Law 161/2026, published on 4 August 2026, extended the deadline for signing the notarial deed until 30 September 2026. A proposal to extend it until 2027 did not become law. Even while the track was open, it was intended only for those who had signed a contract with an advance payment by August 2025. A new buyer could not enter it.
When is a property considered "new" for VAT purposes?
Under Article 292 of the Romanian Fiscal Code, a building is considered new until 31 December of the year following its first occupation or use. "New" is not a marketing description but a tax status with an expiry date.
| Type of transaction | VAT |
|---|---|
| A new apartment or villa from a developer, from 1 October 2026 | 21% |
| A new home on the transitional track, deed signed by 30 September 2026 | 9% |
| A building that is not new (after 31 December of the year following first occupation) | Generally exempt, unless the seller opted to charge VAT |
| An individual selling their private home | VAT generally does not apply |
How much is involved in practice?
An illustrative example: a new villa priced at EUR 250,000 before VAT. At 21% the VAT is EUR 52,500 and the total price EUR 302,500. At 9%, on the track that has closed, the VAT would have been EUR 22,500 and the total price EUR 272,500. The difference is EUR 30,000, so the most important thing is to know which figure is being discussed.
How do you check whether the price in the offer includes VAT?
In Romania it is customary to advertise prices of new homes "+TVA", that is, before VAT. Before the preliminary contract, ask four questions, and get the answers in writing in the contract itself:
- Does the price include VAT? The gap between the two figures is 21% of the price.
- At what rate, and who bears a change? The contract should state what happens if the VAT rate changes between signing and handover, and who bears the difference. A contract can set a fixed price and still leave the VAT risk on the buyer.
- What does VAT apply to? The home, the land, the parking space and the storage unit.
- What is not included in the price? The notary, registration and the lawyer are separate expenses.
When comparing projects, compare the price including VAT and the ancillary expenses, not the price "before VAT". A price that looks lower may turn out higher once 21% is added.
How does VAT fit in with off-plan payments and a mortgage?
In an off-plan purchase, VAT is usually paid together with each payment under the preliminary contract, and the developer issues an invoice for each payment. The payments go into the project's dedicated account under Law 207/2025, whose rules since 25 August 2026 are found in Article 422(6) to 422(11) of the Planning and Construction Code (Law 169/2026).
Anyone financing part of the purchase with a loan should remember that VAT is part of the price that has to be financed, from equity or from the loan. Financing planning therefore starts from the total price.
What to do before signing, and how we help
Before signing a preliminary contract, break the price offer down into lines: price before VAT, VAT, parking and storage, and ancillary expenses. Make sure the contract states explicitly who bears a change in the rate. We help Israeli buyers read price offers and the price clauses in the contract, and identify what is included and what is not. Acts under Romanian law are carried out by a notary and by lawyers licensed in Romania, and local tax questions are checked with a Romanian tax adviser.
The above is general information and is not legal or tax advice. VAT rates in Romania changed several times in 2025 and 2026 and may change again. Before signing, check the current position with a local lawyer or tax adviser.
Frequently asked questions
How much VAT is there on a new home in Romania?
21%. From 1 October 2026 this is the rate on every new home a developer sells to an individual, regardless of area or price.
Does a non-resident pay the same VAT as a Romanian buyer?
Yes. VAT applies to the transaction and not to the buyer. The conditions of the transitional track did not depend on residence either, but on the contract, the area, the price and the dates.
Is there VAT on a second-hand home in Romania?
Generally not. An individual selling their private home does not charge VAT, and the sale of a building that is not new is generally exempt. A building is considered new until 31 December of the year following first occupation.
Is it still possible to buy a home at 9% VAT in Romania?
No. The transitional track required a contract with an advance payment by 1 August 2025 and a notarial deed by 30 September 2026. A new buyer pays 21%.
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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.