In brief
The asking price of a property in Romania is not always the total price. In an ordinary transaction the buyer bears the notary's fee, the land book registration fee and, for a new property, also VAT at 21%, and thereafter annual costs: building and land tax, mandatory PAD insurance, maintenance and owners' association or estate fees. To compare correctly, compare total price with total price and annual cost with annual cost, and ask for the breakdown in writing.
Key takeaways
- 1Romania has no purchase tax as in Israel, but the buyer usually pays the notary, a registration fee and, for a new property, VAT.
- 2VAT at 21% has applied to a new home from a developer since 1 August 2025, under Law 141/2025.
- 3Building tax for an individual is 0.08% to 0.2% of the taxable value under Article 457 of the Tax Code, and land tax is added to it.
- 4PAD insurance is mandatory: 130 lei a year for a concrete or brick home, with cover of up to 100,000 lei.
- 5Ask for a signed “included and not included” annex, with an amount or “included” next to every line, including connections and meters.
Israeli buyers are used to comparing properties by price and by price per square metre. In Romania, such a comparison can be misleading: one seller presents a price that includes VAT, the notary and registration, and another presents a “net” price to which all of these will be added. Even after signing there are running costs that do not appear in the advertisement. This guide breaks the calculation into two parts, one-off and annual, and explains what to ask in each.
Which one-off costs accompany a purchase in Romania?
Romania has no tax that the buyer pays on the purchase itself, like purchase tax in Israel. However, three costs are usually borne by the buyer, unless the price includes them:
- The notary's fee, according to a minimum tariff set by the Minister of Justice, with VAT on top.
- The land book registration fee, 0.15% of the value for an individual.
- VAT on a new home from a developer, 21% since 1 August 2025, under Law 141/2025.
Beyond these, there are costs that are usually not within any asking price: an independent lawyer acting for you, mortgage costs (valuation, bank fees and a notarial mortgage contract), furniture and light fittings, a power of attorney and translations if you are acting remotely.
| Item | What to establish | When it is paid |
|---|---|---|
| VAT, notary, registration fee | Whether they are included in the price and, if not, how much | At signing |
| A lawyer acting for you | A written scope of work | Once |
| Mortgage: valuation, fees, notarial contract | A written breakdown from the bank | Once, if you take financing |
| Furniture, light fittings | What is handed over with the property according to the specification | Once |
| Electricity, water, sewage and gas connections and meters | An express line in the contract annex | According to the contract |
| Building and land tax | Rate and zone coefficient from the town hall | Every year |
| PAD insurance and additional insurance | Policy and cover | Every year |
| Owners' association or estate fees | Rules and a written budget | According to the budget |
In the contract annex, next to every infrastructure connection and every meter there should be “included” or an amount. A blank line is usually a bill that will arrive after delivery.
VAT at 21% has applied to a new home from a developer since 1 August 2025, under Law 141/2025.
How much property tax is paid every year?
Building tax and land tax are paid to the local authority, also by non-residents. Under Article 457 of the Tax Code, the rate for an individual's residential building is 0.08% to 0.2% of the taxable value, according to the decision of the local council. From 2026, under Law 239/2025, the taxable value of a concrete or brick building with all utilities is 2,677 lei per sq m.
The calculation: built area, multiplied by 2,677, multiplied by the zone coefficient, multiplied by the rate. For illustration only, a house of 150 sq m built area, at a coefficient of 2.60 and a rate of 0.1%, comes to 1,044 lei a year, before land tax. To calculate your own figure, ask the seller for the built area according to the permit, and the town hall for the rate and the zone coefficient for that year.
Payment is made in two instalments, by 31 March and by 30 September, and under Article 462 whoever pays the whole year by 31 March may receive a discount of up to 10%, if the council has set one. How to pay from abroad is explained in our guide to paying local taxes on Ghișeul.ro.
For particularly expensive properties, a luxury tax has been added from 2026: 0.9% on the part of the taxable value above 2.5 million lei. The taxable value of your property appears in the tax assessment notice.
Which insurance is mandatory and what else is worth insuring?
PAD insurance (mandatory insurance against natural disasters) applies to every home: 130 lei a year for a concrete or brick home, with cover of up to 100,000 lei. This is a floor and not a solution, so it is worth considering additional optional insurance. Whoever takes a mortgage will be required by the bank to hold a policy in its favour.
Which maintenance and upkeep costs should you expect?
- Energy: depends on use and the size of the property.
- Gas inspections: where the home has a gas system, ANRE Order 179/2015 requires a technical inspection at least once every two years.
- Villa versus apartment: a villa also has land, and therefore also land tax, as well as a garden, a roof and systems to maintain.
- Gated estate: on an estate with a shared internal street there are common expenses, such as lighting, drainage, landscaping and snow clearance, instead of an owners' association.
What should you ask about estate fees before signing?
On new estates, the estate fees are sometimes set only once there is a budget. Do not settle for an oral estimate. Ask for three things:
- The first year's budget in writing, line by line, and the draft rules.
- Who manages the estate until all the units have been handed over.
- Who pays the share of units not yet sold. A good answer: the developer pays for the units it holds.
It is also worth obtaining an extract from ANCPI showing in whose name the internal street is registered, because this affects who is responsible for its maintenance.
How do you compare properties fairly?
- Check whether the displayed price includes VAT, the notary and registration.
- Ask for a signed “included and not included” annex, attached to the preliminary contract.
- Contact the town hall's tax department and ask about the rate and the zone coefficient.
- Ask for a quotation for optional insurance beyond PAD.
- If you are taking a mortgage, ask the bank in writing for all the fees and insurance requirements.
- Compare total price with total price, and then annual cost with annual cost.
On the Israeli side, there may be obligations to report to the Israel Tax Authority on a property abroad and on income from it; check this with your tax adviser.
What to do before signing and how we assist
The expensive surprise is usually not the tax, but the line that no one wrote. When we assist with a purchase, we go through the price with the buyer against the draft contract and the annexes, flag every cost that is not defined and ask the seller to complete it in writing before signing. The signing, registration and dealings with the local authority are carried out by a notary and by lawyers licensed in Romania.
What is stated here is general information correct as of October 2026 and does not constitute legal, tax or financial advice. Local tax rates, insurance tariffs and energy costs change; before deciding, check with the local authority and a tax adviser.
Frequently asked questions
Which taxes and fees are paid on the day of purchase in Romania?
There is no purchase tax as in Israel. The buyer usually pays the notary's fee and the land book registration fee and, for a new property from a developer, also VAT at 21%, unless the price includes them.
How much annual tax is paid on a house in Romania?
0.08% to 0.2% of the building's taxable value, according to the decision of the local authority, plus land tax. It is paid in two instalments, by 31 March and by 30 September, and there is sometimes a discount for early payment.
Is home insurance mandatory in Romania?
PAD insurance against natural disasters is mandatory for every home: 130 lei a year for a concrete or brick home, with cover of up to 100,000 lei. It is advisable to consider additional optional insurance.
How does the annual bill for a villa differ from that for an apartment?
A villa also has land, and therefore also land tax, as well as a garden, a roof and systems to maintain. On an estate with a private street, estate fees are paid instead of owners' association fees.
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- Romanian legislation portal - Tax Code (Law 227/2015, Articles 457, 462), Law 239/2025, Law 141/2025
- ANRE - National Energy Regulatory Authority, Order 179/2015
- PAID - mandatory insurance against natural disasters (PAD)
- ANCPI - National Agency for Cadastre and Land Registration
- National Union of Notaries Public of Romania (UNNPR)
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.