VAT Taxes and fees. Fiscal news of 2023 in real estate

VAT Taxes and fees. Fiscal news of 2023 in real estate

Surely the Romanian economy would be much more stable and prosperous without the numerous fiscal changes that appear year after year, without all the laws changed by the party that is in charge of the country. The lack of balance from this point of view equally impacts both the private and the public sector.

We have all gotten used to the numerous changes from a fiscal point of view, and they were brought to the fore at the beginning of 2023. In today's material, we talk about the most important changes that will also impact the real estate market.

The non-taxable ceiling of 450,000 RON has disappeared
Until the end of 2022, any natural person trading a property cheaper than 450,000 RON was exempt from income tax. A tax of 3% was charged only for amounts that exceeded the ceiling of 450,000 RON.

New year, new taxes
Starting with January of this year, the Romanian state charges a different tax for real estate transactions made by natural persons. For buildings owned for a period of up to 3 years inclusive, the tax is 3% for constructions of any kind and their related lands, as well as on lands of any kind without constructions.

For the properties mentioned above, owned for a period of more than 3 years, the owners will take out of their pocket 1% of the transaction amount to pay the tax on the real estate transaction.

5% VAT for the purchase of a single house
Until the end of 2022, any property with a price of less than 450,000 RON had 5% VAT included, with no limit for the number of properties purchased. For buildings more expensive than 450,000 RON, a 5% VAT is still applied, but only one property could be purchased by the same person.

The beginning of the year comes with changes in this sense as well. Real estate with a price of up to 600,000 RON can be purchased by natural persons also with 5% VAT, but only for the purchase of a single home by the same person.

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