Residential building tax is 0.08% to 0.2% of the taxable value, as decided by the local council.
Law 239/2025 raised the taxable value per m² of a residential building with utilities from 1,000 to 2,677 lei.
The tax is paid in two equal instalments, by 31 March and by 30 September.
Paying the full annual tax by 31 March can earn a discount of up to 10%, as decided by the local council.
A new owner declares the building to the local authority within 30 days. Tax is due from 1 January of the next year.
Annual property tax in Romania: the short answer
In Romania you pay the local authority an annual tax on a residential building (impozit pe clădiri) of 0.08% to 0.2% of its taxable value, at the rate set by the local council. From 2026, the taxable value per m² of a residential building with utilities rose from 1,000 to 2,677 lei, so the tax rose significantly in most places. You pay in two instalments, by 31 March and by 30 September, and paying the full year by 31 March can earn a discount of up to 10%.
Investors hear "there is no purchase tax in Romania" and conclude there is no annual tax either. There is. It is low compared with municipal taxes in many countries, but it exists, it went up in 2026, and people who do not know about it find out on the day they try to sell.
What the annual property tax is, and who pays it
It is a local tax. It is not paid to the national tax agency (ANAF) but to the tax department of the local authority where the property is: in Bucharest, the sector; outside the city, the town or commune.
Every owner pays, including non-residents. The tax follows ownership, not residence.
Alongside the building tax there is a land tax (impozit pe teren) on the plot. When you buy a villa, you pay both.
What changed in 2026
Law 239/2025, the "second fiscal package", changed how local taxes are calculated from 1 January 2026:
- The taxable value per m² went up. For a concrete or brick residential building with water, sewerage, electricity and heating: from 1,000 to 2,677 lei per m². Without those utilities: from 600 to 1,606 lei, according to the summary by the Bucharest Sector 5 local tax department.
- The rate stays in the 0.08%-0.2% range. The local council chooses within the range, and by law the 2026 rate cannot be lower than the 2025 rate.
- Land tax went up too. Values by land-use category were multiplied by two to three, according to Avocatnet.
The effect is real: according to Adevărul, in Bucharest's Sector 1 the tax on apartments nearly doubled in 2026.
How the annual property tax in Romania is calculated
For an individual's residential building, in simple terms:
- Built area in m². If the built area is not known, the usable area is multiplied by 1.4.
- Times the taxable value per m². 2,677 lei for a building with all utilities.
- Times the zone coefficient. It depends on the locality's rank and the zone within it. In Bucharest the coefficients range from 2.30 to 2.60.
- Less an age reduction. 15% for a building 50 to 100 years old, 25% for one over 100 years. A new building gets none.
- Times the local rate. Between 0.08% and 0.2%. Sector 5, for example, applies 0.1%.
An illustrative example
A new house with 150 m² of built area, in a zone with a 2.60 coefficient and a 0.1% rate:
| Step | Calculation | Result |
|---|---|---|
| Base value | 150 m² × 2,677 lei | 401,550 lei |
| Zone coefficient | × 2.60 | 1,044,030 lei |
| Annual tax | × 0.1% | about 1,044 lei |
| Paid in full by 31 March | discount of up to 10%, if approved locally | about 940 lei |
The example is simplified: it excludes land tax, and coefficients and rates vary between authorities. The exact amount appears on your local authority's tax notice.
The annual property tax in Romania is not a large expense, but in 2026 it is no longer negligible.
When to pay, and how to get the discount
- Two equal instalments: by 31 March and by 30 September.
- Early-payment discount: paying the full annual tax by 31 March earns a discount of up to 10%. The exact percentage is set by the local council.
- How to pay: at the local tax office, by bank transfer, and with many authorities through the national platform Ghișeul.ro.
A local bank account makes this easier. We cover that in our article on transferring money to Romania.
After the purchase: the 30 days to remember
Under Article 461 of the Fiscal Code (Law 227/2015), a new owner must file a declaration with the local tax department within 30 days of the acquisition. The tax is due from 1 January of the year after the purchase.
Filing late is an administrative offence that carries a fine. And in practice, an owner who is not registered receives no tax notice, builds up a debt without knowing it, and discovers it when they need proof of no local tax debts before a sale.
My advice: leave the notary with the list of documents for the declaration, and file it that same week. In our project in Balotești we guide buyers through this step too, because it is easy to forget when you live abroad.
Where the property tax fits in the bigger picture
The annual property tax is one line among several. Next to building and land tax there is insurance, maintenance and, if the property is let, tax on the rent. We put all the lines together in our article on the costs of owning property in Romania, and rental tax in detail in our guide to rental income tax in Romania.
Frequently asked questions
How much property tax do you pay in Romania on an apartment or villa?
0.08% to 0.2% of the building's taxable value, as decided by the local authority. The taxable value is based on the area, a value of 2,677 lei per m² for a building with utilities, a zone coefficient and an age reduction. Land tax on the plot comes on top.
Do non-residents pay property tax in Romania?
Yes. The tax applies to every owner, wherever they live. The duty to file a declaration within 30 days of the purchase applies to them too.
When is the property tax paid?
In two equal instalments, by 31 March and by 30 September. Paying the full amount by 31 March can earn a discount of up to 10%, as decided by the local council.
Why did my property tax go up in 2026?
Because Law 239/2025 raised the taxable value per m² of a residential building with utilities from 1,000 to 2,677 lei and also raised land values. The rate itself could not drop below the 2025 rate.
What happens if I do not declare the property after buying?
It is an administrative offence that carries a fine, and the tax debt keeps growing. Before a sale you will need to show there are no local tax debts, and that is where the debt will surface.
The bottom line
The annual property tax in Romania is not a large expense, but in 2026 it is no longer negligible, and it takes a little order: a declaration within 30 days, payment by 31 March, and keeping the receipts.
If you want to know what the tax will be on a specific property, with us or anywhere else, book a 30-minute call with me. We will check the authority, the coefficient and the rate together, and put the number into your annual budget. For the full picture of taxes for buyers from Israel, see our tax guide for Israeli buyers.
Moti Azulay, Compass Group Romania
Sources and data: Romanian legislation portal (Fiscal Code, Law 227/2015, Articles 457 and 461; Law 239/2025) · Local Taxes Department, Bucharest Sector 5 · Avocatnet · Adevărul · Ghișeul.ro.
This article is for general information only and is not legal, tax or financial advice. Rates, coefficients and the discount are set by each local authority and may change from year to year. Before deciding, check with the local authority or a local tax adviser.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
