From 2026 you pay 0.9% of the portion of the taxable value above 2,500,000 lei. Until 2025 the rate was 0.3%.
The taxable value is built area times 2,677 lei per sq m times a zone coefficient. It is a formula, not a market price.
In zone A in Bucharest, with a 2.60 coefficient, a building crosses the threshold only from about 359 sq m built. In a rural commune: about 849 sq m.
Form 216 is filed with ANAF by 30 September, based on ownership on 31 December of the previous year.
A 450 sq m mansion in Bucharest, zone A: a taxable value of 3,132,090 lei and luxury tax of about 5,689 lei.
Luxury property tax in Romania: the short answer
Romania has a special tax on "high-value" residential buildings, known as the "luxury tax". From 2026 it stands at 0.9% of the portion of a building's taxable value above 2,500,000 lei, up from 0.3%. The threshold is measured against the taxable value the local authority calculates, not against the market price. You pay ANAF, on Form 216, by 30 September. A typical villa of 150 to 200 sq m of built area is very far from the threshold.
When investors read in the Romanian press about a "tripled luxury tax", they assume a €300,000 villa is caught. It is an understandable mistake, because 2.5 million lei is worth about €467,000, and the numbers look close. But the tax does not look at the price you paid. It looks at a formula.
What the luxury tax is, and where it came from
The tax is defined in Article 500² of the Tax Code, Law 227/2015. It applies to individuals who own, on 31 December of the previous year, a residential building in Romania with a taxable value above 2,500,000 lei.
Law 239/2025, the "second fiscal package", raised the rate from 0.3% to 0.9%, that is, threefold. Following this, ANAF updated Form 216, on which the tax is declared and paid.
Three important details, according to the Contabilul guide and DC Business:
- It is a separate tax. It is added to the local building tax, and does not replace it.
- It is measured per building. Two properties of 1.5 million lei each are not combined against the threshold.
- It also applies to non-residents. What counts is ownership of a building in Romania.
The point everyone misses: taxable value, not price
The value tested against the threshold is "the taxable value of the building, as communicated by the local authority". It is calculated under Article 457 of the Tax Code, using the same formula as the annual building tax:
- Built area in sq m. For an apartment, where there is no such figure, the usable area is multiplied by 1.4.
- Times 2,677 lei per sq m. This is the 2026 value for a concrete or brick building with water, sewerage, electricity and heating.
- Times the zone coefficient. It depends on the rank of the locality and the zone the building is in, under the Article 457 table: in zone A in Bucharest (rank 0) the coefficient is 2.60, and in a rural commune of rank IV it is 1.10.
From 2026 the reductions based on the building's age were also abolished, as set out in the calculation table of Buzău city hall.
Romania's luxury tax is measured on the taxable value the authority calculates, not on the price you paid for the house. Europa Liberă stresses the same point: the taxable value is unrelated to the sale price.
Three examples: who crosses the threshold and who does not
The examples are for illustration, for a building with all utilities, in 2026:
| Property | Calculation | Taxable value | Above the threshold? |
|---|---|---|---|
| Villa, 180 sq m built, rank IV commune, zone A | 180 × 2,677 × 1.10 | 530,046 lei | No |
| The same villa, Bucharest, zone A | 180 × 2,677 × 2.60 | 1,252,836 lei | No |
| Mansion, 450 sq m built, Bucharest, zone A | 450 × 2,677 × 2.60 | 3,132,090 lei | Yes |
Only the last line pays luxury tax: 3,132,090 minus 2,500,000 is 632,090 lei, and 0.9% of that is about 5,689 lei a year, about €1,060 at roughly 5.35 lei per euro (the ECB reference rate, 7.10.2026). This is on top of the local building tax.
Romania's luxury tax is measured on the taxable value the authority calculates, not on the price you paid for the house.
How many square metres it takes to cross the threshold
You can reverse the calculation and ask: from what built area does a building with all utilities cross 2.5 million lei?
| Location | Coefficient | Built area above which tax applies |
|---|---|---|
| Bucharest, zone A (rank 0) | 2.60 | about 359 sq m |
| Rural commune, zone A (rank IV) | 1.10 | about 849 sq m |
In other words, in the rural suburbs of Ilfov you need a truly huge house to reach the threshold. Within Bucharest, in the upmarket neighbourhoods, a large villa can cross it. The zone coefficient is set by a decision of the local council, so check the coefficient for your address on the tax assessment notice.
How and when you pay
- Who declares: every owner. In joint ownership, each according to their share.
- Where: Form 216, filed with ANAF, through the private virtual space (SPV) or the authority's assistance software.
- When: declaration and payment by 30 September, based on the position on 31 December of the previous year.
- What you need: a Romanian tax identification number. On how to get one, see the article on the NIF in Romania.
It is important to remember: this is a tax to the national authority, not to the city hall. The local authority sends you the building tax notice, but will not remind you about Form 216.
Where it fits in the overall picture
The luxury tax is one line, and for most buyers it is an empty line. The lines that do apply to every villa are the local building and land taxes, which we set out in the article on the annual property tax, and the upkeep costs, which we gathered in the article on the cost of owning a villa. And you will find all the 2026 changes in one place on the page on 2026 tax changes.
I will mention it once: our villas in Balotești are very far from the threshold, but with us too I recommend asking the authority for the taxable value in writing in the very first year.
Frequently asked questions
What is the luxury tax rate on property in Romania in 2026?
0.9% of the portion of the residential building's taxable value above 2,500,000 lei. Until 2025 the rate was 0.3%, and Law 239/2025 tripled it.
Is the luxury tax calculated on the purchase price?
No. It is calculated on the taxable value the local authority sets under Article 457 of the Tax Code: built area, 2,677 lei per sq m and a zone coefficient. A villa bought for much more than 2.5 million lei can be below the threshold.
Does a non-resident pay luxury tax in Romania?
Yes, if they own a residential building in Romania whose taxable value exceeds the threshold. The tax applies to ownership, not to residence.
By when do you file Form 216?
By 30 September, together with the payment, based on ownership on 31 December of the previous year. It is filed with ANAF, not with the city hall.
I have two properties. Are the values added together?
No. The threshold is tested for each building separately. Two buildings each below 2.5 million lei are not liable for the luxury tax.
The bottom line
Romania's luxury tax has tripled, and that sounds frightening. In practice it hits mainly large mansions inside Bucharest. A family villa in the suburbs is far from it, because the formula counts metres and a zone coefficient, not the price.
If you want to check the taxable value of a particular property, ours or anywhere else, book a 30-minute call with me. We will do the calculation together, and put all the annual taxes into one budget.
Moti Azulay, Compass Group Romania
Sources and data: Romanian legislation portal (Tax Code, Law 227/2015, Articles 457 and 500²; Law 239/2025) · DC Business, the 2026 luxury tax threshold · Contabilul, guide to Form 216 · Digi24, ANAF updates Form 216 · Buzău city hall, the 2026 building tax formula · Europa Liberă, the 2026 home tax formula · Romanian tax authority (ANAF) · money.ro, BNR rate in October 2026.
This article is for general information only and is not legal, tax or financial advice. Zone coefficients and the taxable value are set by the local authority, and the examples are simplified. Correct as of October 2026; before filing, check with 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.
