10% after a fixed 20% deduction, about 8% of the gross rent. The rate is the same for residents and non-residents.
For tourist lets of up to 7 rooms the deduction is 30%, and the effective tax is about 7% of the rent.
A private landlord registers the lease with ANAF on form C168, through the online personal area, within 30 days.
Each year's income is reported in the single return (form 212) by 25 May of the next year, and paid by the same date.
Israeli residents choose between a 15% track, with no credit for Romanian tax, and the marginal-rate track with a treaty credit.
Rental income tax in Romania: the short answer
In Romania, an individual letting an apartment or villa long term pays 10% tax on the rent after a fixed 20% deduction, which is about 8% of the gross rent. For tourist lets of up to 7 rooms the deduction is 30%, so the effective tax is about 7%. The rates are the same for residents and non-residents, and if you are tax resident elsewhere, for example in Israel, you report the income there too.
A question I hear a lot: "If I let it, how much tax will I pay there, and how do I even file from abroad?" The answer is simpler than it seems, but it involves three dates worth knowing in advance.
The rates: long-term and short-term lets
The Romanian system does not ask you to prove expenses. Instead there is a fixed deduction, and tax on the rest. This is how PwC Tax Summaries sums up the rules:
| Type of let | Fixed deduction | Tax on the rest | Effective, on gross rent |
|---|---|---|---|
| Regular (long-term) let | 20% | 10% | about 8% |
| Tourist let, up to 7 rooms | 30% | 10% | about 7% |
| More than 7 rooms for tourists | Treated as a business, different rules |
Watch out for old guides. Until the end of 2023 the deduction for regular lets was 40%, which is why figures like "6% effective" still circulate online. Since 2024 the deduction is 20%.
An illustrative example
Rent of €1,000 a month, €12,000 a year, on a long-term let:
- Fixed 20% deduction: €2,400.
- Taxable income: €9,600.
- 10% tax: €960 a year.
Who pays: you or the tenant
There are two routes, and they depend on the tenant:
- The tenant is a company or an entity that keeps accounts. It withholds the tax at source, 10% after a 20% deduction, and pays it to the tax authority by the 25th of the following month. That tax is final.
- The tenant is a private individual. You file and pay yourself, in the annual return.
Three dates to put in your calendar
- 30 days from signing: registration with ANAF. A private landlord must register the lease with the Romanian tax agency (ANAF) on form C168, through the online personal area (SPV), within 30 days of signing or of any change. Ending the lease is reported too.
- 25 May of the following year: the annual return. A year's income is reported in the "single return" (Declarația unică, form 212) by 25 May of the following year, and the tax is paid by the same date.
- The 25th of each month, if the tenant withholds. Here the responsibility lies with the tenant, but ask them for proof of the withholding.
To do all this you need a Romanian tax identification number (NIF) and access to ANAF's online personal area.
Health contribution (CASS): when it applies
Above a certain threshold, a health insurance contribution (CASS) of 10% is added. According to PwC, in 2026 it applies when net rental income, alone or with other income, exceeds 6 minimum gross salaries, 24,300 lei a year, capped at 24 minimum salaries, 97,200 lei.
Rental income tax in Romania is simple. What takes attention is the routine.
Does it apply to a non-resident insured in another country? That depends on your insurance status. Israel and Romania, for example, also have a social security agreement, according to Israel's National Insurance Institute. Check this with a tax adviser before your first return, not after it.
The home-country layer: the Israeli example
Most countries tax their residents on worldwide income, so the Romanian rent is reported at home as well. For Israeli residents there are two tracks, according to the Israel Tax Authority:
- The 15% track (section 122A of the Income Tax Ordinance). 15% of the rent, with only depreciation deductible, and no credit for the tax paid in Romania.
- The marginal-rate track. Expenses are deducted, tax is paid at personal rates, and the Romanian tax is credited under the tax treaty between the two countries.
We cover the treaty itself in our article on the Israel-Romania tax treaty, and both layers together, with a worked example, in our article on the costs of owning property in Romania. Israeli residents should also check whether National Insurance contributions apply to foreign rental income, which depends on their employment status.
What not to do
- Do not skip filing because "it is a small amount". Filing in Romania is mandatory from the first leu, and the lease is registered with ANAF.
- Do not rely on figures from old guides. The deduction changed, and so did the health contribution.
- Do not forget the annual property tax. It is paid separately to the local authority, even when the property is let. More on that in our guide to annual property tax in Romania.
Buyers of a villa in our project in Balotești who are considering letting it get this list of dates from us on handover day. But the personal tax calculation is always done with a tax adviser.
Frequently asked questions
How much tax do you pay on rent in Romania?
An individual letting long term pays 10% after a fixed 20% deduction, about 8% of the gross rent. For tourist lets of up to 7 rooms the deduction is 30%, and the effective tax is about 7%.
Do non-residents pay a different rental tax in Romania?
No. According to PwC, non-residents pay the same rates as residents on income from Romanian property. The differences are in the health contribution, which depends on insurance status, and in reporting in the country of residence.
When do I file and pay the tax?
Each year's income is reported in the single return by 25 May of the following year, and paid by the same date. If the tenant is a company, it withholds the tax at source and pays it by the 25th of the following month.
Do I need to register the lease with the tax authority?
Yes. A private landlord registers the lease with ANAF on form C168, through the online personal area, within 30 days of signing or of any change to the lease.
Do Israeli residents also pay tax on the rent in Israel?
Yes. An Israeli resident reports the Romanian rent and chooses between the 15% track, with no credit for the Romanian tax, and the marginal-rate track, with a credit under the tax treaty. The choice depends on personal circumstances and is best made with a tax adviser.
The bottom line
Rental income tax in Romania is simple: 10% after a fixed deduction, with no arguments over expenses. What takes attention is the routine: registering the lease within 30 days, filing by 25 May, and reporting in parallel at home.
If you are thinking of letting a property in Romania, with us or anywhere else, book a 30-minute call with me. We will go through the dates, the documents and the questions to bring to your tax adviser. And if you wonder who will deal with tenants day to day, read our article on managing the property from abroad.
Moti Azulay, Compass Group Romania
Sources and data: PwC Tax Summaries, Romania · Romanian tax agency (ANAF) (form C168, single return 212) · Romanian legislation portal (Fiscal Code, Law 227/2015) · Israel Tax Authority (section 122A of the Income Tax Ordinance) · National Insurance Institute of Israel.
This article is for general information only and is not legal, tax or financial advice. Tax law in Romania and elsewhere changes, and your actual liability depends on your personal circumstances. Before letting, consult a tax adviser who knows the law of both countries.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
