The 9% track closed on 30 September 2026. Since then, every new home a developer sells to an individual carries 21% VAT.
The value on which local building tax is calculated rose from 1,492 to 2,677 lei per sq m, and the age reduction for older buildings was abolished.
On a residential building with a taxable value above 2.5 million lei: 0.9% of the portion above the threshold, instead of 0.3%.
Every dividend distributed from 1 January 2026 is taxed at 16%, instead of 10%, including from profits of earlier years.
An individual selling pays 3% of the transaction value up to three years and 1% after. Rental income tax did not change either.
Romania's tax changes in 2026: the short answer
In 2026, four main things changed in Romania for property owners: 21% VAT on every new home from a developer, after the 9% track closed on 30 September 2026; a local building tax based on a value of 2,677 lei per sq m, with no age reduction; a 0.9% luxury tax on buildings with a taxable value above 2.5 million lei; and a 16% dividend tax. Rental income tax, the tax on sale and the absence of a purchase tax stayed as they were.
The past year was packed with fiscal legislation in Romania, so guides from a year ago are no longer accurate. I have gathered here everything that affects anyone buying, owning, letting or selling a property, with a link to each detailed article.
The two laws behind the changes
Most of the changes come from two "fiscal packages" the government passed in 2025 to reduce the deficit:
- Law 141/2025, the first package: the VAT increase from 1 August 2025, and the dividend tax from 1 January 2026.
- Law 239/2025, the second package: local taxes on buildings and land and the luxury tax, from 1 January 2026.
They were joined in 2026 by Law 161/2026, which extended the 9% VAT transitional track until 30 September 2026.
The table: what it was, and what it is now
| Subject | Before the change | As of October 2026 |
|---|---|---|
| VAT on a new home sold to an individual | 9% up to 120 sq m and 600,000 lei, otherwise 19% | 21% on every new home |
| Building tax value per sq m (with utilities) | 1,492 lei (2025) | 2,677 lei |
| Reduction for an older building | 10% to 50%, by age | Abolished |
| Local building tax rate | 0.08%–0.2% | 0.08%–0.2%, and not lower than in 2025 |
| Luxury tax on a residential building | 0.3% above 2.5 million lei | 0.9% above 2.5 million lei |
| Dividend tax | 10% | 16% |
| Turnover ceiling for a micro company | €250,000 (2025) | €100,000 |
| Rental income tax, individual | 10% after a 20% deduction | No change |
| Tax on sale, individual | 3% up to 3 years, 1% after | No change |
| Purchase tax | None | None |
The important line: most of the 2026 changes hit the purchase of a new home and holding costs. The tax on exit stayed as it was.
On purchase: 21% VAT on every new home
Standard VAT rose from 19% to 21% on 1 August 2025, and the reduced 9% rate for housing was abolished. The transitional track, for those who signed a preliminary contract by 1 August 2025, ended on 30 September 2026. Since then, every new home a developer sells to an individual carries 21%.
The details, including when a property counts as "new", are in the article on VAT on new homes. The practical advice is just one point: compare total prices, not "+TVA" prices.
On holding: higher building tax, and no age reduction
According to Newsweek România, quoting tax adviser Gabriel Biriș, the value per sq m on which building tax is calculated rose from 1,492 lei in 2025 to 2,677 lei in 2026, an increase of about 79%. At the same time, the reductions for buildings aged 30 years or more were abolished, as shown in the calculation table of Buzău city hall.
The rate stayed in the range of 0.08% to 0.2%, as decided by the local authority, but the 2026 rate cannot be lower than the 2025 rate. Land tax values also rose. You will find the full calculation, with an example, in the article on the annual property tax.
The luxury tax: tripled, but not for everyone
The special tax on a residential building whose taxable value exceeds 2,500,000 lei rose from 0.3% to 0.9% of the portion above the threshold. It is paid to ANAF on Form 216 by 30 September, according to DC Business.
The threshold is measured on the taxable value, not the market price, so most family villas are far from it. We explained the calculation in the article on the luxury property tax.
Most of the 2026 changes hit the purchase of a new home and holding costs. The tax on exit stayed as it was.
On letting: no change, with a small update to health contributions
An individual letting a property pays 10% on the rent after an automatic 20% deduction. That has been the position since 2024, and 2026 did not change it.
What moved is the minimum wage, which sets the threshold for health contributions (CASS). According to PwC, the minimum wage was 4,050 lei a month from January to June 2026, and 4,325 lei from July. Health contributions of 10% apply above an annual income of 24,300 lei, with a ceiling of 97,200 lei. Full details in the guide to rental income tax.
In a company: 16% dividends and a lower micro ceiling
Anyone holding property through a Romanian company (SRL) feels 2026 in two places. The dividend tax rose from 10% to 16% on every dividend distributed from 1 January 2026, including from profits of earlier years. And the turnover ceiling for the micro regime fell to €100,000, according to StartupCafe.
For anyone holding a single property, this calculation reinforces what we have been saying for a while: in most cases you start as individuals.
On sale: what was is what is
An individual selling a property pays 3% of the transaction value if they held it for up to three years, and 1% after that. The 450,000 lei exemption threshold was abolished back in 2024, and 2026 did not bring it back. Details in the article on tax when selling a property.
And the Israeli side
The changes in Romania do not change the tax rules in Israel. An Israeli resident continues to report income from the property and the gain on sale, with a credit for the Romanian tax under the tax treaty. What does change is the size of the credit, because the Romanian tax itself has moved. The two-country picture is worth building with a tax adviser who knows both countries.
And if you have a variable mortgage in lei, note one figure that is not a tax: the IRCC index rose to 5.57% from 1 October 2026, according to Economedia.
Frequently asked questions
What is the biggest change in Romanian property taxes in 2026?
For buyers, VAT: 21% on every new home from a developer, after the 9% track ended on 30 September 2026. For owners, the local building tax, calculated from 2026 on 2,677 lei per sq m and with no age reduction.
Did rental income tax in Romania change in 2026?
No. An individual pays 10% after a 20% deduction, as since 2024. The health contributions threshold is based on the minimum wage, and stands in 2026 at 24,300 lei a year.
Did the tax on selling a property in Romania go up?
No. The rate remains 3% of the transaction value for up to three years of ownership, and 1% after that. The 450,000 lei exemption threshold was abolished back in 2024.
How much dividend tax do you pay in Romania in 2026?
16%, on every dividend distributed from 1 January 2026, even if the profit was earned earlier. Until the end of 2025 the rate was 10%.
Is there a purchase tax in Romania in 2026?
No. Even after all the changes, Romania has no purchase tax of the kind Israel has. On signing day you pay the notary and registration, and on a new home from a developer, VAT as well.
The bottom line
2026 made Romania more expensive to enter and to hold: full VAT on a new home, and a higher building tax. It did not touch rental income tax or the tax on exit, and there is still no purchase tax.
If you want to see this table applied to a specific property, ours in Balotești or anywhere else, book a 30-minute call with me. We will go through every line, and you will come away with an organised list for the conversation with your tax adviser.
Moti Azulay, Compass Group Romania
Sources and data: Romanian legislation portal (Tax Code, Law 227/2015; Law 239/2025) · PwC Romania, Law 141/2025 · PwC Tax Summaries, Romania · Taxhouse, the August 2026 tax amendments · Newsweek România, Gabriel Biriș on the 2026 taxes · Buzău city hall, the 2026 building tax formula · DC Business, the luxury tax · StartupCafe, taxes in force in 2026 · Economedia, IRCC from October 2026.
This article is for general information only and is not legal, tax or financial advice. Romanian tax law changed several times in 2025–2026 and may change again. The table is correct as of October 2026, and before any transaction it is advisable to check the current position with a tax adviser.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
