An individual pays 3% of the sale price if the property was held up to three years, and 1% after three years. Even at a loss.
Until the end of 2022, sales up to 450,000 lei were exempt. Since 2023 the tax applies to the full value, even between relatives.
The notary calculates the tax, collects it at the final contract signing and pays it to the state by the 25th of the next month.
From acquisition to sale. For inherited property, from the date of death. For unfinished construction, from buying the land.
Israeli residents, for example, report the real gain and pay 25% on it, with a credit for the Romanian tax under the treaty.
Tax on selling property in Romania: the short answer
In Romania, an individual who sells an apartment, house or land pays a tax of 3% of the sale price if the property was held for up to three years, and 1% if it was held for more than three years. The tax is charged on the full price, not on the profit, the notary collects it on signing day, and since 2023 there is no exemption threshold. Your country of residence may also tax the gain; Israeli residents, for example, report it in Israel and receive a credit for the Romanian tax.
The question that comes up in the first meeting
Many investors ask me about the sale tax before they have even chosen a property. It is a smart question: if you know in advance what selling day will look like, you plan the whole deal differently.
And the Romanian answer surprises most foreign buyers, because the sale tax is charged on the price, not on the gain. Even someone who sells at a loss pays it.
How much tax you pay when selling property in Romania
The rule is set in Article 111 of the Romanian Fiscal Code, Law 227/2015, and it applies in 2026:
| Holding period | Tax rate | Sale at €200,000 |
|---|---|---|
| Up to three years | 3% of the sale price | €6,000 |
| More than three years | 1% of the sale price | €2,000 |
The rule applies equally to apartments, houses and land. The difference between the two bands is threefold, so the date you acquired the property is worth recording and keeping.
One more point many people miss: until the end of 2022 there was an exemption threshold of 450,000 lei. It was abolished, and since 2023 the tax applies to the full value, from the first leu. Sales between relatives are not exempt either.
What value the tax is calculated on
The base is the price the parties declare in the contract. But there is a floor: if the declared price is below the minimum value in the notary chamber's market study (the "notaries' valuation guide", which we covered in our article on the foreigner premium), the tax is calculated on that floor.
What does not reduce the base:
- A mortgage balance still on the property.
- The agent's commission you paid.
- Renovation costs.
- The price you originally paid.
Furniture and appliances can be excluded from the base if they are priced separately and shown as movable goods.
Who collects the tax, and when
You do not pay this tax through an annual return. The notary calculates it, collects it on the day the final contract is signed, and transfers it to the state by the 25th of the following month, under the rules of the Romanian tax authority (ANAF).
For a foreign seller that means two practical things:
- You need a tax identification number (NIF). If you do not have a Romanian one, the tax authority issues it. See our guide to the Romanian tax ID.
- You need to attend the signing, or send a representative. Notarial signing in Romania cannot be done remotely, but a power of attorney is possible.
Non-residents are taxed exactly like Romanian residents on property located in Romania.
The important decision is not made on selling day, but on buying day.
How the three years are counted
The holding period runs from the acquisition date to the sale date. A few special cases, according to the notaries' rules:
- Inherited property: the clock starts on the date of the deceased's death, not when the certificate of inheritance is issued.
- Unfinished construction: the clock starts on the date the land was acquired.
- Co-ownership acquired on different dates: each share is assessed separately, so one sale can mix 1% and 3%.
And if you buy off-plan: the property usually passes into your name with the final contract, after construction is complete, not with the preliminary contract. Check with your lawyer which date will count as the "acquisition date" in your deal.
What else you do not pay, and what you might
On an ordinary sale of a personal property, there are no social or health contributions (CAS and CASS) and no separate profit tax. The sale tax collected by the notary is the only Romanian liability.
Two exceptions worth knowing:
- Agricultural land outside the built-up area (extravilan) sold within eight years of purchase may carry an additional special tax.
- People who buy and sell property as a business may be treated as carrying on an economic activity, with different tax rules. That is a question for a tax adviser.
The tax at home: the example of Israeli residents
Many countries tax their residents on worldwide income, including a gain on Romanian property. Israel is one example: the general rate is 25% on the real gain, meaning the difference between sale and purchase price after indexation, according to the Israel Tax Authority. High earners may also owe the surtax.
Israeli residents receive a credit for the tax paid in Romania, under the Israel–Romania tax treaty signed in 1997. In practice:
| Romania | Israel | |
|---|---|---|
| Tax base | The full sale price | The real gain only |
| Rate | 3% or 1% | 25% |
| Collected by | The notary, on signing day | Your own report to the tax authority |
| Credit | For the tax paid in Romania |
Romania charges a low rate on the whole price; Israel charges a high rate, but only on the gain. For more on the treaty, see our guide to the Israel–Romania tax treaty. If you live elsewhere, check your own country's treaty with Romania.
Frequently asked questions
Is there capital gains tax when you sell property in Romania?
Not in the usual sense. An individual pays tax on the whole sale price: 3% if the property was held for up to three years, and 1% after three years. No gain is calculated, so the tax is due even on a sale at a loss.
Who pays the tax, the buyer or the seller?
The seller. The notary calculates the tax, collects it on the day the final contract is signed and transfers it to the tax authority, so no separate annual Romanian return is needed for the sale itself.
Does the 450,000 lei exemption still exist?
No. The exemption was abolished from 2023, and the tax now applies to the full sale price, including sales between relatives.
What if I sell a property I inherited?
The holding period runs from the date of the deceased's death. If more than three years have passed since then, the rate is 1%.
Will I also pay tax in my home country?
Possibly. Israeli residents, for example, report the real gain and pay 25% on it, minus a credit for the Romanian tax under the tax treaty. Your final liability depends on your own situation, so calculate it with a tax adviser before you sell.
Can I sell without travelling to Romania?
Yes, through a notarial power of attorney. The signing itself cannot be done remotely, but a representative can sign on your behalf before the notary.
The bottom line
The tax on selling property in Romania is simple to calculate and low in rate, but it applies to the full price. Someone who holds for more than three years pays a third of what an early seller pays.
The important decision is not made on selling day, but on buying day: knowing your likely holding period, how the property is registered, and what you will report at home. If you are looking at a property now, at Compass on the Lake in Balotești or anywhere else, book a 30-minute call with me and we will go through every line together. And for the full picture of the costs in between, read our article on the costs of holding property in Romania.
Moti Azulay, Compass Group Romania
Sources and data: Romanian legislation portal (Law 227/2015, Fiscal Code, Article 111) · Romanian tax authority (ANAF) · National Union of Notaries of Romania (UNNPR) · PwC Tax Summaries, Romania · Israel Tax Authority.
This article is for general information only and is not legal, tax or financial advice. The figures apply to 2026 and may change. Before selling or buying, 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.
