As decided by the local council. From 2026, under Law 239/2025, taxable values rose and the age-based reduction was removed.
Pay by 31 March and by 30 September. Paying the whole year by 31 March earns a discount of up to 10%.
For a type A home: 130 lei a year, cover up to 100,000 lei, against earthquake, flood and landslide only.
With gas and a boiler: check the installation and the boiler at least every two years, and a full revision at least every 10 years.
Under Law 10/1995, hidden defects appearing within 10 years of acceptance are the designer's and contractor's liability. Structure: for the building's life.
Villa upkeep costs in Romania: the short answer
The upkeep costs of a villa in Romania come down to five lines: local tax on the building and the land, mandatory PAD insurance, optional extra insurance, energy and utilities, and maintenance of the house and garden. There is no single figure that fits every villa, because the tax is set by the local authority and energy depends on use. What you can do is build a budget line by line, using the 2026 rules.
The question that comes after the keys
In conversations with investors, after the price and the mortgage, the same question always arrives: "And what does it cost me every year, even when I am not there?"
It is a good question, because the upkeep costs of a villa in Romania are not the same as for an apartment. There is land, a roof, a garden and systems. Those who plan for them in advance are not surprised in February.
Local tax: what changed in 2026
In Romania you pay the local authority a tax on the building (impozit pe clădiri) and a tax on the land (impozit pe teren).
- The rate: for a residential building owned by an individual, between 0.08% and 0.2% of the taxable value, as decided by the local council.
- What changed: Law 239/2025, in force since 1 January 2026, raised the taxable value per m² and removed the reduction based on the building's age. Under the law, authorities could not set a lower rate for 2026 than in 2025. For many owners the bill rose accordingly.
- When you pay: in two equal instalments, by 31 March and by 30 September. Paying the whole year by 31 March earns a discount of up to 10%, as decided by the authority. You can pay online through Ghișeul.ro.
The rule: only the local authority can give you the exact amount for a specific villa. Full details are in our guide to annual property tax in Romania.
Insurance: mandatory PAD, and what lies beyond it
Every home in Romania must carry PAD insurance against earthquake, flood and landslide. Under Law 260/2008, as amended by Law 115/2023, the premium for a home built of concrete or brick (type A) is 130 lei a year, and the maximum cover is 100,000 lei.
Note the gap: PAD cover is limited, and it does not cover fire, water damage from pipes, burglary or third-party liability. That is why most owners add optional insurance (asigurare facultativă). If you have a mortgage, the bank will require a policy in which it is the beneficiary.
Energy and utilities
Electricity
Since 1 July 2025 the price cap on household electricity has ended, and you pay the price in your contract with the supplier. Compare suppliers and check the contract terms. Official market information is published by the energy regulator (ANRE).
Gas
The household gas price cap ended on 31 March 2026 and was replaced by a mechanism under Emergency Ordinance 12/2026, valid until 31 March 2027: the supplier bills the lower of the contract price and the price under the regulated formula.
Water, sewage and waste
Water and sewage are paid by consumption to the local operator. Waste collection fees are set at local level.
Small, regular maintenance costs less than one big repair.
Our villas in Balotești have underfloor heating, full air conditioning and REHAU windows. What you actually pay for energy depends mainly on how you use the house. We wrote about energy-efficient homes in a separate guide.
Periodic checks you must remember
If the house has a gas installation and a boiler, the law requires:
- A technical check of the gas installation at least every two years, by a company authorised by ANRE.
- A check of the boiler at least every two years, under ISCIR rules.
- A full revision of the gas installation at least every 10 years.
Beyond the legal minimum, service the air conditioning according to the manufacturer's instructions, and keep every receipt and certificate. You will need them with the insurer and on the day you sell.
A seasonal maintenance plan for a villa
| Season | What to check |
|---|---|
| Spring | gutters and drainage slopes, garden and irrigation, cleaning the air conditioning before summer |
| Summer | shading, window and door seals, outdoor furniture |
| Autumn | gutters after the leaves fall, heating system check, tax instalment by 30 September |
| Winter | snow on the roof and at the entrance, protecting outdoor taps from frost, tax payment by 31 March |
The rule: small, regular maintenance costs less than one big repair.
And if something turns out to be defective?
In a new home, not every repair is your expense. Under Law 10/1995 on quality in construction, the designer, the contractor and the other parties involved are liable for hidden defects that appear within 10 years of acceptance, and for structural defects for the entire life of the building. So document every fault and contact the developer in writing.
When you do not live in the villa
If you live abroad, you need someone to open the door for a technician, check the house after a storm and pay the bills on time. On who manages the property and what happens at night when something breaks, see our article on property management. For the full picture of ownership costs and taxes, see our guide to holding costs.
Frequently asked questions
How much local tax do you pay on a villa in Romania?
For a residential building owned by an individual, between 0.08% and 0.2% of the taxable value, as decided by the local council, plus a tax on the land. From 2026, taxable values rose under Law 239/2025. The local authority gives the exact amount.
Is PAD insurance mandatory?
Yes. Every home in Romania must carry PAD insurance against earthquake, flood and landslide. For a type A home the premium is 130 lei a year, with cover up to 100,000 lei.
Is PAD enough?
Usually not. It covers only three natural risks and a limited amount. Fire, water damage, burglary and third-party liability require additional optional insurance.
When is the local tax paid?
In two instalments, by 31 March and by 30 September. Paying the whole year by 31 March earns a discount of up to 10%, as decided by the local authority.
Which periodic checks are mandatory?
If the house has gas and a boiler: a check of the gas installation and of the boiler at least every two years, and a full revision of the gas installation at least every 10 years, by authorised companies.
Who pays for a defect in a new home?
Under Law 10/1995, the designer, the contractor and the other parties involved are liable for hidden defects that appear within 10 years of acceptance, and for structural defects for the entire life of the building. Document every fault and contact the developer in writing.
The bottom line
There is no magic number for villa upkeep costs in Romania. There is a list: tax, insurance, energy, checks and maintenance. Those who know the list build a real budget.
If you would like to go through this list for a specific villa, with us in Balotești or anywhere else, book a 30-minute call with me. We will build the annual budget together, line by line.
Moti Azulay, Compass Group Romania
Sources and data: Romanian legislation portal (Law 239/2025; Law 10/1995 on quality in construction) · Natural Disaster Insurance Pool (PAID) (Law 260/2008, as amended by Law 115/2023) · Energy regulator (ANRE) (Emergency Ordinance 12/2026) · ISCIR · Ghișeul.ro.
This article is for general information only and is not legal, tax or financial advice. Local tax rates, energy prices and insurance terms change, and the data is correct for 2026. Before deciding, check with the local authority and qualified professionals.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
