Romania To Triple Property Tax For Owners Of More Than Three Properties

The draft states that owners of two or more homes besides their residence, which are not rented out to third parties, will pay an additional 30% for one extra property, 100% for two extra properties and 200% for three extra properties.

The current property taxation system has owners of one extra home besides their residence pay an additional 15% tax, which rises to 50% for two extra homes, 75% for three extra homes and 100% for a fourth property and beyond.

Under the new decree, the Government doubles property taxes for owner’s first and second property and triples the tax for owners of more than three homes.

The Government, which is struggling to cut spending and boost budget revenue to meet the terms of an EUR20 billion IMF-led rescue loan, expects to cash in 45.9 million lei (EUR1=RON4.1838), or 0.01% of GDP, this year from raising property taxes. The tax hike is seen boosting budget revenue by RON95 million in 2011, RON100.7 million in 2012 and RON109.5 million in 2013, accounting for 0.02% of the GDP.