Romania To Enforce Solidarity Tax On Owners Of Multiple Homes

The solidarity tax will be enforced through an emergency ordinance, which will amend the current Tax Code.

The document obtained by MEDIAFAX stipulates that individuals who own two or more houses, which they are not renting out to any third parties, will have to pay 50% of the yearly tax on their second home to the local budget. Owners of three homes will have to pay 100% of the tax on the third building, while those who own four residences will pay 200% of the tax on the fourth home.

The tax will be payable by September 30.

The Government argues that the tax is justified by the current economic and financial context, which requires the increase of local budgets.

The initial version of the amendment to the Fiscal Code specified a 30% solidarity tax quota for the second home, 100% for the third one and 200% for owners of four or more houses. The specialized departments of local public administration institutions would calculate the sums owed by multiple home owners for the latter half of the current year. The tax was supposed to be enforced as of June 1, and yield RON45.9 million, or 0.1% of Romania's GDP, according to Government estimates.

The currently enforced Fiscal Code says individuals who own two homes pay 15% more on the yearly house tax, those who own three pay 50% more, owners of four homes pay 75% more, while owners of five or more homes pay 100%.

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