Pvt Individuals In Romania To Pay 16% Tax For Commercial Real Estate Transactions

Real estate transactions which seek no commercial interest will keep the same taxation as until now, according to the final form of the governing agenda of the country’s new government coalition.

The document does not make references to the enforcement date of the new taxes.

Private individuals pay since 2007 differentiated taxes for revenues obtained from real estate transactions.
If properties – buildings or lands – are sold in less than three years since their acquisition, the fee level is of 3% if the value of the property does not exceed 200,000 lei (EUR1=RON3.9497).

Above this level, the fix amount of RON6,000 is added along with a tax of 2%, which is calculated for the sum exceeding RON200,000.

The tax mechanism remains the same for the selling of buildings after more than three years since their acquisition. However, the fix sum to be paid for the assets exceeding RON200,000 is worth RON4,000.

In a document sent in January 2008 to the Notaries Union in Romania by the Finance Ministry said obtaining revenues by selling buildings that are private property is not considered economic activity, therefore these transactions are not subject to VAT payment.