Taxes in Romania

Taxes in Romania.

Income tax…

• The fiscal year begins on January 1st and ends December 31st of the same year.
• A flat rate of tax at 16% has been replaced with progressive tax rates.
• A monthly general deduction is granted for each Romanian citizen living in Romania. Additional supplementary deductions are granted for other family members and dependents of the tax payer.

Stamp duty.

Stamp duty ranges between 0.5% - 3% of the value of the property you wish to purchase.

Income rental tax.

This is currently around 16%.

Building tax.

This is currently between 0.2% - 1% of the property value.

Capital gains tax.

This is normally around 16% of the value of the property but can be lowered to 10% if the property is owned for at least 2 years. The buyer as owner of the property is subject to property tax this can vary between 0.5% - 1% of the book value of the property. Even though Romania entered the EU in 2007, it will take some time for changes (if any) to happen in this area. Once this has occurred this information will be up dated accordingly