Reply To: Buying a property in Romania

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#19375

David

The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.

Stamp Duty
Property transfer is subject to stamp duty based on the following schedule:
Stamp Duty
PROPERTY VALUE, RON (€) RATE
Up to 15,000 (€3,333) 2.2%, minimum of RON150 (€33)
15,000 – 30,000 (€6,666) 1.6% on band over €3,333
30,000 – 60,000 (€13,333) 1.3% on band over €6,666
60,000 – 300,000 (€66,667) 0.9% on band over €13,333
300,000 – 600,000 (€133,333) 0.65% on band over €66,667
Over 600,000 (€133,333) 0.44% on all value over €133,333

Notary fee:
Notary fees are paid by the buyer subject to the minimal fees established by the National Union of the Notaries. In practice, notary fees range from 0.44% to 2.20% of the transaction value.

Registration fees:
Registration fees are around 0.50% to 2% of the property value.

Real estate agent´s fee:
Real estate agent´s fee is around 6% of purchase price, split between buyer and seller.

Transfer Tax
Individuals who sell Romanian property are liable to pay transfer tax, levied on the sales proceeds. The applicable tax rate depends on how long the property was held by the owner and the property value.
Transfer Tax for Property Owned for Less Than 3 Years
PROPERTY VALUE, RON (€) RATE
Up to 200,000 (€44,444) 3%
Over 200,000 (€44,444) 2%

Transfer Tax for Property Owned for at least 3 Years
PROPERTY VALUE, RON (€) RATE
Up to 200,000 (€44,444) 2%
Over 200,000 (€44,444) 1%

VAT:
The 24% Value Added Tax (VAT) is charged on full price if the seller is a VAT payer (i.e. a company). However, transfer from a VAT payer to another VAT payer, and transfer of a business by way of a share sale are also not subject to VAT.