Property Guide – Romania
January 2024
This is a general guide only and not designed to cover every scenario and the nuances of property VAT. Specific advice according to each transaction or supply should always be sought from a VAT specialist.
| Supply | Commercial/non-residential | Residential | Charitable |
|---|---|---|---|
| Freehold Sale (sale of legal title) | S/R if new building (the year it was built and the following year) EX if old. R/C applicable between VAT registered entities. S/R for Land for construction. EX for agricultural land, meadows and forests. When EX applicable, Option is always available. | R/R for cheap houses and social dedicated facilities. Similar to commercial in other scenarios. | No particularities except R/R for social homes |
| Leases | EX with Option to tax available. | EX with Option to tax available. | EX with Option to tax available. |
| Transfer/sale of property including tenants and where leases continued by buyer. | Outside the scope of VAT. Buyer to formally declare the business continues as is. | Outside the scope of VAT. Buyer to formally declare the business continues as it | n/a |
| Rent | Same as lease | Holiday use accommodation and similar subject to R/R only if owner is authorized for hotel like accommodation | n/a |
| Construction services | S/R, no particularities | S/R, no particularities | Zero rated if dedicated to hospitals |
| Conversion services | S/R, no particularities | S/R, no particularities | Zero rated if dedicated to hospitals |
| Refurbishment services | S/R, no particularities | S/R, no particularities | Zero rated if dedicated to hospitals |
| Materials only for building | S/R, no particularities | S/R, no particularities | Zero rated if dedicated hospitals |
| Overseas suppliers of property related services e.g. architect, surveyor | Not taxable in Romania if B2B. S/R if B2C. | Not taxable in Romania if B2B. S/R if B2C. | Not taxable in Romania if B2B. S/R if B2C. |
Taxable with right to recover related VAT on expenditure
Standard rate (“S/R”) = 19%
Reduced rate (“R/R”) = 9%
Exemption, with no right to recover VAT on expenditure
Exempt (“EX”) = 0%
