Buyers of homes in Romania with a price of maximum €140,000 will pay a VAT of 5%, extending a facility that was applicable up to now only for residential units with costs up to €90,000, according to a government decision.
Until now, buyers of homes priced above €90,000 had to pay the regular VAT rate of 19%. The reduction of the lower VAT for more expensive residential units should have been implemented initially starting 2021, but was postoponed. The former government claimed this it needed more tax revenue to plug the budget deficits caused by the lockdowns.
Finance Minister Adrian Câciu said the lower VAT rate would be applied for a single home purchase made by an individual. For the second acquisition, the regular VAT would have to be paid.
