Tax in Romania
See what Romania's tax rules do to your property portfolio.
What Freeholt models for property, income and retirement in Romania, and what it does not.
Free to start. No card. Rules reviewed 1 July 2026.
Modelled here
- Tax on rental income
- Capital gains on a sale
- Duty on purchase (approximate)
- Inheritance and what happens on death
RON · Rates as at 1 July 2026 · Rates editable in Settings · Estimates, not advice
Rental income is taxed at the flat 10% after a 20% deemed expense deduction (effectively 8% of gross) for residents and non residents alike. No CGT on the gain. The notary collects 3% of the sale price within 3 years of purchase, 1% after.
How rental income is taxed in Romania
For a resident owner: A flat 10% on gross rent. A statutory deduction of 20% comes off the gross first, so the effective rate on rent is about 8%. For an owner living abroad and renting this out: A flat 10% on gross rent. A statutory deduction of 20% comes off the gross first, so the effective rate on rent is about 8%.
Interest and losses
A rental loss brings no relief: it cannot reduce other income, and it does not carry forward.
Capital gains on a sale
There is no capital gains tax on residential property. A seller side levy still applies on the way out, up to 3% of the sale price, and it falls hardest on a quick resale.
Annual property tax while holding
An annual property or land tax is not modelled here, which is not the same as there being none. Treat holding costs on this page as excluding it.
What it costs to buy
Freeholt estimates this at 0.15% of the price. That is an average rather than the published rule, which is not modelled here yet. No buyer side transfer tax. Notary, land registry and legal fees run ~1 to 2%. EU/EEA citizens buy land freely; non EU buyers face reciprocity conditions (apartments are generally open).
Inheritance and what happens on death in Romania
No inheritance, estate or gift tax. But something else stands in its place. That is a researched finding rather than a gap in the model, and it is not the end of the story: Freeholt holds four rules that stand where a transfer tax would be in another country, broadly what a beneficiary's cost base becomes and when a charge falls due, and this page does not attempt to summarise them. These rules were verified 5 August 2026. Freeholt models the country's rules rather than any particular will, so what an estate pays still depends on who inherits and what is in it.
How Freeholt models Romania
Every rate above is priced from Freeholt's own table for Romania and runs through the whole projection: rental income, a modelled sale and the annual holding costs all use the same figures. They are also defaults that can be edited in Settings, so a position that differs, or a rate that changes before we catch it, can be corrected and the projection reprices around it.
What running this property costs
In Romania this covers the local building tax, mandatory PAD dwelling insurance, block maintenance/administration fees and management.
How borrowing works here
Terms up to ~25 to 30 years for residents; non resident lending is scarce, so foreign buyers commonly pay cash.
What actually happened here
This country's own record, one year at a time. Nothing on this page is borrowed from another country. Move across a chart to read a year.
What Freeholt models here
- ModelledTax on rental income
- Resident and non resident rates, with interest and losses treated under the local rule.
- ModelledCapital gains on a sale
- No general capital gains tax, but a charge on the seller at the sale, which is priced.
- ApproximateDuty on purchase
- Carried as one national average rather than the published scale, which differs by band and often by region.
- Not yetAnnual property or land tax
- Not priced here; the page says where the charge falls instead.
- Not yetIncome tax beyond the rent
- Not modelled for this country yet.
- Not yetDividends, interest and share sales
- Not modelled for this country yet.
- Not yetRetirement savings
- Not modelled for this country yet.
- ModelledInheritance and what happens on death
- Who pays, and on what, when property passes on.
What Freeholt does not model here
- Any annual property or land tax, which may still exist here
- Treaty relief between this country and the owner's country of residence
Coverage deepens country by country. Every figure is an estimate, not advice.
Compare with another country
Each page is built from the same table the app runs on, so the figures line up side by side.
Compare Romania with another country — rent, gains, annual tax and duty, side by side.
Questions people ask
- Does Freeholt model Romania property tax?
- Yes. Rental income tax, capital gains on a sale and duty on purchase are priced from Freeholt's own rate table for Romania. Duty on purchase carries a simplification that the page names beside the figure. Annual property or land tax is not priced here, and the page says so rather than showing a zero. Any rate or threshold can be corrected in Settings so the whole projection reprices. Every figure is an estimate, not advice.
- How is rental income from Romania taxed if I live somewhere else?
- A flat 10% on gross rent. A statutory deduction of 20% comes off the gross first, so the effective rate on rent is about 8%. Tax may also be due in the country of residence, with credit for what was paid here. Estimates only, not advice.
- What are the Romania figures as at?
- The rate table for Romania was last reviewed on 1 July 2026. Freeholt date stamps every country rather than implying all of them were checked on the same day. Estimates only, not advice.
Model a property in Romania alongside everything else you own: see the year your portfolio starts paying you back.