In an attempt to save money, the Romanian government has postponed the reduction of VAT from 19% to 5% for homes worth up to 140,000 euros, and this makes those who have planned their home purchase and appealed to a credit no longer fit into the budget. The government hopes to save 200 million lei in this way.
“The real estate market had developed in the last part of 2020 with the premise of implementing in January 2021 the increase of the 5% VAT to 140,000 euro. It is true that it seemed too good: the measure was taken in time, taxpayers had time to analyze, to prepare, change plans, buyers could look at slightly larger apartments or houses,” says George Trantea, Filip & Company advisor.
