Starting at the beginning of next year, the VAT rate on newly built flats or individual family homes on the Romanian market will be slashed from 20 percent to 5 percent. Sales, however, must meet certain requirements to be eligible for the lower VAT rate.
The new law stipulates that the sale’s price can not exceed RON 450,000 (approximately €101,300), up from RON 380,000 (approximately €85,500). The flat or house must cover less than 120 sqm of space and be built on less than 250 sqm of land. Homes that do not meet these requirements will be subjected to a 20-percent VAT rate. The reduced VAT rate can only be applied on a single purchase.
