The sale of houses and plots will be exempt from taxes if their value is up to RON 450,000 (EUR 100,000).

For more expensive properties, only the difference above EUR 100,000 will be taxed with a 3% rate, according to an ordinance the new Government approved on Friday, reports local Profit.ro.

The tax rate on property sales currently varies depending on how long the seller has owned the house or the plot. If the asset has been owned for less than three years and its sales value is below RON 200,000 (EUR 44,400), the tax rate amounts to 3%. If the value exceeds RON 200,000 (EUR 44,400), the tax rates amounts to RON 6,000 (EUR 1,300) plus 2% of the sum above RON 200,000.

If the property has been owned for more than three years, the tax rate totals 2% for the assets worth less than RON 200,000. For those above RON 200,000, the tax rate amounts to RON 4,000 (EUR 887) plus 1% of the amount exceeding RON 200,000.

The new Government also plans to eliminate the VAT on house sales.

editor@romania-insider.com