- The Romanian government has decided to increase the VAT rate from 9% to 21% for new housing deliveries starting August 1, 2025, impacting the real estate sector. This change aims to boost state budget revenues but may have negative economic and social consequences for both the population and real estate developers. Currently, new homes up to 120 sqm and valued at a maximum of 600,000 lei benefit from a reduced VAT rate of 9%. The new measure eliminates this benefit, except for certain facilities like retirement homes and centers for disabled minors. The VAT increase significantly affects the price of homes under the government-supported “Noua Casă” program, as the financing cap remains unchanged. A transitional period allows for a reduced VAT rate of 9% under specific conditions, such as contracts signed with a minimum 20% advance by July 31, 2025. Buyers and developers can negotiate pre-contracts to maintain the reduced VAT rate, but must carefully consider legislative limitations.
Source: blog.pwc.ro
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
