The new regulations regarding the increase of taxes on housing and vehicles in Romania starting from 2026 mark a significant change in the way property and cars are assessed and taxed. They aim to increase local revenues and harmonize the tax system with the principles of efficiency and fairness, directly affecting both individuals and legal entities.
Higher house and car taxes from 2026
By increasing the taxable value and narrowing the exemption categories, the legislation creates additional tax obligations and potential risks for owners, and the correct interpretation of the new rules requires specialized legal and tax expertise, argue property lawyers.
The draft law on the establishment of measures for the recovery and efficiency of public resources and for the modification and completion of some normative acts (Project L213/2025), which aims at a substantial tax increase for housing and for polluting cars, was recently contested at the Constitutional Court of Romania. Although the law had been adopted by the Parliament and sent for promulgation on November 20, 2025, its entry into force is currently uncertain due to a notice of unconstitutionality filed by senators belonging to the Parliamentary Group of the Alliance for the Union of Romanians (AUR) on November 21, the Constitutional Court of Romania postponing the trial date to December 10, 2025. The normative act aims at significant changes to the Fiscal Code, with the aim of resettling the system of taxation in the area of local taxes and duties from 2026. This article analyzes these changes and the impact of these increases on the real estate market, how owners and companies are affected, as well as the importance of professional real estate advice to effectively manage the tax implications.
How housing and commercial premises are reassessed
The legislative changes proposed by Project L213/2025 bring important changes to the way taxes and fees are calculated, generating a significant tax increase for all owners. According to article 457 para. (1) of the Fiscal Code, as a general rule for residential buildings and annex buildings owned by natural persons, the tax on buildings is calculated by applying a rate between 0.08% and 0.2% on the taxable value of the building, the rate being established by a decision of the local council, and in the municipality of Bucharest the attribution belongs to the General Council of the Municipality of Bucharest. To this is added a new paragraph regarding the previously provided building tax rate, which stipulates that the value of the rate in 2026 cannot be lower than that in 2025.
This increases the taxable value of residential buildings owned by individuals. For example, according to the table in the law, if in the current law the taxable value was 1,000 lei/sq m, in the draft it increases to 2,677 lei/sq m for type A buildings with complete installations (reinforced concrete frames or burnt brick walls), and on average we observe a 2.7 times increase in the tax values from the draft law.
It also narrows the categories of buildings and land exempt from paying taxes and fees, which means that more owners, including those related to certain previously exempt economic activities, will become tax payers. Both some categories of land and buildings were removed from the list of exemptions from the payment of fees and taxes, such as degraded or polluted land, land unsuitable for agriculture or forestry, and for buildings, the exemptions for private sanitary buildings, buildings used as greenhouses, solar houses, silos and buildings managed by RA-APPS were removed.
Previously, the special tax was applied to individuals who owned residential buildings with a taxable value over 2,500,000 lei and to individuals or legal entities who owned cars with a purchase value over 375,000 lei, and the local fiscal body sent detailed notifications regarding the taxable value. In the new version, according to art. 5002 lit. a) and b), the tax is no longer calculated on the entire value of the asset, but by applying a rate of 0.9% only on the difference between the value of the asset and the respective ceiling, respectively 2,500,000 lei for buildings and 375,000 lei for cars.
Following the legislative changes, important provisions regarding the calculation of the tax on buildings were repealed. The reduction of the taxable value according to the age of the building, the adjustment of the correction coefficient for apartments in large blocks and the update of the year of completion of the building in the case of major renovations are no longer applicable. The paragraph that provided for the application of a 0.4% rate for non-residential buildings used in agriculture was removed, and the provisions detailing the calculation of the tax for residential buildings and mixed-use buildings owned by legal entities were repealed.
Who will pay more for cars and how the taxes are recalculated
From 2026, car tax will be considerably higher for most drivers. Small cars up to 1,600 cm³ will pay even double or more than now, and those up to 2,000 cm³ will see an increase of almost half. For larger cars, between 2,000 and 3,000 cm³, the tax increases moderately, by 10%–25%, and those above 3,000 cm³ will pay the same as before or slightly more, depending on the pollution norm, and commercial vehicles, minibuses and buses will have a higher tax, increasing by about 10%–30%.
Lawyers specialized in property rights point out that the law provides for the introduction of new rules regarding the calculation of tax on means of transport, especially motor vehicles with mechanical traction. The Ministries of Development, Public Works and Administration, Internal Affairs and Transport and Infrastructure are required to collaborate to achieve a data exchange regarding the vehicle pollution norm. The tax is calculated according to the cylinder capacity of the vehicle, by multiplying each group of 200 cm³ (or fraction thereof) by an amount specified in the table.
“The most important change, however, concerns hybrid means of transport: the tax reduction is no longer at least 50% as in the old form of article 470 para. (3), but becomes an optional discount of a maximum of 30%, granted only if the local council decides. In practice, this means that most hybrid owners will pay a higher tax than before. At the same time, by art. 470 para. (31), an annual tax for electric vehicles is introduced for the first time, fixed at 40 lei per year”, said lawyer Radu Pavel.
What you need to know when buying a property in Romania in 2026
The purchase of a property in Romania requires increased attention to fiscal risks. For example, a particularly important aspect is the management of currency risk when payment is made in euros. The conclusion of preliminary sales-purchase contracts may include clauses that “freeze” the exchange rate, protecting the buyer from possible significant fluctuations between the moment of signing the preliminary contract and that of the final contract. It is also recommended to register the pre-contract in the Land Registry, to protect the buyer in case the owner concludes several contracts for the same property, which could have led to significant financial losses. This practice ensures legal protection, giving priority to the buyer registered in the land register and clarifying the ownership right from the pre-contract stage.
In the case of properties in undivided ownership, buyers who wish to share the property must bear in mind that leaving undivided ownership involves compliance with strict legal conditions. For sharing to be feasible in nature, the land or building must be easy to share in nature and comply with town planning and building regulations. It is necessary to identify all the co-owners and obtain their consent, and in the absence of an amicable agreement, the division can only be carried out by the court, according to the provisions of the Civil Code regarding the division and division of common properties. This ensures that the property right is clearly delimited and can be used or capitalized without the risk of disputes between co-owners.
Another significant risk is administrative and urban irregularities. Checking building permits, compliance with local planning regulations and the cadastral situation is essential to avoid problems such as demolitions, lack of connection to utilities or restrictions on the use of the building. In addition, a thorough control of the land register, mortgages, servitudes and other charges on the property allows the identification of all associated legal and fiscal obligations, such as income tax, profit tax, or other obligations reported to ANAF.
How to check ownership documents
In the context of the new legislative changes, the verification of the property documents and the legal situation of the property is an essential step in any real estate transaction. This involves analyzing the property title, previous contracts and entries in the Land Register to confirm the identity of the owner and the existence of any encumbrances, such as mortgages, easements or pending litigation. It is imperative that all documents comply with the legislation in force, including the Civil Code and the Real Estate Cadastre and Advertising Law no. 7/1996, republished, with subsequent changes. The legality of building permits, urban documentation and the property's fiscal situation must also be checked, including any obligations to ANAF or outstanding debts, in order to avoid legal and financial risks.
Also, an essential stage is the analysis of the developer's contracts: pre-contracts, promises to sell or other agreements with third parties that may affect ownership. It is important to identify if the property is subject to litigation, heirs' claims, or if it is in indivision, in which case the consent of all co-owners is required for the sale. Compliance with the legal provisions regarding contractual clauses, penalties and suspensive conditions is also verified, to ensure the safety of the transaction.
The land register extract and the cadastral plan provide critical information regarding the area, boundaries and location of the building, helping to identify any overlaps or lack of access. In addition, checking the property's legal history, including previous litigation or pending lawsuits, prevents future problems and confirms that the developer is the actual owner of the property and the property can be sold without restrictions.
“The new regulations regarding tax increases and fiscal obligations require increased attention from real estate owners and developers, which makes specialized consultation essential to ensure compliance with all legal obligations, including those regarding tax increases, reporting to ANAF and preventing further litigation”said lawyer Radu Pavel, coordinator of the Romanian Law Society Pavel, Mărgărit și Asociații.
In conclusion, Project L213/2025, by significantly increasing taxes and fees especially for buildings, land and cars, will have a major impact on the real estate market, owners and companies. The legislative changes emphasize the need for sound legal and fiscal preparation, especially regarding the proper management of properties and compliance with obligations towards ANAF.
