Romania's property tax revolution: key changes from 2027

 

Businesses looking to rent or own office and warehouse space in Romania need to be aware of a major shift in property taxation. Starting in 2027, the country will implement a new system based on the market value of buildings, aligning with World Bank recommendations and PNRR commitments. This move aims to modernize property valuation through a national digital database, 'eProprietatea', designed to provide regularly updated market values.

 

Understanding the impact on commercial real estate

 

The transition to market value-based taxation is projected to bring significant changes to property costs. For commercial buildings, especially those valued over 2.5 million lei, taxes could potentially triple. Land taxes are also expected to double. This represents a substantial increase that could influence rental prices for office and warehouse spaces, as landlords may pass on higher property tax burdens to tenants.

 

For businesses considering property acquisition or long-term leases, understanding these future cost implications is crucial for strategic planning and budgeting. While the government had previously postponed these tax provisions until early 2026, maintaining the current system for now, the 2027 deadline for the new regime is firm.

 

The role of eProprietatea and future outlook

 

The 'eProprietatea' digital platform will be central to this reform, providing transparency and standardization in property valuation. A specialized structure within the Ministry of Finance is being established to oversee the implementation, signaling the government's commitment to this new system. This digital infrastructure is expected to create a more dynamic and responsive property tax environment, reflecting actual market conditions.

 

Businesses should begin evaluating how these changes might affect their operational budgets, lease agreements, and overall real estate strategies in Romania. Proactive planning will be key to navigating the new tax landscape effectively from 2027 onwards.

 

Source: forbes.ro