Higher Property and Vehicle Taxes starting 2026: How owners are affected in Romania

Major Changes in Property and Vehicle Taxation: What buyers and owners need to know in Romania in 2026

The Draft Law on establishing certain measures for the recovery and efficiency of public resources and for amending and supplementing certain normative acts (Draft L213/2025), which aims at a substantial increase in local taxes for residential properties and for polluting vehicles, has recently been challenged before the Constitutional Court of Romania. Although the law was adopted by Parliament and sent for promulgation on 20 November 2025, its entry into force remains uncertain due to a constitutional challenge submitted by senators belonging to the parliamentary group of the Alliance for the Union of Romanians (AUR) on 21 November, with the Constitutional Court postponing the hearing for 10 December 2025. The normative act brings fundamental changes to the Fiscal Code, aiming to reshape the system of taxation applicable to local taxes starting in 2026. This article analyzes these changes and the impact of these increases on the real estate market, how owners and companies are affected, and the importance of professional real estate consulting for the effective management of tax implications.

In this context, The Romanian Law Firm Pavel Mărgărit and Associates provides specialized legal services in tax law and real estate law, offering full legal assistance in managing real estate transactions, fiscal consulting on increased taxes and representation before ANAF. Therefore, the support of a real estate attorney, a real estate property lawyer, a land lawyer, a litigation real estate attorney, or practitioners handling real estate litigation in Romania becomes essential. It is also recommended to engage a property tax appeal service, a team conducting a due diligence report, as well as property lawyers near me able to prepare a structured defence, initiate a challenge to a tax assessment decision or an ANAF administrative challenge, ensuring full protection of owners’ rights and preventing future fiscal disputes that may escalate into tax disputes or tax litigation. The assistance of a real estate law firm and a professional offering real estate investment advice remains indispensable.

Tax lawyer in Romania. Increased building tax from 2026 – How Homes and commercial properties will be reassessed

The legislative amendments proposed under Draft L213/2025 introduce significant changes in the calculation of taxes, generating a substantial increase in tax liabilities for all property owners. Under Article 457 paragraph (1) of the Fiscal Code, as a general rule for residential buildings and annexes owned by individuals, the building tax is calculated by applying a rate between 0.08% and 0.2% to the taxable value of the building, the rate being set by local council decision, while in Bucharest this prerogative belongs to the General Council of the Municipality of Bucharest. A new paragraph introduces that the tax rate for 2026 cannot be lower than the rate applied in 2025. These changes directly affect the property assessment processes and raise new concerns that often require the involvement of a fiscal lawyer who can interpret the effects of the new tax assessment obligations.

By amending Article 457 paragraph (2) of the Fiscal Code, the taxable value of residential buildings owned by individuals is increased. For example, according to the table in the draft law, while the current law provided a taxable value of 1,000 RON/sqm, the new draft raises this amount to 2,677 RON/sqm for type A buildings with full utilities (reinforced concrete frames or brick walls), with an average increase of 2.7 times.

Moreover, amendments to Articles 456 paragraph (1) and 464 paragraph (1) reduce the categories of buildings and land exempt from taxes, meaning that more owners, including those engaged in certain economic activities previously exempt, will now owe taxes. Several categories of land and buildings have been removed from the exemption list, such as degraded or polluted land, land unsuitable for agriculture or forestry, as well as exemptions for private medical buildings, greenhouses, silos, or buildings under the administration of RA-APPS.

Previously, the special tax applied to individuals owning residential buildings with a taxable value exceeding 2,500,000 RON and individuals or legal entities owning vehicles with an acquisition value exceeding 375,000 RON, with the local tax authority issuing detailed notifications regarding the taxable value. Under the new version, according to Article 5002 letters a) and b), the tax is no longer applied to the entire value of the asset but only to the difference between the asset value and the legal threshold, applying a rate of 0.9%.

Several provisions regarding the calculation of the building tax have been repealed. Article 457 paragraphs (7), (8), and (9), which previously regulated reductions in taxable value depending on building age, correction coefficients for large apartment blocks, and updates to the completion year in case of major renovations, are no longer in force. Article 458 paragraph (3), which set a 0.4% rate for non-residential buildings used in agriculture, and Article 460 paragraphs (1) and (4), concerning the calculation of residential and mixed-use buildings owned by legal entities, were also repealed.

Engaging a lawyer for taxes, a real estate lawyer, and a business tax attorney near me becomes essential in this context to analyse whether fiscal authorities correctly applied tax rules related to property assessment, tax obligations, income tax lawyer implications or matters concerning tax litigation. For complex ownership or transactional matters, clients often rely on property lawyers near me, practitioners specialised in real estate litigation in Romania, or experts issuing a due diligence report.

ANAF Lawyer in Romania. Higher taxes for cars – Who will pay more and how vehicle taxation is changing

Starting in 2026, the vehicle tax will increase substantially for most drivers. Small cars up to 1,600 cm³ will pay double or even more compared to the previous system, and vehicles up to 2,000 cm³ will experience nearly a 50% increase. Larger cars between 2,000 and 3,000 cm³ will see moderate increases of 10% to 25%, while cars over 3,000 cm³ will pay similar or slightly higher amounts depending on their pollution norm. Commercial vehicles, minibuses, and buses will face increased taxes of approximately 10% to 30%.

The draft also introduces new rules for calculating the tax on motor vehicles, particularly those with mechanical traction. The Ministries of Development, Internal Affairs and Transport will collaborate to establish a data exchange system regarding the pollution norm of each vehicle. The tax is calculated based on the engine capacity, multiplying each 200 cm³ group (or fraction thereof) by a legally established amount. For many companies, this requires both tax and real estate compliance support, typically ensured by a lawyer for taxes and VAT lawyer.

The most significant change concerns hybrid vehicles: the tax reduction is no longer a mandatory minimum of 50% as provided by Article 470 paragraph (3) but becomes an optional reduction of up to 30% granted only if approved by the local council. Consequently, most hybrid owners will pay higher taxes than before. Additionally, Article 470 paragraph (3¹) introduces for the first time an annual fixed tax of 40 RON for electric vehicles.

The Romanian Law Firm Pavel Mărgărit and Associates recommends specialised legal services for companies and individuals managing vehicle fleets, including consultancy from a tax lawyer, fiscal lawyer, VAT lawyer, or income tax lawyer who can clarify the tax calculation methodology and the risks associated with tax increases. In cases where disputes arise, representation by a litigation real estate attorney, real estate attorney, or real estate property lawyer may become relevant if property rights or related fiscal obligations intersect with vehicle taxation matters. When ANAF issues questionable tax decisions, clients often initiate a tax assessment challenge, requiring a strong procedural defence supported by experts in tax litigation, tax disputes, and professionals from a reputable real estate law firm and property tax appeal service, together with a tax lawyer near me, a business tax attorney near me, and aland lawyer.

Real Estate Attorney in Romania. What you need to know when buying property in Romania in 2026 – Fiscal risks and future obligations

Purchasing a property in Romania requires heightened attention to tax litigation and fiscal risks, especially in the context of increased property taxes and obligations toward ANAF. One particularly important aspect is managing currency risk when payment is made in euros. Drafting preliminary sale-purchase agreements may include clauses that “freeze” the exchange rate, protecting the buyer from significant fluctuations between signing the preliminary agreement and the final contract. Additionally, it is recommended to register the preliminary agreement in the Land Registry to safeguard the buyer in case the property owner concludes multiple agreements for the same property, which could otherwise result in substantial financial losses. This practice ensures legal protection, granting priority to the buyer registered in the Land Registry and clarifying the property right from the preliminary contract phase.

For properties held in co-ownership, buyers who intend to partition the property must consider that exiting co-ownership involves strict legal requirements. To enable partition in kind, the land or construction must be easily divisible and comply with urban planning and construction regulations. Identifying all co-owners and obtaining their consent is mandatory, and in the absence of an amicable agreement, partition may only be executed through the courts, in accordance with the Civil Code provisions on co-ownership and partition of common properties. This ensures that property rights are clearly delineated and can be used or leveraged without risks of disputes among co-owners.

Another significant risk concerns administrative and urbanistic irregularities. Verifying building permits, compliance with local urban regulations, and cadastral status is essential to avoid issues such as demolitions, lack of utility connections, or usage restrictions. Furthermore, thorough examination of the Land Registry, mortgages, easements, and other encumbrances on the property allows identification of all legal and fiscal obligations, including income taxobligations, property assessment, tax assessment, or other fiscal responsibilities reported to ANAF.

Consulting a real estate attorney, land lawyer or a real estate property lawyer is essential to protect property rights and prevent financial losses. Such professionals will review preliminary agreements, negotiate clauses that protect the exchange rate, ensure proper registration in the Land Registry, verify compliance with urban regulations, and manage fiscal or litigation-related aspects.

By engaging a real estate law firm, real estate lawyer, or real estate litigation in Romania specialist, clients are ensured full due diligence report services prior to any transaction in the real estate market. A litigation real estate attorney, lawyer for taxes (preferably a tax lawyer near me or property lawyers near me) can provide specialized legal assistance for facilitating exit from co-ownership, correct registration of preliminary agreements in the Land Registry, and, if necessary, initiating a property tax appeal service, a tax litigation procedure, or other actions in relation to income tax lawyer obligations, thereby offering effective legal and fiscal protection to property owners and preventing potential future disputes.

Real Estate due diligence in Romania – Verifying ownership documents, encumbrances and developer contracts

In the context of new legislative changes, verifying property documents and the legal status of real estate is an essential step in any transaction. This process involves examining the title deed, previous agreements, and Land Registry entries to confirm the owner’s identity and the existence of any encumbrances, such as mortgages, easements, or pending disputes. It is imperative that all documents comply with current legislation, including the Civil Code and the Law on Cadastre and Real Estate Publicity no. 7/1996, republished, with subsequent amendments. Additionally, the legality of building permits, urban planning documentation, and the fiscal status of the property, including potential obligations toward ANAF or outstanding debts, must be verified to avoid legal and financial risks.

Another crucial stage is reviewing developer contracts: preliminary agreements, promises to sell, or other arrangements with third parties that may affect ownership rights. It is essential to identify whether the property is subject to litigation, claims by heirs, or co-ownership, in which case the consent of all co-owners is required for sale. Compliance with legal provisions regarding contractual clauses, penalties, and suspensive conditions must also be verified to ensure transaction safety.

The Land Registry extract and cadastral plan provide critical information regarding the property’s area, boundaries, and location, helping to identify possible overlaps or access issues. Furthermore, reviewing the property’s legal history, including previous litigation or pending cases, prevents future problems and confirms that the developer is the rightful owner of the property and that it can be sold without restrictions.

“The new regulations regarding increased taxes and fiscal obligations demand heightened attention from property owners and developers, making specialized consultation essential to ensure compliance with all legal obligations, including property assessment, tax litigation, reporting to ANAF, and preventing future disputes,” stated Dr. Radu Pavel, Managing Partner of The Romanian Law Firm Pavel Mărgărit and Associates.

In conclusion, Project L213/2025, through the significant increase in taxes and levies, especially on buildings, land, and vehicles, will have a substantial impact on the real estate market, property owners, and businesses. The legislative changes underscore the necessity of solid legal and fiscal preparation, particularly regarding the correct management of properties and compliance with obligations to ANAF. Pavel Mărgărit and Associates recommends consulting a real estate lawyer, real estate attorney, tax lawyer near me, VAT lawyer, fiscal lawyer, or business tax attorney near me who can provide specialized real estate investment advice, due diligence report services, legal assistance for contesting tax assessment, property tax appeal service, and representation to protect clients’ interests. This ensures complete legal and fiscal protection and mitigates potential risks associated with rising property and vehicle taxes, including income tax lawyer obligations, real estate litigation in Romania, and other tax disputes.

Pavel, Margarit and Associates Law Firm is one of the top law firms in Romania, providing high-quality legal services. The firm’s clients include multinational and domestic companies of great magnitude. In 2025, the law firm’s success stories brought it international recognition from the most prestigious international guides and publications in the field. As a result, Pavel, Margarit and Associates Law Firm ranked 3rd in Romania in the Legal 500’s ranking of business law firms with the most relevant expertise. The law firm is internationally recognized by the IFLR 1000 Financial and Corporate 2025 guide. Additionally, Pavel, Margarit and Associates Law Firm is the only law firm in Romania recommended by the international director of Global Law Experts in London in the Dispute Resolution practice area. All relevant information about Pavel, Margarit and Associates Law Firm can be found on the website www.avocatpavel.com.