Purchasing a Home with 9% VAT: The New Deadline and the Conditions Applicable to Buyers

In accordance with Law no. 161/2026, the new deadline until which the reduced 9% VAT rate may be applied to the purchase of a home has been extended until 30 September 2026. The provisions of the legislation apply to individuals who concluded pre-contracts (sale-purchase promises) and paid an advance by 31 July 2026. Individuals who paid the standard VAT rate between 1 and 6 August 2026 may recover the VAT difference with the assistance of a real estate litigation lawyer.

A lawyer specialized in civil litigation can assist in recovering the resulting claim. The measure comes in the context of the unavailability of the services provided by ANCPI (the National Agency for Cadastre and Land Registration), following a cyberattack, which caused disruptions in the completion of the documents required for the purchase of real estate. Pavel, Mărgărit and Associates Romanian Law Firm provides legal services for the drafting, review and negotiation of sale agreements, as well as due diligence services aimed at verifying the legal status of real estate. The analysis of documents and entries in the Land Book makes it possible to identify potential encumbrances, litigation, promises of sale or other rights existing over the property.

Real Estate Lawyer. Purchasing a Home with 9% VAT Instead of 21%: How a Lawyer Can Help You Complete the Transaction on Time

For the purchase of a single home subject to the reduced 9% VAT rate, the buyer must take into account a number of conditions provided by Law no. 161/2026. In this respect, a civil lawyer can assist you with drafting the addenda related to the sale agreement.

Furthermore, even though access to ANCPI services has been limited, many of the steps required for the purchase of real estate can be prepared with the assistance of a real estate lawyer, so that the process can continue without interruption immediately after services resume. “The extension of the deadline for applying the 9% VAT rate gives buyers additional time; however, completion of the transaction may depend on fulfilling several legal and administrative formalities,” stated Dr. Radu Pavel, Managing Partner of Pavel, Mărgărit and Associates Romanian Law Firm.

Given the significant stakes involved in a sale agreement on the Romanian real estate market, whether you are selling a property or purchasing a property, taking certain steps before entering into the sale agreement can help prevent potential disputes or risks related to delays in the delivery deadline or changes to the initial project.

The Romanian Law Firm Pavel, Mărgărit and Associates provides comprehensive legal assistance in the real estate sector, offering legal advice and representation to companies in Romania. Do not hesitate to contact us by completing the form available on our website: https://avocatpavel.ro/contact/.

Civil Lawyer. Who Can Purchase a Home with 9% VAT Until September? Eligibility Requirements

Civil Lawyer. Who Can Purchase a Home with 9% VAT Until September? Eligibility Requirements

The provisions of Law no. 161/2026 require the purchased dwelling to have a usable floor area of no more than 120 sqm, excluding household outbuildings, and a value, including the land on which it is built, not exceeding RON 600,000, excluding value-added tax.

Housing Law no. 114/1996 defines the usable floor area of a dwelling as the total area of its interior spaces, including rooms, bathrooms, the kitchen, and storage and circulation areas. The calculation does not include, among others, balconies and loggias and, in the case of duplex dwellings, the staircase flight, excluding landings.

Furthermore, upon delivery, which must take place no later than 30 September 2026, the dwelling must be habitable as such. The individual must not have previously purchased another dwelling subject to a reduced VAT rate on or after 1 January 2023.

As regards individuals who concluded pre-contracts (promises to sell and purchase) between 3 and 31 July 2026, the beneficiary must provide evidence of having paid an advance of at least 20% of the value of the dwelling (excluding VAT), paid in full by 31 July 2026, in order to benefit from the reduced VAT rate upon delivery.

Individuals are also subject to the requirement concerning the completion of the “Register of Residential Property Purchases Subject to the Reduced VAT Rate” on the date of authentication of inter vivos legal instruments concerning the transfer of ownership of the dwellings referred to in paragraphs (1) and (2).

Review of the Preliminary Sale Agreement and the Conditions for Applying the 9% VAT Rate. The Role of a Real Estate Lawyer in Completing a Transaction Within the Deadline

The unavailability of ANCPI services resulted in delays that prevented transactions from being completed within the applicable deadline, while buyers who had concluded pre-contracts (promises to sell and purchase) were unable to finalize the sale by the initial deadline.

Even where a preliminary sale agreement has been concluded, the transaction may not necessarily qualify for the reduced 9% VAT rate. A real estate lawyer can provide legal assistance in identifying the formalities preventing the execution of the final sale agreement and can verify whether the preliminary agreement and the transaction meet the eligibility requirements for the reduced VAT rate.

Land Registry and Cadastre: Why Can They Prevent the Completion of a Property Purchase Subject to the 9% VAT Rate?

For a real estate transaction to be completed within the applicable deadline, the cadastral status of the property and its registration in the Land Registry are essential elements for the transfer of ownership.

Under Law no. 7/1996, the cadastre and the Land Registry form a unified and mandatory system for the technical, economic and legal registration of all properties throughout Romania.

A real estate sale and purchase cannot be enforceable against third parties without the relevant registration in the Land Registry. Therefore, the disruption of ANCPI services may significantly affect the completion and registration of property transfers in Romania.

A real estate lawyer can provide legal assistance with the review and negotiation of sale agreements, as well as due diligence services aimed at verifying the legal status of the property. The analysis of the relevant documents and Land Registry records can identify potential encumbrances, disputes, promises to sell and purchase, or other rights affecting the property.

Civil Litigation Lawyer. Performance of the Sale Agreement

The execution of the sale agreement in authentic form entails both rights and obligations for both parties.

The seller’s main obligations are to transfer ownership of the property sold, to deliver it and to warrant the buyer against defects and eviction, namely a situation in which the owner’s possession and use of the property are disturbed by another person claiming a right over it. The seller is also responsible for removing from the Land Registry, at their own expense, any rights registered against the property sold where such rights have been extinguished. As regards the buyer’s obligations, the buyer must take possession of the property and pay the purchase price within the deadline stipulated in the agreement.

In conclusion, registration of the ownership right in the Land Registry represents an essential stage of real estate transactions, including from the perspective of enforceability against third parties, while the unavailability of ANCPI services may cause significant delays in their completion.

In this context, individuals who risk no longer being eligible for the reduced 9% VAT rate applicable to the purchase of a dwelling may seek the assistance of a real estate lawyer to verify compliance with the eligibility requirements, review the documentation relating to the transaction and, where appropriate, draft the necessary addenda in order to protect the buyer’s rights and interests.

Pavel, Margarit and Associates Romanian 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 Romanian law firms with the most relevant expertise. The Romanian law firm is internationally recognized by the IFLR 1000 Financial and Corporate 2025 guide. Additionally, Pavel, Margarit and Associates Romanian 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 Romanian Law Firm can be found on the website www.avocatpavel.com.