Romania introduced and enacted Government Emergency Ordinance no. 21/2025 (GEO 21/2025) on 4 April 2025, which amends the construction tax (pillar tax).
The provisions of the ordinance take effect upon publication and will be applicable beginning with the 2025 fiscal year.
The construction tax was reintroduced without public consultation, causing businesses difficulties determining the taxable base and concerns about its impact on investments. This feedback led to the 4 April amendments in GEO 21/2025.
Construction tax
The construction tax rate has been reduced from 1% to 0.5%, calculated based on the net value of constructions not taxed locally. A 0.25% rate applies to construction under management, concession, or lease contracts within public or private domains. The tax applies exclusively to constructions on Romanian territory, excluding those located within Romania’s territorial waters.
Structures not subject to building tax and Investments that are incomplete by the end of the year and do not qualify as buildings under the Tax Code are exempt from construction tax.
Discount
Taxpayers can take advantage of a 10% discount on the construction tax if they declare and make their payment by 25 May 2025. The tax can be paid in two installments, with deadlines set for 30 June 2025 and 31 October 2025, or as outlined in the adjusted fiscal year schedule.
