The tax changes include increasing building, land, and high-value asset taxes, abolishing reductions for residential and mixed-use properties, standardising agricultural building taxation, and introducing specific vehicle taxes with limited incentives for electric and hybrid cars.

Romania’s government submitted an updated draft law to parliament, amending direct taxes under the Fiscal Code (Law No. 227/2015), with changes to local taxes and high-value assets.

These changes will take effect on 1 January 2026.

The key tax measures are as follows:

Local taxes

  • Local authorities cannot set the building tax rates lower than the 2025 levels.
  • For individually owned residential properties, taxable values per m² rise to RON 201–2,677 (previously RON 75 – RON 1,000) with no reductions for building age or size
  • Significant renovations no longer increase the value of the buildings by 50%.
  • Individual-owned agricultural buildings are taxed at standard rates, rather than at 0.4%.
  • Buildings owned by legal entities are taxed as non-residential
  • Reduced rates for residential or mixed-use properties have been abolished.

High-value assets taxes 

The tax rate on high-value assets, such as residential buildings exceeding RON 2.5 million and cars exceeding RON 375,000, is proposed to rise from 0.3% to 0.9%.

Land taxes

  • Land tax is raised to RON 143–150 per hectare based on use and location, with some exceptions.

Means of transport taxes

  • Electric vehicles pay a yearly vehicle tax of RON 40, while hybrid vehicles with a CO₂ emissions of ≤50 g/km may be eligible for a 30% reduction.
  • Local freight vehicle taxes are updated annually based on the October EU exchange rate and Directive 1999/62.

Other taxes

  • Local authorities can raise local tax rates by up to  100% (previously 50%).
  • Tax exemptions/reductions for buildings, land, and transport require supporting documents and timely payment of the previous year’s taxes.
  • Local tax calculation rules from Government Ordinance 16/2022, which is postponed until 2026, are repealed.