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Latest Changes for the Local Taxes in Romania in 2016

Written by: Bridgewest

Latest-Changes-for-the-Local-Taxes-in-Romania-in-2016.jpgThe new Fiscal Code brings certain changes to the local taxes payable by individuals who own residential or non-residential buildings. This local building tax is calculated according to the scope for which the building is used. Foreign investors in Romania who own property and lease it can request the services of our Romanian accountants for tax assistance.

The taxation of residential and non-residential buildings in Romania

 
The current fiscal regime in Romania differentiates between two types of buildings: those for residential use and those used for other purposes. The 2016 tax for residential buildings ones is calculated by adding a quote between 0.08% and 0.2% to the taxable value of the building. This quota is established at a local level and many local councils are using the maximum value.
 
The quota is different for non-residential buildings: between 0.2% and 1.3%, also depending on the decision issued by the local council. For new buildings constructed between 2011-2015, the quota is based on the final value of the construction work. Two other calculation methods apply and, if the value of the building cannot be based on any of these calculation methods then the applied quota is 2%.
 
Our Romanian accountants can help you calculate these rates is you have a company in Romania that owns non-residential buildings. 
 

Assistance for calculating the land tax in Romania

 
According to the new Fiscal Code, the land tax is calculated based on several key factors: the surface of the building and its rank, the city in which it is based, the area and type of land used to construct on. Cities in Romania are ranked according to importance as such: tier 1 is Bucharest and tier 5 are villages and communes belonging to cities. 
 
Another change is that this year the first deadline for local tax payment is June 30 as opposed to March 31.
 
The experts at our Bucharest accounting firm can help you with more information about the land tax or other taxes like the car tax. Contact us for accountancy services and personalized advice.