Romania Introduces Luxury Tax on High-Value Properties and Vehicles
Romania's National Agency for Fiscal Administration (ANAF) has drafted an order to establish the declaration framework for a new luxury tax, in line with the nation's fiscal sustainability measures.
Jordan Taylor
- 2023-12-30
- Updated 07:26 PM ET
(NewsNibs) - The recently unveiled draft order by ANAF specifies the declaration process for the luxury tax that targets high-end real estate and vehicles. This initiative follows Law No. 296/2023, a legal measure aimed at bolstering Romania's long-term fiscal health. The luxury tax is pegged at a rate of 0.3% for any value that surpasses 2.5 million RON (approximately 500,000 EUR) for property, and 375,000 RON (around 75,000 EUR) for vehicles, respectively.
Tax Obligations for Property Owners
Under the new legislation, individual owners or co-owners of residential properties in Romania with a taxable value exceeding 2.5 million RON are required to pay the luxury tax. This encompasses a segment of real estate considered to be part of the luxury market, ensuring that high-value assets contribute proportionately to the state revenue.
Tax Conditions for Vehicle Owners
Similarly, the tax applies to both individuals and companies possessing vehicles in Romania which have an acquisition value greater than 375,000 RON. This tax obligation on vehicles extends for a term of five years starting from the fiscal year in which the vehicle is accepted. In cases where acceptance predates the legislation, the tax is imposed for the remaining duration of the five-year frame. The cut-off dates for the declaration and payment of taxes are April 30th for real estate and December 31st for vehicles in the respective tax year.
Anticipating Fiscal Impact and Compliance
With the upcoming implementation of this luxury tax, Romania anticipates an augmentation to the state budget and an elevation of financial sustainability. The authorities expect compliance with the deadlines stipulated: by April 30th for the declaration and payment of the tax on residential properties and by December 31st for vehicles within the tax year due. The communal effort in upholding these fiscal responsibilities plays a crucial role in supporting the country’s economic framework and long-term viability.
