Residential Market Genome 2021

THE CURRENT VAT IMPLICATION ON THE RESIDENTIAL MARKET

Romanian real estate knew its ups and downs in the last decade. With the new reality caused by this pandemic and the increase in the number of people working from home, the request for larger apartments boomed in the period when the emergency state was stopped.

From the taxation point of view, part of social policy, the supply of new apartments to individuals is subject to 5% VAT if the surface is lower than 120 sqm and the value is below 450,000 RON. It is worth mentioning that the value also includes the value of the parking place/storage places if sold together with the apartment.