Romania's new property tax to be based on market, not book value

The Romanian Government plans to impose a building tax calculated on the market value of the property, rather than on the book value, as it is currently done. This will be included in the latest version of the Fiscal Code, and should help boost budget revenues, according to Mediafax newswire. The Government argues the book value of a property can be substantially different than its market value, depending on the accountancy method used. The market value will be established by an authorized appraiser. For residential buildings owned by companies, the tax will be 0.1 percent of the value, and for non-residential buildings, between 0.25 and 1.5 percent of its value, using the new criteria. The actual tax rate will be decided by local authorities. editor@romania-insider.com