Taxes on real estate properties owned by individuals go up in Romania

Taxes on real estate properties will change starting 2016. Individuals will have to pay higher taxes to local authorities for their properties, according to the new Fiscal Code. Individuals who owns nonresidential properties will be the most affected as their taxes will go up two-fold and in some cases up to 20-fold, reports local Capital.ro. The levels will be decided by local authorities, which will be free to choose a tax rate between 0.2% and 1.3% of the property’s value. The tax on property owned by individuals is currently 0.1% of the property’s estimated value, regardless of its destination (residential or commercial). Individuals have been favored by this system as opposed to companies, which have been paying higher taxes for their real estate properties. Starting next year, there won’t be any difference between taxes paid by companies and individuals on properties. The only differences in taxation will be determined by the property’s type. editor@romania-insider.com