Romanians will benefit from reduced VAT on housing until 2027: What buyers need to know
The government recently announced the extension of the measure regarding the 9% reduced VAT rate for the purchase of certain homes. This tax incentive, which was supposed to change, will remain valid until the end of 2027, thus offering significant support to people who want to buy a house in the coming period.
To benefit from this reduced rate, homes must meet certain strict conditions imposed by legislation. Specifically, the sale price of the apartment or house must not exceed a certain threshold set by the authorities. Furthermore, the measure applies primarily to homes with a limited usable area, thus maintaining the social nature of the incentive.
This decision comes in the context of the Romanian real estate market having gone through significant changes in recent years. Authorities explained that the purpose of extending this program is to support the construction sector and help young families more easily access their own home, during a period marked by rising prices for construction materials.
Buyers are advised to carefully check whether the targeted property falls within the new regulations before signing the sale-purchase agreement. Notaries and real estate developers are required to inform clients about these conditions to avoid any confusion regarding the application of the VAT rate.
In conclusion, the extension of the incentive until 2027 offers greater predictability for the Romanian real estate market. Those interested in purchasing a new home are encouraged to analyze the available offers and ensure they meet all legal criteria to benefit from the tax reduction.