Romania's impozit pe transferul proprietăților imobiliare (property transfer tax) is an income tax on the proceeds of selling real estate, paid by the seller. Unlike in many countries, Romanian transfer tax is structured as an income tax on the seller rather than a stamp duty on the buyer. The rate and any exemptions depend on how long the seller has owned the property.
For properties held for fewer than three years, the transfer tax is 3% of the sale price as declared in the notarial deed. For properties held for three or more years, the rate reduces to 1%. These rates apply after deducting a tax-free threshold of RON 450,000 (approximately €90,000). The tax is withheld and remitted directly by the notary from the proceeds of sale.
Certain transfers are fully exempt from transfer tax: transfers by inheritance, gifts to first-degree relatives or spouses, court-ordered transfers in divorce proceedings, and transfers as contributions to company capital. Primary residence transfers may benefit from reduced rates under specific conditions — consult a Romanian tax adviser for current rules.
Foreign sellers of Romanian property must pay Romanian transfer tax on the same basis as Romanian sellers. Additionally, if the seller is resident in a country without a double taxation treaty with Romania, they may face Romanian withholding obligations. Countries with which Romania has tax treaties include most EU member states, the UK, USA, and many others.
The notary calculates and withholds the transfer tax at the time of signing the notarial deed, remitting it directly to the state on behalf of the seller. This means the tax is effectively deducted from the purchase price before the seller receives their net proceeds. Foreign sellers should factor this deduction into their financial planning.
Key Facts
| Rate | 3% (held <3 years) or 1% (held ≥3 years) on price above RON 450,000 |
|---|---|
| Paid by | Seller — withheld and remitted by notary at signing |
| Exemptions | Inheritance, gifts to close relatives, divorce transfers, capital contributions |
| Foreign sellers | Same rates apply — treaty relief possible depending on residence |
| Tax-free threshold | RON 450,000 (~€90,000) deductible from sale price |
Frequently Asked Questions
Does the buyer pay any transfer tax in Romania?
No Romanian transfer tax falls on the buyer. However, the buyer does pay notarial fees and land registration fees, which together typically amount to 1–2% of the purchase price. Budget these in addition to the purchase price.
Is there capital gains tax in addition to transfer tax?
Romania's transfer tax is effectively a flat-rate capital gains tax on property disposals. There is no separate capital gains tax on Romanian property for individuals. However, corporate sellers (companies) pay standard corporate income tax on gains rather than the individual transfer tax rates.
What if the property is sold below market value to a family member?
The transfer tax is calculated on the declared notarial deed price. ANAF may challenge transactions where the declared price is below market value. Notaries are required to report transactions where the price appears significantly below market comparables.