Hurry up! The 9% VAT is leaving, 21% VAT is knocking at the door

Planning to Buy a New Home in Romania in 2025? Major VAT Changes Are Coming!

If you’re considering purchasing a new property in Romania in 2025, now is the time to get informed — and act fast. The Romanian government has announced a significant change in the VAT system that directly impacts new residential homebuyers.

From August 1st, 2025, the reduced 9% VAT applied to homes under 600,000 lei (~€120,000) will be replaced with the standard VAT rate of 21%.

What’s the impact?

Depending on the purchase price, this change could mean up to €12,000 more out of pocket for the same home — a major increase for most buyers.

What Is the 9% VAT and Why Did It Matter?

Until now, Romania offered a reduced VAT of 9% on new residential properties that met the following criteria:

• Price below 600,000 lei (~€120,000)
• Maximum 120 sqm usable space
• Buyer is a private individual

This fiscal incentive made new homes much more affordable and helped boost access to homeownership — especially for first-time buyers, young families, and those looking for a modern and efficient living space.

What Will Change from August 1st, 2025?

Starting on that date, two key things will happen:

• The standard VAT rate will increase from 19% to 21%
• The 9% VAT for housing will be eliminated, except for a few specific cases

Is There Any Way to Still Qualify for the 9% VAT?

Yes — but only if you meet all six conditions below:

• You are a private individual
• You have not previously used the 9% VAT benefit for any home since January 1st, 2023
• The property must have a usable area of max. 120 sqm and cost no more than 600,000 lei
• You must sign a notarized pre-sale agreement by July 31st, 2025
• You must pay an advance (minimum 5%) by the same date
• The property must be delivered by August 1st, 2026

Failing to meet any of these requirements means you’ll automatically be charged the higher 21% VAT on your property purchase.

What Does This Mean for Your Mortgage?

The increase in VAT will directly affect financing, especially if you're relying on a mortgage. A higher purchase price means:

• Larger down payment required
• Higher monthly mortgage payments
• Stricter lending conditions — as you’ll need to demonstrate higher income

For many buyers, these changes could significantly limit affordability or delay homeownership altogether.

What Should You Do Now?

If you want to secure the 9% VAT and save thousands of euros, here’s your action plan:

• Find a qualifying property (under 600,000 lei and max. 120 sqm)
• Confirm with the developer that the property can be delivered by August 1, 2026
• Sign a notarized pre-sale contract and pay at least 5% in advance by July 31, 2025
• Consult a mortgage broker or real estate consultant to prepare and submit your credit file in time

Final Thoughts: Time Is Not on Your Side

This VAT change is not just a minor policy adjustment — it’s a game changer for buyers in Romania’s new housing market. If you’re planning to buy in 2025, your window of opportunity closes on July 31st.

Don't wait until it’s too late.

Secure your contract, lock in the 9% VAT, and protect your budget and your future home.

Need help navigating this process?

Reach out now to a trusted real estate advisor or mortgage broker who can help you meet the deadlines and make an informed, financially smart purchase.

Act early. Buy smart. Save more.