Changes And Clarifications Regarding Construction Tax In Romania

April 2025 – On 4 April 2025, Romania government Emergency Ordinance no. 21/2025 ("the GEO") was published and entered into force, introducing several important amendments and clarifications regarding the recently enacted construction tax. We summarise the main provisions below.

• Reduction of the tax rate: The construction tax rate has been decreased from 1% to 0.5%.
• Tax base clarification: It is now explicitly clarified that the 0.5% tax applies to the net book value of constructions.
• New separate tax (0.25%): A separate tax of 0.25% has been introduced for buildings belonging to the public or private domains of state or administrative-territorial units that are utilised based on contracts, agreements, or legal acts establishing rights of administration, concession, free use, or rental. This tax is payable by taxpayers utilising these buildings under the aforementioned arrangements.