Thus, in per capita terms, a Romanian contributes around EUR93 annually via property taxes, against the EU average of EUR710 and EUR1,550 in France.
The low taxation is also reflected in macroeconomic indicators, so that just 0.5% of Romania’s GDP comes from property taxes, against the 1.9% EU average.
At the same time, revenues from property taxes in Romania account for around 2.1% in total fiscal revenues, below the 4.7% EU average.
“The low property taxation level in Romania has represented a real competitive advantage, which has supported the development of the real estate market and eased population access to housing, thus contributing to Romania’s status as the country with the highest property ownership percentage in the EU. On the other hand, a loose taxation translates into a limitation of funds available for public investments as these taxes are predominantly collected by local administrations,” explains Vlad Saftoiu, Head of Research Cushman & Wakefield Echinox.
In Romania, the tax rates applied to buildings and land plot are among the lowest in the EU, with a standard level of around 0.1%0-.3% for residential buildings, while for commercial buildings the percentage ranges between 0.5% and 1.5%.
(English version by Catalina Apostoiu)