Property taxes will not increase in 2027, declared Prime Minister Ilie Bolojan, but they would also be established based on software currently being developed at the Ministry of Finance, which will generate data on the market value of properties.
"Property taxes are not expected to increase in 2027, but Romania, in the PNRR, has committed to preparing a calculation model in which property tax is calculated at market value. In almost all European countries, property taxation is calculated at market value. We were left with some old indicators, in which the value was an accounting type, defined, after which different percentages were applied, depending on the locality, depending on the zoning of the locality and so on. This year we tried to come up with a formula that would approach the average market value in Romania", Ilie Bolojan told Radio Romania Actualitati on Friday.
He stated that from 2027, city halls and citizens should have access to software that would show the market value of real estate in each locality, at least by area, which would be a basis for calculating local taxes.
"When this software, which is being worked on at the Ministry of Finance, through a collaboration with the World Bank, will be finalized this year, it receives data from the market, all transactions that are made in Romania must be communicated in a system, in such a way that, from the hundreds of thousands of transactions that are made in a year, I can determine the market value of real estate in the Militari area, in Bucharest, or in a neighborhood in Timisoara, or in Iasi, and so on, or in a commune in Romania. So, from 2027, city halls and citizens should have software in which they can see the market value of real estate in each locality, at least by area, which would be a basis for calculating local taxes. So, it's not about an increase, it's simply about a refinement, a granularity of this data, which today we don't have, we are working on it", Bolojan also stated.
He explained that one is the market value and the other is the taxation percentage.
"The value of a tax is determined by two components - the base, the market value and the taxation percentage. The municipalities will have the possibility to regulate this percentage. Even if, hypothetically, the tax base, the market value, is higher than today's value. Today it is somewhere, I think, around 500, a little over 500 euros per square meter. Of course, in rural areas it is lower, in urban areas it is higher. But this calculation can be regulated by the municipalities in such a way that the level of taxes in Romania is not different in a general proportion in 2027 compared to 2026", Bolojan explained.
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