Romania: Reduced VAT rate on specific dwellings extended to September 30, 2026
The reduced rate applies to the purchase of a single home of up to 120 square meters and RON 600,000 (excluding VAT), provided a prepayment agreement was signed before August 1, 2025.
The Romanian Parliament adopted a law extending the application of the reduced 9% VAT rate to September 30, 2026, for eligible residential property purchases affected by delays resulting from the National Agency for Cadastre and Land Registration (ANCPI) cyberattack and system outage.
The reduced rate applies to the purchase of a single home of up to 120 square meters and RON 600,000 (excluding VAT), provided a prepayment agreement was signed before August 1, 2025, and, in certain cases, a 20% down payment was fully paid by July 31, 2025.
Eligible buyers who paid the standard 21% VAT rate between August 1, 2026, and the law's entry into force may apply for a refund of the difference starting October 1, 2026.
For more information, contact a KPMG tax professional in Romania:
Vlad Craciun | vcraciun@kpmg.com