VAT for housing in 2025: what you need to know about VAT rates for purchasing a home

12Feb2025

The legislation on VAT for housing in 2025 brings significant changes, impacting both buyers and real estate developers. VAT rates directly influence the final cost of homes, which is why it is essential for those interested in purchasing an apartment or house to be well-informed.

To make the best decision, future homeowners must understand exactly how VAT for housing works in 2025, the conditions set by the legislation, and the opportunities that may arise depending on the type of property purchased. Additionally, it is important to analyze the impact on the total budget and to be aware of any tax benefits or changes that may affect the final price.

Here you can view apartments in GREENFIELD Băneasa that benefit from 9% VAT and 19% VAT – View apartments

What are the VAT rates for housing in 2025?

In Romania, VAT for housing is applied based on the value of the property and the conditions set by law. In 2025, there are two main VAT rates:

• 9% VAT – for homes that meet certain conditions, such as usable area and a value that does not exceed a legally established threshold. This rate applies only if the buyer has not previously purchased a home with reduced VAT.
• 19% VAT – for homes that do not meet the conditions for the reduced 9% rate or for those who have previously benefited from a purchase with reduced VAT.

Conditions for applying the reduced 9%

VAT rate To benefit from the reduced VAT rate of 9%, the following conditions must be met:

• The property must be new and purchased by an individual.
• The usable area of the property must not exceed 120 sqm.
• The total price of the property must not exceed the threshold set by law, specifically 600,000 lei.
• The buyer must not have previously purchased a home with reduced VAT of 5% or 9%.

At GREENFIELD Băneasa, we offer apartments that meet these criteria, so our clients can benefit from the advantages of reduced VAT.

Conditions for applying the 19% VAT rate

If the property does not meet the necessary criteria for the reduced 9% VAT rate, the standard VAT rate of 19% will automatically apply. This occurs in the following situations:

• The property has a usable area greater than 120 sqm.
• The value of the property exceeds the legally established threshold for reduced VAT.
• The buyer is a legal entity.
• The buyer has already benefited from a purchase of a home with reduced VAT and no longer meets the criteria set by law.

Although the 19% VAT applies to some properties in GREENFIELD Băneasa, the benefits offered by the community, energy efficiency, facilities, and construction quality make it a valuable long-term investment.

Advantages and disadvantages of applying different VAT rates

Applying the reduced 9% VAT rate is an advantage for buyers, keeping the price more affordable compared to the standard 19% VAT. However, the restrictions imposed on the reduced VAT rate may influence purchasing decisions. At GREENFIELD Băneasa, we focus on transparency and personalized advice, ensuring that each client can make an informed decision.

Tips for buyers: how to take advantage of the reduced VAT for housing in 2025

If you are looking to buy an apartment and want to benefit from the reduced 9% VAT, we recommend:

• Get informed from official sources about the threshold for reduced VAT.
• Check if the desired home meets the conditions for applying the 9% VAT rate.
• Plan your purchase to ensure it complies with the new tax regulations.
• Discuss with the sales team to find the ideal solution for your needs. Call a consultant

The VAT applied to homes in 2025 can significantly influence your purchasing decision. At GREENFIELD Băneasa, we ensure that we provide our clients with quality, energy-efficient homes at competitive prices. If you want to take advantage of the benefits of the reduced 9% VAT rate, our team is here to guide you step by step through the purchase process.