Romania stands out in the European fiscal landscape through a significantly lower level of property taxation compared with the European Union average, according to Cushman & Wakefield Echinox.
Tax rates applied to buildings, including residential properties and land, are among the lowest in the EU, with a standard rate of approximately 0.1% – 0.3% for residential buildings, while for commercial properties the rate varies between 0.5% and 1.5%.
Reduced taxation is also reflected in the macroeconomic indicators, with only 0.5% of Romania’s GDP being generated by real estate asset taxation, compared with the EU average of 1.9%. In Poland, the share of property taxes in GDP is 1.4%, while in Hungary it stands at 0.8%.
Romania’s share of GDP from property taxes decreased from 0.9% to 0.5% over the last decade, as the GDP growth rate has been significantly higher than the corresponding one from property taxes. Additionally, the taxable values have remained relatively constant since 2016.
Property taxes in Romania account for approximately 2.1% of the total fiscal revenues, below the EU average of 4.7%. In Greece, this share reaches 7%, in Poland 4.1%, while in France it stands at 8.4%.
In absolute figures, the total property tax revenues collected in Romania amounted to €1.8 billion in 2023 (the latest year for which EUROSTAT data is available), substantially below the levels registered in countries such as Poland (€10.7 billion) or Italy (€45.3 billion).
In France, revenues from property taxation exceed €100 billion annually, while in Germany they reach €40 billion. In Spain, nearly €38 billion is collected each year from real estate taxation.
In terms of taxes per capita, a Romanian contributes approximately €93 annually in property taxes, compared with the EU average of €710 and €1,550 in France. In Poland, this indicator stands at €300, while in Hungary it reaches €163 per year.
Articolul Romania, among the most favorable EU countries for property taxation a fost publicat prima dată în Money Buzz! • Știri Economice, Știri Financiare, Știri Business