The costs of a property transaction do not stop at the price. Both buyer and seller pay taxes and fees, and some of them can influence the decision or the negotiation. In this article we explain how these costs are structured without fixing percentages that change through legislative amendments. For exact figures, the notary calculates them on the date of the transaction.
The general principle: who pays what
In practice the usual rule is:
- The seller pays income tax on the property transfer.
- The buyer pays the notary fee and registration charges.
- Agency fees are set by the brokerage agreements, separately for each party.
The parties can agree otherwise by contract, but any arrangement must be clearly written down.
The seller’s tax
When an individual sells a property, tax is due on the income from the transfer. Under the Fiscal Code, the rate depends on how long the seller has owned the property and sometimes on the transaction value. These rules have been amended several times, so we do not reproduce them here as figures.
The tax is calculated on the contract value, but not less than the minimum value in the notaries’ market study for that area. The notary collects it and pays it to the state, so the seller has nothing else to do.
Special situations
- Inheritance: tax may be due when the estate is settled if the procedure is not completed within a certain period after death.
- Gifts: tax rules depend on the family relationship between the parties.
- Companies: transactions between companies follow their own rules, including on VAT.
The buyer’s costs
Notary fee
The fee for authenticating the contract is calculated in value bands, using a scale set for notaries, plus VAT. Fees can be negotiated within certain limits. The notary can give you an estimate before you book.
Registration
Registering ownership in the land book involves a fee paid to the cadastre office, calculated on the transaction value. The notary files the application.
Other costs
- The land book extract for authentication
- Property valuation, if you use a mortgage
- Bank fees and insurance
- Translation and an interpreter if either party does not speak Romanian
You can estimate these quickly with the notary fee calculator.
VAT on new homes
When buying a new home directly from a developer, the price normally includes VAT. In some years the law has provided a reduced rate for homes meeting certain size and value conditions bought by individuals. The conditions and period of application have changed, so check the regime in force with the developer and the notary. Ask for the price in the preliminary contract to state clearly whether VAT is included.
Annual building and land tax
After buying, you become liable for building tax and, where relevant, land tax. You must register the property with the local tax office within a legal deadline. The tax level is set by each local council within legal limits and takes the building’s value into account. It is paid annually, usually in two instalments, often with a discount for paying in full on time.
Tax on rent
If you let the property, rental income is taxed, and above certain thresholds social contributions may also apply. The exact regime depends on the law in force and the number of contracts. Practical details on profitability are in our article on buy to let yield.
Indicative table of responsibilities
- Transfer tax: the seller, via the notary.
- Notary fee: usually the buyer.
- Registration: the buyer.
- Tax certificate and association certificate: the seller.
- Energy certificate: the seller.
- Bank valuation: the buyer, if using a mortgage.
- Annual building tax: the owner, after the transfer.
Example budget for a buyer
Suppose you buy an apartment with a mortgage. Besides the deposit, your budget should include: the notary fee for the sale contract and the mortgage contract, the registration fee, the land book extract, the valuation required by the bank, processing fees and the first year of insurance premiums. If you work with an agency, add the agreed fee. Ask for every figure in writing before the preliminary contract and keep a reserve for small exchange rate differences, especially when the price is set in euros and payment is made in lei.
Practical tips
- Ask the notary for a written estimate of all costs before signing.
- Agree in the preliminary contract who bears each cost, including unusual ones.
- For new homes, check the VAT regime before paying a deposit.
- Keep all tax documents for any future checks.
Frequently asked questions
Does the buyer pay tax on a purchase?
Generally, the transfer tax is owed by the seller. The buyer pays the notary fee, registration and, where relevant, bank costs.
Can the notary fee be negotiated?
Notary fees follow a reference scale but can be negotiated within certain limits. Get estimates from two notaries for a high value transaction.
When do I register the property for local tax?
Within the legal deadline from the date of acquisition. The notary can tell you the deadline, and many town halls accept the declaration online.
Next steps
If you are preparing a transaction, read the buyer guide or the seller guide. For specific questions about a property, write to us and we will connect you with an advisor and, if needed, a partner notary.
This article is for information only and is not tax or legal advice. For your specific situation, consult a notary or a tax adviser.
