When you want to buy a new home, one of the most important steps is calculating the budget. And, even if it's not the first thing you think of, remember that the payment of VAT, that is, value added tax, is still the responsibility of the buyer. By the way, from 2023 there will be new rules regarding the VAT applied to real estate. Find out more from the following lines.
In the meantime, find out what financing options we provide you, but also who pays the notary fees< /a>.
What has happened since 2019?
In January 2019, law 30 of 2019 came into force, regulating the value of real estate VAT of 5%, but only for natural persons who bought a < a href="https://aquacity.ro/ro/apartamente">apartment/home.
Thus, 5% real estate VAT in 2019 was granted to natural persons if the purchase price of the house did not exceed 700,000 RON, without value added tax and if the usable area of the building it was no bigger than 120 square meters, without the outbuildings. By the way, find out what is the difference between < span style="font-weight: 400;">usable surface and built surface.
On the other hand, if we are discussing transactions between legal entities, VAT is calculated at 19%, regardless of whether the above conditions are met. A company can also pay 0% VAT for housing, but only if it opts for reverse taxation.
Those who did not meet the above conditions continued and continue to pay VAT of 19%.
What changed in 2022?
How much is real estate VAT in 2022? The situation with real estate VAT 2022 was a little different. More precisely, the most important change was related to the price of the purchased houses. More recently, for 5% VAT, the maximum value accepted was 450,000 RON. So, with 5% VAT you could purchase any real estate you wanted, regardless of their age, but only once per individual/family and only in the case of new homes you could benefit from reduced taxation up to the ceiling of 700,000 RON.< /span>
What is the real estate VAT rate in 2023?
From January 1, 2023, the ceiling will be changed (that is, it will be reduced) for which 5% VAT is paid, which will generate an increase in prices for certain types of apartments. Not only the ceiling will decrease, but also the number of maximum possible purchases.
According to the new law, the ceiling for reduced taxation drops from 700,000 to 600,000 RON. In addition, you will benefit from this VAT rate only once, without taking into account the value of the purchased good. Any transaction contracted before January 1, 2023, the date of entry into force of the new law, will comply with the rules of 2022.
Opinions are divided among analysts. Some believe that this will lead to a reduction in housing prices, others believe that prices will increase. It is certain that real estate investments will become a little more difficult for individuals. In this context, will increase the rates for housing?
Take the above aspects into account if you have not yet calculated your total budget for the apartment you are going to buy!