The Romanian Government successfully passed the Decision which provides clients interested in a larger space to live a payment of only 5% VAT on a house purchase. This decision will enter into force on January 1.
There are few conditions clients must meet. For example, the VAT exemption is only valid for the purchase of a new apartment, not exceeding 120 square meters and a price limit of 100,000 euros.
Given that the value added tax is 19% , the reduction will be 14 %.
For instance, for an apartment of three rooms which would cost 90,000 euros, the reduction is 12,600 euros. So, the buyer will pay only 77,400 euros.
The reduction is valid for those who want to leave the cramped communist bloc such as: Pantelimon or Militari, to a residential area falling within the requirements of the new law.
Romanian Government like other Governments around the world is taking actions to speed the economy back to normal.
This action expected to increase real estate activity.