Local taxes 2019

Recall that the Fiscal Code, Law 227/2015, in Articles 453 et seq. regulates the prerequisites, settlement and declaration of the local tax on real estate, means of transportation and advertising. In terms of importance, certainly the local property tax is among the different meanings the one worthy of the most attention both because it can give rise to highly critical situations (if the three-year revaluation is not carried out) and because of the tax revenue it guarantees to local municipalities. We point out that the first installment of the tax is due on 3/30/2019 while the second is due on 9/30/2019.

The local construction tax

The general assumption is that any person, natural or legal, who holds the right of ownership with respect to real estate located in Romania is obliged to pay the local tax. The law provides for the application of rates resolved by the municipal council where the property is located within a minimum and maximum already established normatively. The minimum and maximum rates are between 0.08% and 0.2% of the taxable value of the property as declared to the municipality by the owner (according to the deed of purchase).

Peculiar is the regulation for legal entities. In fact, the aforementioned rates apply to legal entity owners only for residential property while for commercial and office space the maximum rate rises to 1.3 percent! Additionally, if the corporate owner fails to revalue the property value every three years by updating the tax base of the property, the tax rises to 5 percent!

Ultimately, we recall that the municipality normally notifies the owner’s domicile of the settlement of the local tax for property located in the compentent territory.

We remain available for any clarification regarding local taxes 2019.