Buying an apartment involves mandatory costs in addition to the sale price: real estate VAT (9% or 19%), notary fees (0.5-2% of the value), and registration fees (0.15%-0.5%).
To avoid unpleasant surprises, you need to know these taxes and consult a complete guide for evaluating and purchasing an apartment.
💸 Home buyers must pay VAT of 9% (for apartments under 600,000 lei and under 120 sqm) or 19% in other cases. This tax is included in the final price.
🏛️ The notary fee varies between 0.5% and 2% of the property’s value, depending on the sale price, and the registration fees at OCPI are about 0.1% of the value.
📑 The buyer bears the VAT, notary fees, and registration costs, while the seller pays the income tax, if applicable. However, expenses can be negotiated between the parties.
💸 Real estate VAT – when and how much you pay for apartments
The Value Added Tax (VAT) is an indirect tax applied to apartment sales. In 2024, the reduced VAT rate was increased from 5% to 9%, which directly impacts a buyer’s budget.
VAT mainly applies to new homes and must be considered when setting the final budget. Don’t forget: accurate information about VAT will help you avoid unpleasant surprises when signing the contract!
📉 Conditions for the reduced 9% VAT
To benefit from the reduced 9% VAT, the home you intend to purchase must simultaneously meet several specific conditions.
Pay attention to details, as any unmet criterion may mean applying the standard 19% rate!
Useful area: Must not exceed 120 square meters (excluding household annexes). Ideal for families or couples starting out!
Total value: Must be under 600,000 lei without VAT, including the related land. Thus, only affordable homes can qualify, making property ownership accessible to more Romanians.
Buyer: Must be a natural person (not a company). Only individuals can benefit from this facility.
Condition of the dwelling: Must be considered habitable at the time of delivery – that is, it can be used immediately after purchase, without major additional investments.
🛠️ What does a “habitable” dwelling mean?
To be recognized as habitable, the property must have access to electricity and drinking water, include at least one space for rest (bedroom), one for food preparation (kitchen), and one sanitary unit (bathroom).
Moreover, it must have minimum interior finishes (finished walls, functional plumbing and electrical systems) and exterior finishes (roof, windows, entrance door).
🤔 Who pays the VAT and how is it paid?
VAT is included in the final sale price and borne by the buyer. However, the seller (generally the real estate developer) has the legal obligation to declare and pay this tax to the state.
For you, as a future owner, it’s important to check whether VAT is already included in the listed price and to make sure there are no other surprises at signing!
🏢 Old apartments and exceptions
In general, old (second-hand) apartments are not subject to VAT, only to notary and registration fees. An exception occurs if the seller is a legal entity that has opted to include VAT – in this case, VAT will be added to the price even for old apartments.
🏛️ Notary fees when buying an apartment – costs and procedures
🔎 Calculation of the notary fee
The notary fee is set based on an official scale and generally varies between 0.5% and 2% of the property’s transaction value.
There is a minimum cap of 100 lei and a maximum of 6,000 lei. For apartments priced between 50,000 and 250,000 lei, the cost is usually around 1% of the property’s value.
Thus, the more expensive the apartment, the higher the absolute amount of the fee, but the percentage may decrease for large transactions.
📁 OCPI registration fees
Registration fee: 0.1% of the apartment’s value, with a minimum of 50 lei. This is required for registering the ownership right in the Land Register.
Land Register excerpt: 30 lei. This document confirms the legal status of the property and is indispensable when concluding the sale-purchase contract.
Encumbrance certificate: 15 lei. It certifies any mortgages or easements registered on the property.
💡 Costs for purchase through a mortgage loan
If you choose to buy the apartment through a bank loan, you must consider additional costs:
Fee for the mortgage contract – usually similar to that for the sale-purchase contract.
Fee for registering the mortgage in the land register (0.1% of the loan value) – essential for guaranteeing the bank loan.
🔔 Other possible administrative costs
Fee for the urban planning certificate (if required by authorities or the bank).
Costs for the technical expertise of the property (if requested by the bank or for clarifying the legal/construction situation).
Fees for authorized translations, especially if one of the parties is a foreign citizen or the documentation is in a different language.
🤝🏻 Who pays what – distribution of taxes between seller and buyer
🎯 Buyer’s role
VAT: The VAT related to the transaction is usually included in the final sale price – the buyer pays it, and the seller collects and transfers it.
Notary fees: The buyer fully pays the notary fees, which include the cost of authenticating the transaction and the fees for the notarial service.
Registration fees: The fee to OCPI for registering the new ownership in the buyer’s name is usually paid by the buyer.
Mortgage costs: In the case of purchase through a loan, all banking and notarial expenses related to the mortgage setup fall on the buyer.
📑 Seller’s obligations
Income tax: If applicable, the seller pays the income tax on the profit obtained from selling the apartment.
VAT transfer: In transactions where the seller is a legal entity, they have the legal responsibility to transfer the collected VAT to the state.
Required documents: The seller must provide all necessary documents for completing the transaction (updated land register, tax certificate, energy certificate, etc.).
🔄 Negotiating expenses – flexibility and balance
The distribution of taxes is not rigid and can be discussed between the two parties. For example, to make the apartment more attractive or to speed up the transaction, the seller may agree to cover partially or totally some notary fees or other costs.
Negotiating the details regarding the division of costs is recommended as early as possible, and all agreed conditions should be recorded in the pre-contract for the protection of both parties.
💰 Taxes when buying an apartment – calculating total costs
✨ Practical example for a new apartment (400,000 lei)
Imagine you are about to purchase a new apartment with a price of 400,000 lei (without VAT). Here’s how the costs would be divided:
Apartment price (without VAT): 400,000 lei
VAT 9%: 36,000 lei (applicable if the apartment meets the conditions for the reduced rate – area, value, and housing status)
Notary fee (estimated, 1%): 4,000 lei (covers legalization and authentication of the contract at the notary)
OCPI registration fees (0.1%): 400 lei (for registering the ownership in the land register)
Other administrative fees (estimated): 200 lei (various required documents and approvals)
All these costs together amount to 40,600 lei, meaning that the total apartment price reaches 440,600 lei.
If you are looking for a modern home that redefines the concept of urban living, you can explore the Evolution apartment offer. Here you will find various options, from studio apartments and 2-room apartments to 3-room, 4-room, or even garden apartments, ideal for families or urban nature lovers.
🏷️ Tips for reducing costs and avoiding surprises
Request detailed offers from several notaries – Ask for written estimates from different notary offices. Compare both the fees and the included services (consultancy, additional fees, speed). This way you can choose the solution that offers the best value for money.
Check eligibility for the reduced VAT rate – Inform yourself thoroughly about the criteria for the 9% VAT. A small difference in area or price can make the apartment eligible or not for this reduced rate, which significantly affects the final payment amount.
Allocate a reserve budget of 5-10% for unforeseen expenses – No matter how well the process is planned, additional costs may arise (urgent fees, translations, technical assessments). Make sure you have this reserve to avoid financial stress at the last moment.
Understanding taxes when buying an apartment is important for proper financial planning. Make sure you check eligibility for reduced VAT, compare notary offers, and negotiate costs with the seller.
