Romania, among the most favorable EU countries for property taxation; Romanians pay less than €100 annually – more than seven times lower than the EU average

Bucharest, September 2025: Romania stands out in the European fiscal landscape through a significantly lower level of property taxation compared with the European Union average, according to an analysis conducted by the Cushman & Wakefield Echinox real estate consultancy company, based on EUROSTAT data.

This position enriched the attractiveness of the local real estate market and established a favorable taxation framework for owners and investors.

Reduced taxation is also reflected in the macroeconomic indicators, with only 0.5% of Romania’s GDP being generated by real estate asset taxation, compared with the EU average of 1.9% and 3.7% in France, the European leader in this regard. In Poland, the share of property taxes in GDP is 1.4%, while in Hungary it stands at 0.8%.

Romania’s share of GDP from property taxes decreased from 0.9% to 0.5% over the last decade, as the GDP growth rate has been significantly higher than the corresponding one from property taxes.

Additionally, the taxable values have remained relatively constant since 2016 and have not kept up with the real estate assets price surges, thereby diminishing the share of these revenues in GDP.

Property taxes in Romania account for approximately 2.1% of the total fiscal revenues, below the EU average of 4.7%, underscoring the state’s limited reliance on these taxes to finance public budgets. In Greece, this share reaches 7%, in Poland 4.1%, while in France it stands at 8.4%. In Italy, property taxes represent 5.1% of the total fiscal revenues, and in Spain 6.7%.

In absolute figures, the total property tax revenues collected in Romania amounted to €1.8 billion in 2023 (the latest year for which EUROSTAT data is available), substantially below the levels registered in countries such as Poland (€10.7 billion) or Italy (€45.3 billion). In France, revenues from property taxation exceed €100 billion annually, while in Germany they reach €40 billion. In Spain, nearly €38 billion is collected each year from real estate taxation.

In terms of taxes per capita, a Romanian contributes approximately €93 annually in property taxes, compared with the EU average of €710 and €1,550 in France. In Poland, this indicator stands at €300, while an Italian pays more than €760 annually and a Spanish person approximately €750. Moreover, the average contribution of a Hungarian is also higher, as it reaches €163 per year.

Vlad Săftoiu, Head of Research at Cushman & Wakefield Echinox: “Romania’s low level of property taxation represents an important competitive advantage which has significantly supported its real estate market development, while also facilitating the access to residential properties, contributing to Romania’s position as the country with the highest home-ownership rate in the European Union. On the other hand, the relaxed taxation translates into limited funds available for public investment, considering that these taxes are predominantly collected by local authorities.”

Property taxes include taxes imposed on owners of real estate assets – buildings and land – in the form of annual taxes (local taxes on buildings and land) or ad-hoc charges (transfer taxes, inheritance taxes, etc.). The level of these taxes varies significantly among the EU member states, influenced by local fiscal policies and the strategic role these revenues play in national budgets.

In Romania, tax rates applied to buildings -including residential properties – and land are among the lowest in the EU, with a standard rate of approximately 0.1% – 0.3% for residential buildings, depending on their category and location, while for commercial properties the rate varies between 0.5% and 1.5%.