Romanian Govt To Move Solidarity Tax On Multiple Homes From Fiscal Code To Separate Law

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"We discussed Monday the draft ordinance amending the Fiscal Code and decided to eliminate the article concerning the tax on buildings, leaving it to the Finance Ministry to regulate the procedure through a draft law," Agriculture Minister Mihail Dumitru told MEDIAFAX.

People close to the matter said the Government decided to eliminate the article implementing the solidarity tax on multiple owned homes because it was considered "challengeable."

The draft emergency ordinance amending the Fiscal Code, approved last week by the Government, stipulated that owners of two or more houses, which are not rented out to third parties, would have to pay 50% of the yearly tax on their second home to the local budget. Owners of three homes would have to pay 100% of the tax on the third building, while those who own four residences would pay 200% of the tax on the fourth home.

The Government argued that the tax is justified by the current economic and financial context, which requires the increase of local budgets.

The currently enforced Fiscal Code says individuals who own two homes pay 15% more on the yearly house tax, those who own three pay 50% more, owners of four homes pay 75% more, while owners of five or more homes pay 100%.