9% reduced VAT rate for housing, if the value does not exceed 600,000 lei

According to the draft, until August 1, 2026, a reduced VAT rate of 9% will apply to the delivery of housing units with a usable area of no more than 120 sqm (excluding ancillary buildings), whose total value, including the land on which they are built, does not exceed 600,000 lei (excluding VAT). This applies to purchases made by individuals, either individually or jointly with other individuals, if, by August 1, 2025, they have concluded legal agreements between living persons that involve an advance payment for the purchase of such housing.

„An individual who has not purchased, starting January 1, 2023, a housing unit benefiting from the reduced VAT rate, other than those provided under Article III, paragraph (1), letter a) of Government Ordinance no. 16/2022 on the amendment and completion of Law no. 227/2015 on the Fiscal Code, the repeal of certain normative acts, and other financial-fiscal measures, approved with amendments and additions by Law no. 370/2022, as subsequently amended, may purchase, starting August 1, 2025, either individually or jointly with other individuals, a single housing unit with the reduced VAT rate of 9%, in accordance with paragraph (1),” the draft states.

The 9% reduced VAT rate for these transactions applies only to housing units that, at the time of delivery, meet the legal conditions to be inhabited as such, according to the laws in force on the date of the legal agreements involving advance payment. The usable floor area of the housing unit is defined by Housing Law no. 114/1996, republished and subsequently amended. Ancillary buildings are defined by Law no. 50/1991 on the authorization of construction works, republished with amendments.

The “Register of Housing Purchases with Reduced VAT” will also include information from legal agreements between living persons involving the transfer of ownership rights for housing units under paragraph (1), authenticated no later than July 31, 2026.

Until August 1, 2026, the 9% reduced VAT rate will also apply to the delivery of buildings, including the land on which they are built, to municipalities, for allocation under subsidized rent schemes to individuals or families whose economic situation does not allow them to own or rent housing on the open market, provided that, by August 1, 2025, legal agreements involving advance payment have been concluded for their acquisition.