Housing VAT 2025: what you need to know about VAT rates for purchasing a home

The legislation on housing VAT 2025 brings significant changes, impacting both buyers and real estate developers. VAT rates directly influence the final cost of homes, which is why it is essential for those interested in purchasing an apartment or house to be well informed.

To make the best decision, prospective buyers must fully understand how VAT on housing will apply in 2025, what conditions are imposed by legislation, and what opportunities may arise depending on the type of property purchased. It is also important to analyze the impact on the total budget and to be informed about any potential tax facilities or changes that could influence the final price.

Here you can see the apartments in GREENFIELD Băneasa that are subject to 9% VAT and 19% – See the apartments

What are the VAT rates for housing in 2025?

In Romania, VAT on housing is applied based on the value of the property and the conditions imposed by law. In 2025, two main rates apply:

• 9% VAT – for housing that meets certain conditions, such as usable area and a value not exceeding a ceiling established by law. This rate applies only if the beneficiary has not previously purchased housing with reduced VAT.
• 19% VAT – for homes that do not meet the requirements for the reduced rate of 9% or for individuals who have previously benefited from a purchase subject to the reduced VAT rate.

Conditions for Applying the Reduced VAT Rate of 9%

To qualify for the reduced VAT rate of 9%, the following conditions must be met:

• The residence must be new and purchased by an individual.
• The usable area of the property shall not exceed 120 sqm.
• The total price of the dwelling shall not exceed the cap established by law, specifically 600,000 lei.
• The buyer must not have previously purchased a home subject to the reduced VAT rate of 5% or 9%.

In GREENFIELD Băneasa, we offer apartments this fits these criteria, so that our clients can benefit from the advantages of reduced VAT.

Conditions for Applying the 19% VAT Rate

If the residence does not meet the criteria required for the application of the reduced VAT rate of 9%, then the standard VAT rate of 19% automatically applies. This occurs in the following situations:

• The residence has a usable area of over 120 sqm.
• The property's value exceeds the ceiling set by law for reduced VAT.
• The buyer is a legal entity.
• The buyer has already benefited from a reduced VAT home purchase and no longer meets the criteria established by law.

Even though the 19% VAT rate applies to certain homes in GREENFIELD Băneasa, benefits offered by the community, energy efficiency, facilities and the quality of construction make the investment advantageous in the long term.

Advantages and disadvantages of applying different VAT rates

The application of the reduced VAT rate of 9% is an advantage for buyers, keeping prices more affordable compared to the standard VAT rate of 19%. However, the restrictions imposed on the reduced VAT rate may influence purchasing decisions. At GREENFIELD Băneasa, we emphasize transparency and personalized advice so that every customer can make an informed decision.

Buyer's Tips: How to Take Advantage of Reduced Housing VAT 2025

If you're looking to buy an apartment and want to take advantage of the reduced VAT rate of 9%, we recommend:

• Obtain information from official sources about the cap imposed on reduced VAT.
• Check whether the desired home meets the conditions for applying the 9% VAT rate.
• Plan your purchase so that you comply with the new tax regulations.
• Discuss with the sales team to find the ideal solution for your needs. A consultant is calling

The VAT applied to housing in 2025 can significantly influence purchasing decisions. At GREENFIELD Băneasa, we ensure that we offer our clients quality housing, energy efficient and at competitive prices. If you want to take advantage of the reduced VAT rate of 9%, our team is here to guide you step by step through the purchasing process.