What changed in 2024 about rental income. An accountant explains what you pay to the state if you rent a home

In Romania, the income obtained from the rental of properties is subject to taxation, and a part of these expenses reaches the state in the form of income tax. Persons who obtain income from the rental of properties are required to declare this income and pay the appropriate tax to the tax authorities. The year 2024 came with important changes, in this article you will find out what you pay to the state if you rent an apartment or a house, after the changes in 2024.

Invited to the iThink show from Antena 3 CNN, Cosmin Dumitrașcu, accounting expert, explained what has changed in 2024 regarding the earnings from rents and what are the fees and taxes that must be paid in their case.

“In the situation in which we were renting, last year it was as follows. In 2023, you could opt for the real system and, based on the receipts, or the invoices, or the payments you were recording, you could optimize your taxation. In other words, to reduce your expenses.

The new tax system is coming which says as follows. That we have to give up this applicability, this tax system and offer the environment a flat rate of 20%. What does flat rate mean? It means that wear and tear on the house that each of us has.

Until December 2022 there was a flat rate of 40%. In other words, the tax was actually 6%. Now, the flat rate being 20%, the tax in reality is 8%”, stated Cosmin Dumitrascu.

Both the company and the individual pay

“What happens in the situation in which we are dealing with this tax withholding of companies, which are further obliged to give to the state budget? The companies withhold the tax, that of 8%, pass it on to the state budget through a specific declaration and further, in the situation where the owner has exceeded the income of 6, 12 or 24 salaries, he must submit the single declaration through which pays health further to the state budget. So once the company pays and on the other hand the individual pays”, explains the accountant.

“In the situation where the rental contract is strictly between a natural person and a natural person, then all that remains is to submit the single declaration declaring the tax and the health contribution. Anyway, really, all in all, he still gets withheld, he still pays. However, in the situation where we are discussing a company, it withholds the tax and passes it on to ANAF, to the Public Finance Administration, in the idea that it benefits from this money earlier, through the single declaration, considering that the deadline is May 25, next year, the owner pays the tax only when it is due at that time”Cosmin Dumitrașcu also said exclusively in the iThink show.