ANAF will soon start sending notifications for the payment of a new tax obligation. The “luxury tax” legislation was adopted last year and is valid starting this year.
ANAF will start sending payment notifications for “luxury tax”
Romanians who own real estate or luxury cars are preparing to face a new tax obligation. ANAF starts sending out “luxury tax” notices. According to official information, people with properties valued at over half a million euros will receive notifications from the Tax Office, containing the details necessary to pay this special tax.
According to the regulations, Romanians who own homes worth more than 500,000 euros are obliged to pay a tax of 0.3% of the amount that exceeds this threshold. The same tax applies to those who own cars with a value of over 75,000 euros.
Thus, according to the legal provisions, the special tax will target houses and cars with a high value, namely:
- natural persons who, as of December 31 of the previous fiscal year, own residential buildings in ownership or joint ownership in Romania, with a taxable value exceeding 2,500,000 lei (~500,000 euros);
- natural and legal persons who own cars registered or registered in Romania, with an individual purchase value exceeding 375,000 lei (~75,000 euros).
The payment deadline is April 30 for real estate and December 31 for cars
It is important to emphasize that the “luxury tax” must be paid for the entire tax year, and taxpayers are responsible for calculating, declaring and paying it to ANAF up to and including April 30, for properties, and up to 31 December inclusive, for cars, in each relevant fiscal year.
A peculiarity of the tax applicable to cars is that it is due for a period of five years, starting from the date of delivery-acceptance of the vehicle. This rule comes to implement a temporal correction, taking into account the duration of use and depreciation of the car.
As for real estate, the situation is less clear. It remains to be seen how the special tax will be declared if the buildings are owned in share. Specifically, it is uncertain whether the filing of the special tax return by a single co-owner is sufficient, or whether each co-owner will have to declare the special tax for his share of the property.
In this last case, the reporting obligation can be influenced by the percentage of share owned by each co-owner, according to an analysis by EY Romania.
