Amendments to the decree on raising taxes, including property tax, can be made in the parliament. Therefore, it is possible that from January 1, 2023, the taxable value will increase by approximately 50%.

Adrian Vascu, a senior partner at Veridio and former president of ANEVAR, provided a brief analysis of the proposal on his website.

Example 1: The apartment is located in Bucharest, floor area A, floor 3, year of construction 1950, area 99.71 square meters.

The new taxable value will result in approx. 307,317 lei, which, if the tax rate is maintained at 0.1%, will result in the amount of tax next year being 307 lei compared to 204 lei this year.

example 2: The house, located in Cluj-Napoca, with an area of ​​295 square meters and a plot of land of 800 square meters, zone C, taxable value as of December 31, 2021 – 479,000 lei and an annual tax of 958 lei.

The new taxable value will result in approx. 718,500 lei, which, if the tax rate is maintained at 0.2%, will result in a tax amount of 1,437 lei next year compared to 958 lei this year.

Adrian Vascu also says that if the level of tax rates is changed, that is, reduced, then perhaps the tax will not increase as much as the taxable value. If a tax rate of 0.1% is adopted in Cluj-Napoca, it is even possible that the tax will decrease to 718 lei.

And where the tax rates were not at the maximum level (for example, Timisoara) and it was decided to increase them, perhaps the tax will increase by more than 50%.

What can happen in the area of ​​non-residential development

According to Vasku, the taxable value will apply to the building and the land connected to it, and not to buildings and land separately, as was done until now.

In this sense, taxpayers who have passed 5 years since the last revaluation will, at the beginning of 2023, require a valuation report, in which the authorized valuers will also include the value of the land associated with the building. The GEV 500 in its current form will no longer apply, but the existing valuation standards relating to the valuation of immovable property and possibly apportionment of value to make it easier for local authorities when there are multiple buildings.

As an example, he cited 20 commercial premises on the first floor of the quarter, which in 2017 had a taxable value of approximately 7,450 thousand lei, and according to the new proposed system, including the contribution of the land value, the taxable value could be approximately . 15,543 thousand lei. The resulting increase is a doubling of the taxable value.

If the tax rates remain the same, then this taxpayer’s tax will be doubled. Of course, this calculation cannot be extrapolated to all non-residential real estate, but I believe that the threshold to the upper level could be this doubling of the taxable value.

And in this case, tax rates in the range of 0.2-1.3% chosen by local councils will have a decisive influence on the tax

Those taxpayers (individuals and legal entities who made the last calculation at the beginning of 2018) are obliged to make the calculation at the beginning of the next year.

For others, taxable values ​​valid as of the beginning of 2022 are used, which are held until the 5-year maturity.