Taxes on Romanian Property for Non-Resident Owners: Rent, Resale and Company Ownership in 2026

The figures a Gulf investor needs before choosing between personal and corporate ownership

Investor Guide · 2026-09-04 · 7 min citire · NOR Luxury Agency

Taxes on Romanian Property for Non-Resident Owners: Rent, Resale and Company Ownership in 2026

Short answer: Romania taxes property lightly by European standards. An individual, resident or not, pays 10% on rental income after a flat 20% expense deduction, which is 8% of gross rent. On resale, an individual pays 1% of the price if the property was held for more than three years, or 3% if held for three years or less, with no capital gains calculation. A Romanian company pays 16% corporate income tax on rental profit and on gains, and distributes dividends subject to a withholding tax that the Romania-UAE double taxation treaty caps at 3%, with an exemption for investors owned by the UAE government. There is no transfer tax on purchase. The figures below are those in force in 2026 and should be confirmed with a tax adviser for a specific structure.

Ownership as an individual

Rental income. Taxed at 10% on net income, where net income is gross rent minus a flat 20% deduction. Non-residents pay the same rate and must register with the Romanian tax authority. Rental income may also attract the health insurance contribution above certain thresholds.

Resale. Individuals pay a tax on the transfer of property calculated on the sale price, not on the gain: 1% for properties held more than three years, 3% for properties held three years or less. The notary withholds it at closing.

Annual building tax. Paid to the local council, between 0.08% and 0.2% of the taxable value for residential buildings. Historic monuments with restored facades may be exempt under conditions.

VAT. Not applicable to a private individual buying or selling an older building. A new building or building land carries 21% VAT.

Ownership through a Romanian company

Corporate income tax. 16% on profit, which includes rental income after deductible expenses (depreciation, interest, management, repairs) and gains on sale. Small companies may qualify for a simplified turnover-based regime, under conditions that change frequently and must be checked for the year of purchase.

Dividends. Distributions to a foreign shareholder are subject to Romanian withholding tax. The double taxation treaty between Romania and the United Arab Emirates, signed in 1993, caps withholding on dividends at 3% where the recipient is the beneficial owner, and exempts dividends paid to the government of the other state or to a company in which that government holds at least 25% of the capital. For sovereign and government-linked investors this is a material point, and the equivalent treaties with Saudi Arabia and Qatar should be checked for their own terms.

Sale of the company instead of the property. Selling the shares of the SRL rather than the building is common in institutional transactions and has its own tax treatment, to be structured with the adviser at the time of purchase.

Costs at purchase

No transfer tax.
Notary fees on a national tariff, degressive with price.
Land book registration fee.
Legal and technical due diligence.
Agency commission, 3% at NOR for buyer representation.

Individual or company: how investors usually decide

An apartment or penthouse held for personal use or for long-term rent is often held personally, for simplicity and the 1% exit tax after three years. A house, a plot, a building or a portfolio is held through a company, both because a non-EU buyer cannot hold land personally and because expenses become deductible and the asset can be sold as shares. Institutional buyers use a Romanian company per asset or per portfolio, owned by their fund vehicle.

Frequently asked questions

Do I pay tax in Romania and in the UAE?

Romania taxes the income at source. The treaty prevents double taxation; the UAE has no personal income tax, so for an individual the Romanian tax is the final one.

Is there an annual wealth tax on property?

No. Only the local building tax.

Does a non-resident need a Romanian tax number?

Yes, to declare rental income and to be identified at the notary.

Can rental income be received in a UAE account?

Yes, though most owners use a Romanian account for payments of local taxes and expenses.

This guide is general information as of September 2026 and does not constitute legal or tax advice. NOR Luxury Agency coordinates with its partner law firm and tax adviser for every transaction it represents.