Romania among EU's most property tax-friendly countries

Business Forum
Romania stands out in the European fiscal landscape with property taxation levels significantly lower than the EU average, according to an analysis by Cushman & Wakefield Echinox based on Eurostat data. This position has enhanced the attractiveness of the local real estate market and established a favorable tax framework for owners and investors.

The reduced taxation is reflected in macroeconomic indicators, with only 0.5% of Romania's GDP coming from property taxes, compared to the EU average of 1.9% or France's 3.7%. In Poland, property taxes account for 1.4% of GDP, while in Hungary the figure is 0.8%. Over the last decade in Romania, this share decreased from 0.9% to 0.5%, as GDP growth significantly outpaced property tax revenue growth.

Vlad Saftoiu, Head of Research at Cushman & Wakefield Echinox, said: "Romania's low level of property taxation has represented a real competitive advantage that has supported real estate market development and facilitated population access to housing, contributing to Romania's status as the country with the highest percentage of owner-occupied homes in the European Union. On the other hand, relaxed taxation translates into limited funds available for public investment, considering that these taxes are predominantly collected by local authorities."

Property tax revenues in Romania represent approximately 2.1% of total fiscal revenues, below the EU average of 4.7%. In Greece this share reaches 7%, in Poland 4.1%, while in France it stands at 8.4%. In Italy, property taxes represent 5.1% of total fiscal revenues, and in Spain 6.7%.

In absolute terms, property tax revenues collected in Romania were €1.8 billion in 2023, substantially below levels in countries such as Poland (€10.7 billion) or Italy (€45.3 billion). In France, property taxation revenues exceed €100 billion annually, while in Germany they reach €40 billion, and in Spain nearly €38 billion is collected annually.

In per capita terms, a Romanian contributes approximately €93 annually through property taxes, compared to the EU average of €710 and €1,550 in France. In Poland, this indicator stands at €300, while an Italian pays over €760 annually and a Spanish person over €750. Even in Hungary, the average contribution reaches €163 per year.

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