The 5% VAT could also apply to more expensive homes

In order to enter into force, the draft must be promulgated as law by the President and then published in the Official Gazette.

The threshold to which the 5% VAT is applied would increase from 450,000 lei, as it is at present, to the equivalent in lei of the amount of 140,000 euros. This increase in would mean a significant reduction in the price of the purchase of a home.

The reduced VAT rate is an exception to the standard rate of this tax (19%) and applies to homes that, at the time of sale, can be inhabited as such and have a usable area of up to 120 m2, excluding household annexes.