Law no. 141/2025, published in the Official Gazette on July 25, 2025, introduces a comprehensive package of fiscal and budgetary measures aimed at strengthening Romania’s financial stability. One of the most significant changes concerns the VAT regime applicable to the purchase of residential properties by individuals.
Starting from August 1, 2025, the VAT rate for new housing units with a usable area of up to 120 sqm and a maximum value of RON 600,000 (excluding VAT) will increase from the reduced rate of 9% to the standard rate of 21%.
Transitional period
To mitigate the immediate impact, the law provides a transitional period until July 31, 2026. During this time, individuals who signed a pre-contract and paid an advance before August 1, 2025, may still benefit from the reduced VAT rate of 9%.
Role of notaries and the register of reduced VAT housing purchases
For many years, public notaries have played a central role in ensuring the correct application of the reduced VAT rate, by verifying and completing the “Register of housing purchases with reduced VAT.” This mechanism was essential since each individual could benefit from the reduced VAT only once.
Although the new rules will eventually eliminate the need for this register, notaries’ obligations remain in force during the transitional period, until July 31, 2026. Specifically, notaries must:
- Verify conditions: ensure, by consulting the register, that the buyer has not previously benefited from the reduced VAT.
- Complete the register: record each transaction at the time of authenticating the legal deed.
- Insert statements in documents: confirm in the sale-purchase contract that the verification was performed.
- Specify the VAT rate: clearly indicate the applicable rate, whether VAT is included in or added to the price.
Updating the register
The current register, established by ANAF Order no. 2080/2023, will be updated to reflect these legislative changes. Until the end of the transitional period, notaries will continue to play an important role in monitoring and enforcing the fiscal rules in the real estate sector.