On April 4, 2025, Government Emergency Ordinance (GEO) no. 21/2025 was published in the Official Gazette (Part I) no. 300. This ordinance amends and supplements Title X of Law no. 227/2015 regarding the Fiscal Code and also modifies other legal provisions.
The ordinance brings significant changes to the tax regime applicable to special constructions, often informally referred to as the “pillar tax”.
Reduced Tax Rates
The main change concerns tax rate reductions:
- From 1% to 0.5% for special constructions owned privately;
- From 0.5% to 0.25% for special constructions owned by the state or local authorities and granted by concession or management contracts.
How the Tax Is Calculated
The annual tax on constructions is determined as follows:
- 0.5% of the net book value for constructions not subject to building tax under Title IX;
- 0.25% for constructions held under concession, lease, or management by private entities, from public or private state property, also exempt from building tax.
The net value refers to the book value shown in the accounting records, minus accumulated depreciation.
Investments in leased or managed constructions that do not result in completed structures by December 31 of the previous year are not considered taxable constructions.
Tax Exemptions
According to Article 456 of the Fiscal Code, no construction tax is due for:
- Public buildings not used for economic or leisure purposes;
- Foundations, places of worship, schools, hospitals, historical monuments, defense-related buildings, agricultural structures, etc.
A total of 25 categories of exempted constructions are listed.
Special Provisions
- For dissolved taxpayers, the tax is recalculated proportionally with their active period within the year.
- Newly established taxpayers owe construction tax starting from the year of incorporation, calculated proportionally from the date of registration.
- The deadline to declare and pay is January 25 of the year following incorporation.
Early Payment Incentive
Taxpayers who declare and pay the full annual construction tax by May 25 are eligible for a 10% bonus on the tax amount.