The announced reduction for VAT for houses, from 19 to 5%, has just been postponed in Romania.
Initially, the Government announced the VAT would be reduced from 19% to 5% starting from January 2021, for houses of up to EUR 140,000. Thus, the house building would have been encouraged and the buyers would have felt the difference in their pockets.
Yet, the Romanian Government decided to postpone the measure until January 2022. The reason for this is, no doubt about it, the high probability for such a measure to diminish the state budgetary revenues.
The VAT for houses remains at 19%, a discouraging value after the potential buyers knew it will be reduced. It is thus expected for the number of the real estate deals to further decrease in 2021.