A new law has gone into effect in Romania, requiring owners of expensive homes and cars to pay a luxury tax. The law applies to individuals who own residential properties worth more than 2.5 million leu (€500,000) and cars purchased for more than 375,000 leu (€75,000). Owners are required to submit a declaration to the tax authorities by the end of September for villas and by December for cars.
The luxury tax will be calculated as 0.3% of the difference between the vehicle's value and the tax-exempt threshold. Experts believe that the increase in the luxury tax is conservative and moderate. It remains to be seen how this new law will affect the luxury real estate and automotive markets in Romania.
This law is in contrast to the policy implemented in Ukraine, where luxury vehicles are exempt from luxury tax. In Ukraine, the tax is only imposed on cars valued at more than 2.6 million hryvnia (over $66,000).
It is important to note that this article is a summary and does not constitute financial or legal advice. Readers should consult with professionals for specific guidance regarding their individual situations.
