Price shock! Pensioner tax, VAT and excise duty increase

A number of important tax measures have been introduced in Romania since August 1st, which will affect both citizens and companies. Among the main changes are the increase in VAT, the increase in excise duties and the introduction of a new tax for pensioners with high incomes. These measures are part of the Law on Certain Fiscal and Budgetary Measures to Ensure the Financial Sustainability of the Country, published in the State Gazette, IPN reports.

One of the most important changes is the introduction of two differentiated VAT rates: 21% for the standard rate and 11% for certain goods and services, such as food, non-alcoholic beverages, medicines and medical devices. At the same time, some products and services that previously benefited from a reduced VAT, such as new homes and photovoltaic panels, will now be taxed at the standard rate of 21%.

At the same time, pensioners with monthly pensions above 3,000 Romanian lei will be required to pay a 10% health insurance contribution (ZOV), which applies only to the amount exceeding this threshold. This change is significant, as until now pensioners were exempt from paying ZOV.

Excise duties on tobacco products, alcohol and fuel will increase by 10%, and gambling will be taxed progressively, with a rate of up to 40% for winnings above 66,750 Romanian lei. Also, from 1 January 2026 the dividend tax will increase from 10% to 16%.

In the field of transport, the government in Bucharest will increase vignette fees, which will reach 50 euros per year for category A cars. At the same time, banks will pay an additional turnover tax, which will double from 2% to 4%, starting from July this year.

The real estate market will be affected, as the reduced VAT of 9% for new homes will be replaced by the standard rate of 21%. This change could lead to a price increase of 10,000-15,000 euros. However, there will be a transition period for those who sign a preliminary contract and pay an advance of at least 20% by August 1.