Emergency Ordinance 7/2026 amends local taxes for non-residential buildings and agricultural lands

By means of the emergency ordinance for amending and supplementing certain normative acts, as well as for adopting measures to increase the financial capacity of administrative-territorial units, published in Official Gazette no. 146 of February 25, 2026, substantial amendments to the Fiscal Code regarding local taxes and fees are introduced, with a direct impact on companies’ operational costs.

What does it stipulate?

The main amendment concerns the method of calculating the tax for non-residential buildings owned by legal entities. The calculation basis will no longer be the accounting value of the building, but the market value established through an evaluation report prepared by an ANEVAR authorized valuer. This amendment aligns the tax base with the real value of the asset, which may lead to increases in the tax due, especially for old, fully depreciated buildings, but with a high market value.

A new obligation regarding the periodicity of revaluation is introduced. The evaluation report for non-residential buildings will have to be compulsorily updated once every 3 years, compared to the previous term of 5 years. Failure to comply with this term will result in the application of an increased, punitive tax rate, established by the local council, which can reach up to 5% of the building’s inventory value.

The ordinance grants local councils the authority to increase the tax for agricultural lands located within the built-up area that are not cultivated and for unmaintained lands and buildings. The increase can reach up to 500% compared to the standard tax level. The measure aims to discourage the holding of speculative properties left derelict and to stimulate their efficient use.

It is important to note that the provisions have different effective dates. Although the ordinance applies from the date of publication, the key amendments regarding the calculation of tax on buildings and lands will come into force 30 days after publication, providing a short period for compliance. Other technical provisions have application terms of 5 or 6 months, allowing for gradual adaptation.

To whom does it apply?

The measures apply to all legal entities, regardless of their form (LLC, SA, etc.), that own non-residential buildings (offices, commercial spaces, industrial halls, warehouses) or lands located on the territory of Romania. Companies with extensive real estate portfolios are specifically targeted, such as real estate developers, investment funds, retail chains, logistics operators, and manufacturing companies.

What should you do?

• Evaluate your real estate portfolio immediately to identify all non-residential buildings and lands affected by the new taxation rules.
• Order ANEVAR evaluation reports for all non-residential buildings, to establish the new tax base and to avoid punitive rates.
• Budget for additional costs generated by the potential increase in local taxes and the need to update evaluation reports every 3 years.
• Check the condition of all owned lands, especially those within the built-up area, and ensure they are properly maintained to avoid over-taxation of up to 500%.

Source: Official Gazette, Part I, no. 146 of February 25, 2026.

Note: This material is strictly for informational purposes and does not constitute legal, tax, or business advice. As the interpretation and application of legal provisions may vary significantly depending on the specific circumstances of each entity, we recommend seeking specialized legal assistance before adopting any operational decisions based on these amendments.