Romanian real estate:new tax starting 2008

I forgot to mention this in my last article about Romania.

Starting 2008 from all the real estate transactions conducted between established companies 19% V.A.T will be deducted, payable to the State.

This is going to directly affect a wide range of real estate buyers, from young to old and from company to ordinary citizen.

That means the real estate developers are not going to lose that money, instead they will increase the price of the property with 19%, so the buyer will support the extra costs.

Oops!  The Romanian government has done it again.

We shall wait and see if the new law is here to stay.