Tax Changes 2026: Major Impact on Pensioners and Homeowners

From 2026, Romania will implement one of the most sweeping fiscal reforms of the past decade, with a direct impact on seniors and pensioners who own property. The changes target local taxes in particular, with significant increases for homeowners and landowners — a category that encompasses the majority of older people in the country.

For pensioners, one of the most important changes concerns property tax on buildings. The taxable value of homes will rise in both urban and rural areas, and a measure with particularly far-reaching consequences is the abolition of the reductions previously applied to homes built before 1990. Given that many seniors live in properties dating from that era, annual tax bills are set to increase substantially.

Additional tax on high-value properties

One new measure that may affect pensioners with properties in the city-centre areas of major cities is the introduction of a supplementary 0.9% tax on buildings valued at over 2.5 million RON. This levy applies to the amount exceeding that threshold and could pose a genuine financial challenge for older people who have inherited or acquired homes in premium locations.

Land tax will also be revised, with higher taxable values applied to all land within built-up areas regardless of land-use category. At the same time, previously available tax reliefs are being scaled back, which will affect the budgets of organisations providing social care services for seniors.

Changes for those with additional income

Pensioners who earn income from self-employed activities — such as operating as a sole trader (PFA) or practising a liberal profession after retirement — will be affected by the broadened calculation base for CASS (the national health insurance contribution). This could reach the equivalent of 72 gross minimum monthly wages per year, considerably increasing the contribution owed by those on higher incomes.

For seniors who rent out rooms or apartments through platforms such as Airbnb or Booking, the taxation system is being simplified, but may become more costly. From 2026, net income will be calculated by deducting a flat-rate allowance of 30% from gross annual income, replacing the actual-cost and standard-income methods used previously.

Impact on vehicles and investments

The fiscal changes also extend to motor vehicles, including electric cars, which will be subject to an annual charge of 40 RON. A supplementary 0.9% tax is being introduced for vehicles valued at over 375,000 RON — a measure that may affect seniors who own luxury cars. Additionally, gains from cryptocurrency investments will be taxed at 16%, a relevant change for older people who have diversified their investment portfolios.

These structural changes to Romania's tax system call for careful financial planning on the part of seniors and their families. The rise in the minimum wage to 4,325 RON will also indirectly affect the cost of home care and residential care home services, by pushing up labour costs across the sector.

To minimise the financial impact, seniors are advised to assess their property assets well in advance and to seek specialist tax advice, given the complexity of the new regulations coming into force in 2026.