Timișoara proposes flat 2027 taxes as Bucharest caps local fees at 2026 levels

Timișoara proposes a freeze

Timișoara's city hall wants to keep 2027 taxes and fees on residential homes and citizens' vehicles at their current level, according to a press release issued on Wednesday, 4 November. The sums will not be indexed to inflation. The city hall also proposes scrapping the additional quota on non-residential buildings owned by individuals, a surcharge introduced in 2019, and it said in its communiqué:

“The municipality maintains its 2024 commitment to support the business environment and protect jobs through the gradual elimination of the additional quota for non-residential buildings.”

The quota was cut from 50% in 2024 to 31% in 2025 and 16% in 2026, and the communiqué says it will be removed completely in 2027, leaving a final rate of 1.3% of the building's taxable value.

202450%

202531%

202616%

2024

50 %

2025

31 %

2026

16 %

Data from the article text

The city hall also plans to keep exemptions for nonprofit social service providers and owners of historic buildings under renovation. Owners who pay the building, land or vehicle tax for the whole of 2027 in advance, by 31 March 2027, would receive a 10% discount.

Bucharest caps its local taxes

Bucharest's city hall said on its Facebook page on Wednesday that local taxes and fees, including the residential parking charge, will stay unchanged in 2027. Mayor General Ciprian Ciucu decided to cap them at their 2026 level, and the tourism promotion tax remains 10 lei per night. The draft is in public debate and goes to a General Council vote on 12 November, and the city hall's statement said:

“Mayor General Ciprian Ciucu decided to cap them at the 2026 level.”

Under the draft, residential buildings and their annexes owned by individuals stay at a 0.1% tax rate, non-residential buildings owned by individuals stay at 0.2%, and those owned or used by legal entities pay 1.5%. Hybrid vehicles emitting 50 grams of CO2 per kilometre or less keep a 30% reduction on the vehicle tax. The residential parking fee stays zone-based, at 796 lei a year in zone A, 663 in zone B, 530 in zone C and 397 in zone D, payable in two equal instalments by 31 March and 30 September.

Zone A796

Zone B663

Zone C530

Zone D397

Zone A

796 lei per year

Zone B

663 lei per year

Zone C

530 lei per year

Zone D

397 lei per year

Data from the article text

Construction charges and the property reform

Libertatea notes a 79.5% increase in local taxes in the period before the draft, and gives the example of a three-room apartment in Bucharest whose house tax went from 198 lei to 355 lei. New charges for 2027 come from the Urban Planning Code. Permits that regularise construction carried out without authorisation attract 5% of the authorised value for residential buildings and annexes and 10% for other constructions, with 0.25% and 0.50% under the simplified procedure. Finance Minister Alexandru Nazare said the move to taxing property at market value remains in the plan but will not apply in 2027, as the government postpones it until fiscal consolidation is complete.

Next steps

The Bucharest draft goes to the General Council on 12 November, and tax paid in full by 31 March 2027 qualifies for the 10% advance-payment discount.

Timișoara's measures are still a proposal from the city hall, and the sources give no vote date for them. The figures in this report come from draft texts and proposals rather than adopted decisions.