Finance minister Nazare keeps new 2027 taxes open but rules out market-value property tax

Taxes stay open for 2027

Finance Minister Alexandru Nazare told Digi24 on 25 October 2026 that he does not want new taxes or duties in 2027, but he would not rule them out either. He argued that any new spending programme that is not budgeted needs an identified source of funding. The ministry is reviewing proposals from budget credit holders, both for new programmes and for measures to cut waste, and will fold them into budget options for the government. The final political decision rests with the government and parliament, he said.

Nazare linked the question to the rating agencies. He said Romania must present a credible budget before its first reviews in early 2027, which he listed as Fitch in January, Moody's in February and S&P in March. Without that, he warned, a downgrade could follow and the country could lose its investment-grade rating. He also said he would not pre-empt a decision until all ministers had submitted their 2027 budget projections.

Interest bill climbs

Nazare said Romania already pays more than 60 billion lei in interest this year and will probably pay more than 70 billion lei in 2027. He tied slippage on announced fiscal targets to higher borrowing costs. He said the country cannot afford to present a budget that lacks credibility in front of the rating agencies.

No market-value property tax in 2027

Nazare said there is no plan to apply property taxation at market value in 2027. He said he hears in public that this danger exists, but he has stated publicly that it will not be applied. He said the rule was adopted through an ordinance in 2022, and that the related milestone in Romania's recovery plan was removed after talks with the European Commission, so that funds would not be lost at year end. He also said property tax has historically been adjusted for inflation each year.

The PSD had already announced on 23 October that it does not back the market-value increase planned for 1 January 2027, which it said could raise property taxes up to 27 times above what is paid today. The party dated the decision to 2021 and attributed it to the PNL-USR government, which it said adopted it without prior consultation of parliament.

Pension indexation depends on the data

Asked whether pensions can be indexed in 2027, Nazare said he wants it, but that the government will decide once the budget figures are in.

“We will take this decision once we have all the budget data entered into the system.”

Nazare said earlier pension increases of 40% had caused a budget imbalance that turned into higher inflation, which hit the most vulnerable hardest. Asked whether an increase above 5% from 1 January 2027 was possible, he said the question would have to be settled once the numbers were on the table.

“This will have to be decided when we have the figures on the table.”

Labour Minister Florin Manole (PSD) has insisted that pensions must be indexed while Romania respects its deficit target. According to Manole, the rate will depend on National Institute of Statistics data, economic forecasts and budget resources, and will be decided with the Finance Ministry and the prime minister. He said the lack of indexation over the past two years cut pensioners' purchasing power and called it an injustice.