How inheritance tax works in Romania
Romania does not operate a broad standalone inheritance or estate tax on the value of a deceased person's worldwide estate. The key Romanian tax is linked to the transfer of real estate and the timing of the succession procedure.
No transfer tax is due on inherited real estate when the succession is debated and completed within two years from the death. If the succession is completed after two years, the heirs generally owe 1% calculated on the value of the inherited estate under the Fiscal Code rule.
A lifetime transfer of Romanian real estate is generally subject to a 3% tax on the transfer value after the RON 450,000 non-taxable amount, with statutory exemptions including certain donations between spouses and close relatives. Cash, securities, business interests and foreign property need separate analysis.
Tax rates at a glance
- Inherited real estate within 2 years
- 0%Timely succession
- Inherited real estate after 2 years
- 1%
- Inter vivos real-estate transfer
- 3%
- Broad inheritance or estate tax
- 0%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Family succession planningProperty ownersInternational familiesFounders and shareholdersEstate administrators
Watch out for
- The two-year exemption is a timing rule for the succession procedure, not a general promise that every inherited asset is tax-free. The estate may include property, shares, bank assets and foreign assets with different legal and tax treatment.
- The 1% late-succession rule is connected to the transfer of the inherited estate and should be checked with the notary handling the succession, especially where the estate includes several asset classes.
- Romanian real-estate donations and sales use a separate transfer-tax regime. The close-family and spouse exemptions need to be tested against the exact relationship and transaction.
- Cross-border estates can trigger tax, reporting or probate obligations in the country where the deceased, heir or asset is located. Romanian treaty coverage does not replace estate-law advice.
Frequently asked questions
Does Romania have inheritance tax?
Romania has no broad standalone inheritance tax. A 1% tax can apply when a succession involving inherited real estate is completed after two years; completion within two years generally avoids that transfer tax.
Is inherited property tax-free in Romania?
Inherited real estate can avoid the transfer tax when the succession is completed within two years of death. Annual local property tax and future sale or transfer taxes can still apply.
Are gifts taxed in Romania?
There is no broad gift tax, but lifetime transfers of Romanian real estate can trigger the separate transfer tax. Gifts between spouses and certain close relatives have statutory exemptions that must be checked.