Starting in 2025, taxpayers who obtain income from the use of assets must pay attention to the new tax regulations imposed by the National Agency for Fiscal Administration (ANAF). These changes target both the tax regime applicable to regular rentals and those for tourism purposes, as well as the obligations to declare and pay income tax and social contributions.

This year’s changes aim to align with new requirements regarding tax transparency, reduce evasion, and clarify the rules for declaring and paying taxes for individuals who earn income from such activities. Therefore, it is essential that property owners who rent buildings or other goods are well informed about these obligations to avoid penalties imposed by tax authorities.

Categories of income from the use of assets

Income from the use of assets is divided into two main categories:

• Regular rentals, which include income obtained from renting and subletting movable and immovable assets (homes, land, garages, means of transport, etc.), as well as leasing agricultural assets. These are frequently used to generate passive income but involve clear tax obligations that must be respected by the owners.

• Tourist rentals, which involve renting rooms located in personally owned homes for periods ranging from 24 hours to a maximum of 30 days. This type of activity is increasingly common, especially in the context of growing online booking platforms. ANAF seeks to regulate this income and ensure it is properly declared, considering the expansion of the short-term rental market.

Establishing, declaring and paying income tax

Rental income is taxed based on flat-rate expense deductions, without the option to choose actual income taxation.

The calculation formula is as follows:

• net income = gross income – (20% flat-rate expenses)
• tax due = 10% × annual net income

For tenants who are individuals or entities not required to keep accounting records, the income beneficiary (the lessor) must calculate, declare, and pay the tax through the Single Declaration, by May 25 of the following year.

If the tenant is a legal entity or an entity required to keep accounting records, it is responsible for withholding at source, declaring, and paying the tax. This aspect is particularly important for taxpayers renting to companies, as the fiscal responsibility may fully fall to the tenant, thus avoiding possible irregularities.

Changes to the Single Declaration in 2025

An important change for 2025 is the elimination of the estimated Single Declaration. This change simplifies the tax reporting process and reduces administrative obligations for taxpayers.

The tax is declared and paid only at the end of the fiscal year, by May 25 of the following year. This measure gives taxpayers more time to accurately calculate and pay their tax obligations, eliminating the need for later corrections.

Rental contracts must be registered with ANAF within 30 days from the date of signing or modification. This requirement is intended to increase transparency and ensure compliance with tax legislation.

There is no longer a need to report estimated income at the beginning of the year, which simplifies procedures for taxpayers. Eliminating this obligation reduces bureaucracy and provides greater flexibility in managing income from the use of assets.

Health insurance contribution (CASS)

Taxpayers who earn income from rentals will owe CASS if their total annual income exceeds the threshold of 24,300 lei (equivalent to 6 gross minimum wages nationwide). The calculation levels are:

• 6 minimum wages for income between 24,300 lei and 48,600 lei
• 12 minimum wages for income between 48,600 lei and 97,200 lei
• 24 minimum wages for income over 97,200 lei

CASS is declared in the year following the income realization through the Single Declaration, submitted by May 25. This means that, depending on the income obtained, taxpayers may be required to pay significant health contributions, even in the absence of other income sources.

Registration of rental contracts

Starting in 2025, taxpayers who earn income from rentals (other than agricultural leases and tourist rentals) must register the contracts with ANAF using form 168. If the asset is jointly owned, the contract must be registered by one of the owners, designated for this purpose. This obligation is intended to provide greater transparency regarding rental income and to prevent tax evasion.

Penalties for failing to declare income

Failure to comply with tax obligations related to the use of assets may result in penalties from ANAF. If income is not declared or the tax is not paid on time, taxpayers may be subject to penalties and late-payment interest. Additionally, failure to register rental contracts may result in further penalties, including retroactive adjustment of taxes due.

How can Cabot Transfer Pricing help?

Navigating tax changes can be complicated, especially in the case of income from the use of assets. Cabot Transfer Pricing offers specialized support for compliance with new regulations, optimizing tax obligations, and avoiding penalties.

Our team of experts helps taxpayers understand tax requirements, correctly complete and submit tax declarations, manage obligations related to rental contract registration, and reduce risks associated with social contributions and taxes.

Contact Cabot Transfer Pricing for personalized consultancy and make sure you’re prepared for the new tax requirements imposed in 2025.