The end of 2020 brings amendments and additions to Law 227/2015 (through Law no. 296/2020) among which we mention:

In the case of INDIVIDUALS who own buildings with mixed destination: if the owner of the property has the company headquarters at his home, but does not deduct his utilities (they are paid by the owner as a natural person) – it is NO longer necessary to prepare an evaluation report, because the calculation of the building tax will be done by the local authorities.

It was still necessary to prepare an evaluation report if the utilities are paid by the legal entity (these expenses are deducted by the company).

An important change is that individuals who own mixed-use buildings on December 31, 2020 are required to submit a declaration on their own responsibility, by March 15, 2021 inclusive, regarding the area used for non-residential purposes (the exception is those who declared the areas used for non-residential purposes by December 31, 2020 in accordance with the ITL 001-2016 model).

Also regarding mixed-use buildings, when the owner does not declare to the tax authorities the area used for non-residential purposes, the tax is calculated by applying the rate of 0.3% to the taxable value determined by the local authority according to the calculation method for residential real estate owned by individuals (supplement to art. 459, paragraph 3).‍

For building owners LEGAL entities, the news is that the deadline for submitting a declaration regarding the taxable value is being changed, in order to maintain a reduced tax rate, from 3 years to 5 years, but this change is valid starting with fiscal year 2022.

For 2021, in order to avoid an increase in the tax rate, companies that carried out the last evaluation in 2018 must request a new evaluation report and submit the declaration regarding the new taxable value by 31.03.2021.

Starting in 2022, companies that completed their last assessment in 2019 may decide to postpone the assessment until 2024.

Also, individuals who own buildings for non-residential use must submit in the first quarter of 2021 the declaration regarding the updated taxable value based on an evaluation report, as the 5-year period provided by law expires.