Cazare Pe Termen Scurt Laws in Romania

Cazare Pe Termen Scurt Laws in Romania

Romania

Introduction
Introduction to Cazare Pe Termen Scurt in Romania

Romania’s vibrant tourism scene is increasingly shaped by the rise of short-term rentals, known locally as închirieri pe termen scurt or cazări temporare. Popular destinations like Bucharest, Brasov, and Cluj-Napoca have seen a surge in visitors seeking unique and flexible accommodation options that go beyond traditional hotels. In 2023, short-term rentals significantly contributed to the local economy, with the Romanian government generating substantial income from this growing sector. Platforms such as Airbnb and Booking.com dominate the market, offering a wide range of properties that cater to diverse traveler needs. The impact of this trend is evident in the boost to local businesses and the increased visibility of Romania as a top European destination.

Overview

Romania’s vibrant tourism scene is increasingly shaped by the rise of short-term rentals, known locally as închirieri pe termen scurt or cazări temporare. Popular destinations like Bucharest, Brasov, and Cluj-Napoca have seen a surge in visitors seeking unique and flexible accommodation options that go beyond traditional hotels. In 2023, short-term rentals significantly contributed to the local economy, with the Romanian government generating substantial income from this growing sector. Platforms such as Airbnb and Booking.com dominate the market, offering a wide range of properties that cater to diverse traveler needs. The impact of this trend is evident in the boost to local businesses and the increased visibility of Romania as a top European destination.

Property
Overview

Romania has national associations supporting property owners, including short-term rental operators: AGPI (Association for Rental Properties in Romania) focuses on networking, legislative advocacy, and improving rental business efficiency. RABO (Romanian Association of Building Owners) unites property investors to promote a sound legislative framework for real estate investment. Both are based in Bucharest.

Property
Interested in learning more about this country? Please complete the form below.

Lodge Compliance may contact me about products and news. I understand I can change my preferences at any time per Lodge Compliance’s Privacy Policy.

Awesome! Your submission has been received!
Oops! Something went wrong while submitting the form.
short term rentals
What is Cazare Pe Termen Scurt in Romania?
What are short Term Rentals in the Country?

In Romania, short-term rentals are commonly referred to as "închiriere pe termen scurt" or "cazare turistică," which translates to "short-term lease" and "tourist accommodation" respectively. On major booking platforms like Airbnb, Booking.com, and Vrbo, STRs are listed under familiar English terms such as "vacation rentals," "holiday homes," and "tourist accommodation." In Romania, STRs are defined as residential properties rented out for a duration that typically ranges from a few days to a few weeks, although regulations on the exact duration vary. STRs include apartments, houses, and other residential spaces used exclusively for tourism. Such rentals are differentiated from hotels and other commercial lodgings by their flexible lease terms and generally lower costs.

Is Subletting Legal?
Is Subletting Legal in Romania?

National law does not explicitly prohibit subletting, but it does regulate the terms and conditions under which it can be done. Typically, a tenant can sublet their rented property only if they have explicit permission from their landlord, usually outlined in the lease agreement. Without these permissions, subletting for short-term rental purposes could lead to eviction or legal action. In buildings consisting of multiple apartments, any change in the intended use of the dwellings must be approved by the neighbouring owners who are directly affected by the change.

National Association for STR Owners
What is the maximum length of stay in Romania?
What is the maximum length of stay?

There isn't a nationwide maximum length of stay for short-term rentals in Romania. Hosts typically set the lease duration for renting out their apartments to guests. However, some cases may require a more stringent timeframe, like for short-stay visas. A Romania short-stay visitor visa, also referred to as a Schengen visa, allows non-EU/EEA/Swiss nationals to enter Romania for up to 90 days within a 180-day period. This visa is typically used for purposes such as tourism, business, or other approved activities.

Is there any National Registration Requirement or Permit?

In Romania, short-term rental operators must register with the Ministry of Economy, Entrepreneurship and Tourism and the Trade Registry. This involves submitting documents including an application form, proof of registered office address, representative information (including identity documents and fiscal records), and, if applicable, owner's association approval and other required authorizations. These documents ensure legal compliance.

Is there a need for Permission from Landlord/Local Council/Neighbors?

Yes, operating a short-term rental in Romania requires specific permissions relating to the lease agreement. For tenants, permission from the landlord is typically mandatory, and some properties may require homeowners' association approval, especially in shared buildings.

Is Short-term rental Income taxable?

In Romania, short-term rental income is taxed at a flat 10%, either on net revenue (after a 40% expense allowance) or actual expenses. Renting more than 5 rooms/contracts annually changes the tax rules. A 10% health insurance contribution applies if rental income exceeds 12 minimum monthly gross salaries (calculated on RON 30,600, due May 25th). If annual income exceeds RON 300,000, VAT registration is mandatory (5-19% rate, monthly/quarterly returns based on turnover, due 25th of the following month/quarter). 1 Consulting a tax professional is recommended

Is there any National Tourism Fund or Tourist Tax?

Romania imposes a tourism tax on short-term rental accommodations, with funds going towards national and local tourism development. This tax is typically a percentage of the nightly rate and is collected by the host, who remits it to local authorities. The tax rate varies, with some cities like Bucharest charging higher rates due to demand and tourism infrastructure needs. Hosts must include this charge in their booking fees and are responsible for regular remittance. This tax system provides essential funds for infrastructure improvements, marketing, and other tourism-enhancing initiatives in Romania.

Is there any Guest Registration and Reporting Requirement?

While Romania has no explicit national guest registration requirement for short-term rentals, EU regulations mandate such registration for safety and security. Hosts must collect guest details (names, IDs), report to local authorities (often within 24 hours of arrival), and maintain records. Compliance avoids penalties and fosters positive community relations. Tools like Enso Connect can automate this process.

Is there any National Health and Safety Requirements?

Romania’s national health and safety requirements for short-term rental properties, particularly in the context of tourism, focus on ensuring the security and well-being of guests. These standards include regulations on fire safety, emergency preparedness, sanitation, and structural integrity. Short-term rental operators are expected to comply with Romanian health and safety codes, which mandate that rental properties are safe, hygienic, and accessible. Safety measures include the installation of smoke detectors, fire extinguishers, and clear emergency exits. Fire safety protocols are enforced under the General Inspectorate for Emergency Situations (IGSU), which regularly inspects buildings and enforces fire safety regulations. Additionally, health inspections ensure that properties adhere to sanitary standards, especially when providing food or kitchen facilities for guest use. The law mandates that owners maintain clean, hazard-free environments, ensuring structural stability and adequate lighting, ventilation, and access to water. These measures collectively ensure that short-term rental properties meet a nationwide standard of safety for both residents and tourists.

Is there any Platform Accountability Requirement?

Romania's short-term rental platform accountability is less strict compared to Western Europe, but regulations are tightening. While platforms aren't mandated to ensure all listings comply with Romanian laws, the EU's digital services directive pushes for platform responsibility. Platforms might:

  • Verify host identity through documents.
  • Share host and listing data with authorities.
  • Remove non-compliant listings.
  • Educate hosts on local regulations.

These are potential measures, and specifics may change. Consult legal experts or authorities for the latest information.

Is there any Anti-Discrimination Law?

Romania enforces anti-discrimination laws that apply broadly to all sectors, including housing and short-term rentals. These regulations are covered under the Romanian Anti-Discrimination Law (Ordinance No. 137/2000) which prohibits discrimination based on race, nationality, ethnicity, language, religion, social category, beliefs, gender, sexual orientation, and other statuses. This law is in line with European Union standards and applies to public and private housing, including short-term rental accommodations. Violations of these anti-discrimination laws can result in fines, legal proceedings, or bans on hosting. For instance, if a host refuses to rent to a guest based on ethnicity or religion, they can face legal consequences enforced by the National Council for Combating Discrimination (CNCD). This council is responsible for investigating discrimination claims and imposing fines where necessary, promoting inclusivity and protecting the rights of all guests in the short-term rental market.

Is there any Data Sharing Requirements?

Romanian authorities have implemented data-sharing requirements that affect short-term rental platforms, particularly in the context of public safety and tax regulation. Short-term rental platforms may be required to share data about their listings and transactions with the Romanian government, specifically with the National Agency for Fiscal Administration (ANAF). The primary basis for this data sharing is to ensure that hosts comply with tax laws, report their income, and pay the necessary taxes. Additionally, law enforcement may request data from these platforms in cases involving public safety or criminal investigations.

DAC7 references the EU Council Directive 2021/514, which requires online companies such as Airbnb to collect and report taxpayer information on certain platform users who earn income on the Airbnb platform. If you have a listing for a property located within one of the 27 EU Member States or you are resident in an EU Member State, DAC7 impacts you.

A person is “resident” for DAC7 purposes in a country in which the person has their primary address and, in addition, any other country in which the person has been issued with a tax identification number (TIN).

Is there any National Insurance Requirement?

Currently, there is no mandatory requirement for short-term rental hosts in Romania to carry liability insurance, although it is highly recommended. In cases where a host offers their property as a short-term rental, liability insurance can be beneficial in protecting against potential claims for accidents or injuries on the property.

Liability insurance can cover various risks, including:

  • Property Damage: If a guest accidentally damages the property.
  • Personal Injury: If a guest or third party is injured on the property.
  • Loss of Use: If the property becomes uninhabitable due to an insured event.
  • Legal Defense Costs: If you are sued as a result of an incident on the property.

Some online rental platforms like Airbnb offer their own host protection programs, but these are limited and may not cover all scenarios.

Is there any National Zoning law/Cultural Heritage law?

Romanian zoning laws and cultural heritage regulations are established to protect areas of historical or cultural significance. These regulations often limit or control the use of properties in designated zones, especially in historical cities like Bucharest, Sibiu, and Brașov, where many buildings and districts are under cultural preservation status. Properties located in such areas require special permits to be used as short-term rentals, and in some cases, may be prohibited entirely. The Ministry of Culture and National Heritage enforces these protections, requiring hosts to comply with strict guidelines to maintain the integrity of cultural sites. Zoning laws aim to balance tourism and preservation, preventing overcrowding and the deterioration of Romania’s cultural heritage.

Is there any Environmental Regulations that affects STR?

Romania has established environmental regulations that indirectly affect the short-term rental sector, emphasizing sustainability and waste management. Regulations focus on reducing the environmental footprint of tourism, which includes provisions for energy conservation, waste reduction, and sustainable water use. Property owners are encouraged to implement energy-efficient systems, such as LED lighting, recycling programs, and low-flow water fixtures. Short-term rental operators must comply with local waste management laws, which mandate the proper disposal and segregation of waste. Furthermore, some municipalities may have specific environmental policies that apply to tourist accommodations, helping to ensure that tourism growth aligns with environmental sustainability goals

Is there any National Tenant Protection Law?

Romania has tenant protection laws aimed primarily at safeguarding the rights of long-term tenants. These regulations are laid out in the Romanian Civil Code, which specifies tenants' rights, notice requirements, and protections against unjust eviction.

While Romania doesn't have specific laws directly prohibiting evictions for the purpose of short-term rentals, it does have general tenancy laws that protect long-term tenants. These laws ensure that tenants have certain rights and protections, including:

  • Lease Agreements: Lease agreements, whether written or oral, establish the terms and conditions of the tenancy, including the duration of the lease.
  • Eviction Procedures: Romanian law outlines specific procedures for evicting tenants. These procedures typically require a valid reason for eviction, such as non-payment of rent or significant breach of the lease agreement.
  • Notice Periods: Landlords are generally required to give tenants sufficient notice before eviction, allowing them time to find alternative accommodation.
  • Fair Treatment: Landlords are expected to treat tenants fairly and with respect. Discriminatory practices, such as eviction based on nationality or other protected characteristics, are prohibited.

Is there any Reporting Requirements for Foreigners?

Foreigners operating short-term rentals in Romania have several reporting requirements: 1) Property registration with tax authorities (and potentially the National Tourism Authority); 2) Tax reporting of rental income (subject to Romanian income tax and potentially VAT; double taxation agreements may apply); 3) Guest reporting (names, IDs/passports) to local authorities (especially for tourist accommodations); and 4) Potential business licensing (if operating commercially). Appointing a local representative is often advisable. Consulting legal/tax advisors is recommended.

Is there any Digital Platform Regulation Compliance?

In Romania, platforms are required to ensure listed short-term rentals meet safety, tax, and legal requirements, including accurate property information and necessary permits. Non-compliance can result in penalties for both platforms and hosts. While there's no national requirement to register foreign guests with immigration, passport verification is recommended, and hosts should check for local guest registration requirements and comply with GDPR data privacy laws.

Is there any Consumer Protection Law that affect STR?

Romania has established consumer protection laws that ensure short-term rental contracts are fair and transparent. The Consumer Protection Law (No. 296/2004) provides a framework for regulating contracts between consumers (guests) and service providers (hosts). This law mandates that contracts be clear and disclose all relevant information, such as the total cost of the rental, cancellation policies, and any additional fees that may apply.

Hosts are also required to offer services that meet the agreed-upon standards. If a guest faces issues such as a property not matching its description or unsafe conditions, the guest has the right to seek legal recourse. Romanian consumer protection laws provide remedies, including the right to a refund or compensation for damages.

The National Authority for Consumer Protection (ANPC) oversees the enforcement of consumer rights and ensures that short-term rental hosts comply with these laws. This includes investigating complaints related to deceptive practices, non-disclosure of fees, or misrepresentation of rental properties.

Is there any Law that applies to Non-resident Owners?

Romania has regulations targeting non-resident owners of short-term rental properties, particularly in relation to taxation and residency requirements. Non-resident property owners are subject to the same regulations as Romanian residents when it comes to registering their rental properties and paying taxes on rental income.

Foreign owners of short-term rental properties must ensure that their properties are registered with the local authorities and comply with zoning laws, health and safety standards, and tax obligations. Non-resident owners are also required to pay taxes on the income generated from their properties, which are subject to Romania’s income tax laws.

Is there any classification of STR in the country?

Romanian short-term rentals used for tourism are subject to classification by the National Authority for Tourism (ANT), often using a star rating system (1-5 stars). 1 Properties are distinguished as residential (occasional rentals, fewer services, may not need tourism classification) or commercial (frequent rentals, additional services). Tourist-oriented rentals must register with local authorities and sometimes the National Tourism Registry. Apartments may be exempt from tourism classification if offering minimal services, while villas/guesthouses usually require it. Rural tourism properties have specific classifications. All properties must comply with zoning and building regulations, and tourist properties are inspected for safety/hygiene. Local municipalities may have additional rules. Checking with local authorities and the ANT is crucial for determining specific requirements.

Are there Special National Event Regulations?

During national events or holidays in Romania, while there aren't specific regulations exclusively targeting short-term rentals, some general measures and local ordinances might be implemented to ensure public order and safety. These could include:

General Measures:

  • Increased Police Presence: During national events, there might be an increased police presence in tourist areas, including areas with short-term rentals.
  • Noise Restrictions: Local authorities may impose stricter noise restrictions during certain hours, especially at night. This could impact short-term rental guests, particularly in areas with significant tourist activity.
  • Temporary Traffic Restrictions: Some areas might have temporary traffic restrictions, which could affect guests' mobility and access to the property.

Local Ordinances:

  • Curfews: In some specific cases, especially during major events or emergencies, local authorities might impose curfews. While this is not common, it's important to be aware of any local ordinances that might be in effect.
  • Special Permits: For certain events, local authorities might require special permits for short-term rentals, particularly in historical or crowded areas.

It's important to note that these are general possibilities and specific regulations can vary depending on the event, location, and local ordinances.

Is there any Penalty for Violating National Rules?

The penalties for violating national short-term rental regulations in Romania can be severe, with fines, legal actions, and the suspension of rental operations being common consequences for non-compliance. Renting out a property without the necessary permits or failing to meet health and safety standards can result in hefty fines.

For example, failing to register a property with the local authorities or not adhering to tax regulations can lead to fines imposed by the National Agency for Fiscal Administration (ANAF). Additionally, non-compliant hosts may be subject to legal actions, including lawsuits from guests or other stakeholders. If a host repeatedly violates the rules, their ability to rent out the property can be revoked, resulting in lost income and damage to their reputation.

Local authorities may also suspend short-term rental operations in certain cases, particularly if the property is found to be unsafe or in violation of zoning laws. This can lead to operational disruptions and financial losses for the host

Are there National Rules or Regulations Governing Short-Term Rentals in Romania?
Are there National Rules or Regulations Governing Short-Term Rentals in the Country?

Romania regulates short-term rentals, especially those for tourism. Key rules include: 1) Registering tourist accommodations with local/national authorities; 2) Potentially needing a business license for frequent rentals or extra services; 3) Declaring rental income and paying taxes (income tax and potentially VAT); 4) Possible tourism classification (star ratings); 5) Meeting health and safety standards; 6) Reporting guest information; 7) Complying with zoning laws; 8) Adhering to consumer protection laws (accurate listings); and 9) Platform compliance (e.g., ensuring host registration). Regulations vary, so consulting local authorities or legal experts is recommended to avoid penalties.

Is there any National Tax that affects short-term rental?

Romanian short-term rental income is subject to: 1) 10% Personal Income Tax (PIT) on 60% of gross rental income (40% standard deduction); 2) Potential VAT (19%) if annual income exceeds RON 300,000 or voluntary registration; 3) Optional 25% social security contributions (CAS) if rental income exceeds RON 36,000 and the individual has no other insured income; and 4) Potential local taxes/fees. Double taxation treaties may apply to foreign hosts. Registration with tax authorities, annual declarations, and consulting a tax advisor are recommended.

permits, license
Are there any Permits, Licenses, or Registrations for Cazare Pe Termen Scurt in Romania?
Are there any Permits, Licenses, or Registrations for Short-term Rentals in the Country?

In Romania, short-term rental operators must register with the Ministry of Economy, Entrepreneurship and Tourism and the Trade Registry. This involves submitting documents including an application form, proof of registered office address, representative information (including identity documents and fiscal records), and, if applicable, owner's association approval and other required authorizations. These documents ensure legal compliance.

Is there any National Association for Cazare Pe Termen Scurt owners in Romania?
Is there any National Association for STR owners in the Country?

Romania has national associations supporting property owners, including short-term rental operators: AGPI (Association for Rental Properties in Romania) focuses on networking, legislative advocacy, and improving rental business efficiency. RABO (Romanian Association of Building Owners) unites property investors to promote a sound legislative framework for real estate investment. Both are based in Bucharest.

National Association for STR Owners

Disclaimer

Lodge compliance is not a licensed tax or financial advisor. Therefore nothing in the above article should be construed as tax, legal, or financial advice. Contact your local tax office for information regarding your personal circumstance.

Stay Compliant with Ease

Access the tools you need to stay compliant and grow your lodging business effortlessly. With Lodge Compliance, navigating regulations has never been easier.

Get Access