Property tax in the Republic of Moldova could reach up to 1% of the cadastral value starting in 2027, according to amendments included in a draft law prepared by the Ministry of Finance on simplifying tax and customs legislation.
The document proposes introducing a minimum rate of 0.05% and a maximum rate of 1% for real estate properties assessed by cadastral authorities. Within this range, the actual tax rate would be established by local public authorities.
The change is expected to be introduced alongside the update of cadastral values and their alignment with market values. As a result, the final amount of tax paid by property owners would depend on two factors: the updated cadastral value of the property and the rate approved by the local council.
For example, for a property valued at one million lei, the annual tax before any possible exemptions could range between 500 and 10,000 lei. For a property valued at two million lei, the amount could vary between 1,000 and 20,000 lei, depending on the rate set by local authorities.
However, these calculations are only indicative and represent the mathematical limits provided by the draft law. They do not mean that all local authorities will automatically apply the maximum 1% rate.
The Ministry of Finance argues that the reform is necessary in the context of applying updated cadastral values closer to market prices. According to the explanatory note, the proposed limits would provide local authorities with greater flexibility in setting tax rates.
The draft law also provides for updated value thresholds under which property owners may qualify for exemptions from real estate tax payments. However, the explanatory note does not specify the exact value of the new exemption limits or the estimated impact on property owners’ tax bills.
Starting January 1, 2027, the rules of the Tax Code regarding land and real estate taxation are also expected to apply to agricultural land without buildings, as well as apartments, houses and adjacent land plots in rural areas.
The financial impact on local budgets has not been quantified in the document. The Ministry of Finance states that the impact will depend on the decisions adopted by each local public authority.