Housing Finance Policy

    Text bolded/green below shows notes and variable definitions when you roll over. If you cannot see the notes, please download an Excel version from the Research Center, which includes notes. Also, a PDF featuring variable definitions is available in the document list under "Definition of Hofinet Variables".

     

    A. Legal and Regulatory Framework

    A.1 Legal and Regulatory Framework
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    Basis of the legal system: Civil, Common, Islamic, Other? (Describe)CivilCivilCivil
    CIA World Factbook
    		A.1.1
    Are there specific laws that deal with mortgages? YesYesYes
    Research
    		A.1.2
    Registration/Transfer of titles:A.1.3
    Does the law clearly define different types of property rights?YesYesYesA.1.3.1
    Typical number of days needed for the transfer of title14.51515
    WDI
    		A.1.3.4
    Are there legal constraints on mortgage features?Yes  
    Research
    		A.1.6
    Interest rate capsNo  
    Research
    		A.1.6.1
    Loan-to-Value capNo  
    Research
    		A.1.6.2
    Payment-to-Income maximumNo  
    Research
    		A.1.6.3
    OtherNo  
    Research
    		A.1.6.4
    Is there specialized legislation covering:A.1.9
    B. Housing Finance Subsidies
    B.1 Subsidies to Housing Finance Institutions
    B.2 Subsidies to Households
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    Are there subsidies to households on housing finance?No  
    Hypostat
    		B.2.1
    Interest rate subsidies by special government fundsNo  
    Research
    		B.2.1.1
    Buy-down of monthly/interest paymentsNo  
    Research
    		B.2.1.2
    Down-payment subsidies No  
    Research
    		B.2.1.3
    Subsidies to savings for mortgage loansNo  
    Research
    		B.2.1.4
    Mortgage interest deductibility from income taxNo  
    Research
    		B.2.1.5
    OtherNo  
    Research
    		B.2.1.6
    Reach of subsidies in 2.1.1 to 2.1.4 ?B.2.2
    C. Taxation
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    What taxes apply to Residential Real Estate?C.1
    Tax on property (home-owners) YesYesYes
    Global Property Guide
    		C.1.1
    Property transaction taxes (purchase/selling)YesYesYes
    Global Property Guide
    		C.1.2
    Tax on capital gains on property NoNoNo
    Global Property Guide
    		C.1.5
    OtherYesYesYes
    Global Property Guide
    		C.1.6
    Are there tax benefits on rental properties?Yes Yes
    Global Property Guide
    		C.2
    Describe tax benefits (if any) from C.1.2A fixed deduction of 40% of the gross income is allowed to account for income-generating expenses. A deduction of 25% of gross rental income is permitted for income-generating expenses
    Global Property Guide
    		C.2.1
    back to top | Country Data:
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households living rent-free
    Notes: % of households living rent-free
    Notes: % of households living rent-free
    Notes: % of households living rent-free
    Notes: % of households living rent-free
    Notes: % of households living rent-free
    Notes: % of households living rent-free
    Notes: % of households living rent-free
    Notes: % of households living rent-free
    Notes: % of households living rent-free
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: A local land tax is collected from property owners. The rate is applied per square meter and ranges depending on location of property. Nonresidents are also liable to pay rental income tax at a rate of 16%
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: CEC Bank is a state-owned bank that was founded in 1864.
    Notes: Central Bank uses prudential guidelines of European Banking Authority
    Notes: Includes all fixed rate loans
    Notes: Includes all fixed rate loans
    Notes: Includes all variable rate loans
    Notes: Includes all variable rate loans
    Notes: Includes commercial transactions; National figure
    Notes: Includes commercial transactions; National figure
    Notes: Includes commercial transactions; National figure
    Notes: Includes commercial transactions; National figure
    Notes: Includes commercial transactions; National figure
    Notes: Includes commercial transactions; National figure
    Notes: Includes commercial transactions; National figure
    Notes: Includes commercial transactions; National figure
    Notes: Includes commercial transactions; National figure
    Notes: Includes commercial transactions; National figure
    Notes: Includes commercial transactions; National figure
    Notes: Includes commercial transactions; National figure
    Notes: Includes commercial transactions; National figure
    Notes: Individuals who sell Romanian property are liable to pay transfer tax, levied on the sales proceeds. The applicable tax rate depends on the property value.
    Notes: Individuals who sell Romanian property are liable to pay transfer tax, levied on the sales proceeds. The applicable tax rate depends on the property value.
    Notes: On 3/3/16, the law on covered bonds came into force. Therefore, bonds may be a mortgage funding source in the future
    Notes: Property tax on residential buildings ranges from 0.08% to 0.20%. There is also a local land tax collected from property owners. The rate is applied per square metre and ranges depending on location of property.
    Notes: Property tax ranges from 0.08 to 1.3%, depending on property value and the building's classification. There is also a local land tax collected from property owners. The rate is applied per square metre and ranges depending on location of property.
    Notes: Property tax ranges from 0.08 to 1.3%, depending on property value and the building's classification. There is also a local land tax collected from property owners. The rate is applied per square metre and ranges depending on location of property.
    Notes: Rental income earned by nonresidents is taxed at a flat rate of 10%.
    Notes: Rental income is taxed at a rate of 16% for nonresidents. A 25% deduction is allowed
    Notes: Starting from 1 January 2019, NBR Regulation no. 6/2018 sets max DTI of 40% on loans in domestic currency and 20% for those in foreign currency
    Notes: The seller of an immovable property is liable to pay transfer tax. The rate varies depending on length of time the seller owned the property and the property value
    Notes: The seller of an immovable property is liable to pay transfer tax. The rate varies depending on length of time the seller owned the property and the property value.