Crackdown begins on unlicensed rentals in Romania

Romania: Romanian authorities are cracking down on individuals who have earned income from renting out properties via short-stay booking platforms but who are alleged to have not declared their potential earnings.

Romania’s National Agency for Fiscal Administration [ANAF] is intensifying efforts to identify individuals earning income through platforms like Airbnb and Booking.com. Approximately 23,000 individuals are under scrutiny for potential undeclared earnings from property rentals, according to finance minister Tanczos Barna.   

The initiative is part of a broader strategy to tighten regulations on short-term rentals. The Romanian Government plans to impose fines ranging from 10,000 to 40,000 lei [€2,009–€8,037] on property owners who list accommodations without proper authorisation.   

According to the minister, they have identified between 22,000-23,000 individuals who have earned varying amounts. Those who have generated this level of income are now expected to voluntarily declare their earnings to ANAF and pay their taxes, and if they do not, they will in turn be audited.   

The property managers impacted by the regulation will receive compliance notifications and anti-fraud inspectors will initiate audits where necessary. Those with the highest amount of undeclared amounts will take priority for inspectors.  

Additionally, platforms promoting unregistered properties may also face penalties. The measures are part of a broader strategy to ensure tax compliance and regulate the short-term rental market.   

ANAF and the Anti-Fraud Directorate will continue to receive monthly data on income earned through booking platforms.   

The crackdown aligns with the European Union’s efforts to enhance transparency in the short-term rental sector. The EU has introduced regulations mandating harmonised registration requirements for property owners renting out accommodations for short periods.   

Romania’s actions reflect a growing trend among European nations to implement stricter regulations on short-term rentals, addressing concerns related to housing availability, tax compliance, and the impact on local communities.   

The move aligns with an announcement made by the Romanian Government last year, which detailed plans to tighten its grip on illegal short-term rentals, whereby, Romania’s Ministry of Economy, Entrepreneurship and Tourism published a draft normative act to prohibit the listing of illegal units of traditional booking platforms and social media.