Government Emergency Ordinance No 104/2022, which was published in the Official Gazette No 657 on June 30, 2022, brings about several significant changes in the rules governing the sale of agricultural land located outside the village areas. Let’s break down the key points:
- Additional Tax Clarification: This ordinance clears up the rules for calculating, withholding, transferring, and reporting an additional 80% tax when someone intends to resell land within 8 years as of the purchase. This tax is on top of the regular Tax Code provisions. The ordinance also lays out how this tax is divided between state and local budgets.
- Conditions for Selling Agricultural Land: When selling agricultural land outside village areas, certain rules apply:
- People or companies can sell the land, but there’s a right of first refusal (i.e. pre-emption right). This means certain individuals or groups (i.e. preferred buyers) have the first opportunity to buy the land.
- If these preferred buyers don’t want the land, it can then be sold to others who meet specific conditions (i.e. potential buyers), like living in Romania for at least 5 years and engaging in agricultural activities.
- There’s also a process for notifying the public about land for sale, and potential buyers have a limited time to express their interest.
- If none of the above-mentioned potential buyers exercise their pre-emption right, the land can be sold to anyone who wants it.
- Public Notification: To sell agricultural land outside village areas, a seller must register its intention with the local authority (i.e. the Town Hall). The Town Hall will then publish this information for 90 days to make it available to preferred buyers and potential buyers.
- Penalties: Selling agricultural land without following the pre-emption right procedures or obtaining necessary approvals is prohibited and can lead to the nullity of the selling operation as well as to penalties, including fines.
In summary, this Government Emergency Ordinance No 104/2022 introduces changes to the rules for selling agricultural land outside village areas in Romania. It clarifies tax obligations, outlines who has priority to buy, and sets penalties for non-compliance.
