Advantages, risks, and Airbnb-related legislation and taxation

Short-term rental (STR) — meaning short-term leases through platforms like Airbnb or Booking — remains a popular option for real estate investors in Bucharest, especially in central neighborhoods and areas with tourist or business potential. In 2025, the market is shaped by significant legislative changes and increased fiscal scrutiny.

Advantages

Higher yields compared to long-term rentals - STR investments can generate better net returns, especially when managed efficiently (cleaning, self-checkin). Operating costs typically range between 20–25% of gross revenue.

Flexibility and control - The owner can adjust prices according to seasonal demand or local events and may use the apartment personally when it’s not rented out.

Consistent tourist traffic - Bucharest continues to attract tourists, international students, and business travelers. This ensures a higher occupancy rate, provided the property is well-located and professionally managed.

Risks and disadvantages

Seasonal fluctuations - Occupancy rates can be inconsistent during the off-season or quieter periods. It may take a few months to achieve a steady flow of bookings.

Rising costs and faster wear & tear - Expenses for utilities, cleaning, platform fees (~3% + VAT), frequent maintenance, and furnishings accumulate quickly and affect profit margins.

Conflicts with neighbors or homeowners’ associations - Tourist presence may cause discomfort to neighbors. Many HOAs require written approval and formal notification before a property is listed on rental platforms.

Legislation and taxation in 2025

European regulations (effective as of May 20, 2026) - Platforms such as Airbnb and Booking will be required to report data to local authorities for each listing (number of nights booked, guests, address, registration number, etc.). This will apply automatically in Romania without the need for national implementation.

National regulations (Romania, 2025)

• A tourism classification certificate issued by the Ministry of Tourism is mandatory for all STR listings.
• Failure to comply can lead to fines ranging from 10,000 to 40,000 RON for both the host and the platform hosting unregistered listings.

Proper taxation in 2025

• Income from STR rentals (under 5 rooms) must be declared via the Annual Tax Declaration (“Declarația Unică”).
• A flat tax rate of 10% is applied to the official annual income norm, or to the adjusted norm, depending on conditions.
• A standard deduction of 20% from gross income applies. Additionally, a 30% reduction of the annual norm is allowed if at least three of the following conditions are met:
  a) the property is located in an area without access to public transport,
  b) it is located in a rural area,
  c) it is built from materials like wood rather than brick/concrete,
  d) it lacks at least one public utility (water, sewerage, electricity, or gas),
  e) it has shared bathroom facilities (not en-suite),
  f) the room’s surface is ≤15 sqm.
• The adjusted annual norm must reflect the actual number of months the property is rented (monthly or partial-month norms apply under Romanian tax rules).
• If gross income exceeds the threshold of six minimum gross salaries, the host is also liable for the health insurance contribution (CASS).

Intensified tax inspections

In 2025, the National Agency for Fiscal Administration (ANAF) launched large-scale inspections targeting undeclared STR income. Hosts who reported under the threshold face sanctions, and platforms risk having unauthorized listings removed.

Conclusion

Investing in short-term rentals in Bucharest in 2025 can be profitable if legal obligations are fully met and the operation is managed professionally. The 30% income norm reduction is available only in rare and specific situations — typically in rural areas — and the adjusted norm must be calculated accurately based on the actual rental period.

This investment is well-suited for those who:

• own properties in strategic urban locations;
• are willing to obtain the necessary tourism classification and stay tax-compliant;
• can efficiently outsource cleaning, property management, and accounting.

It is less recommended if:

• the property is located in low-demand zones;
• the investor seeks a passive, hands-off income source;
• the potential profit margin is small and unable to absorb operational or fiscal costs.

Also recommended Beginner’s guide: How to buy an apartment in Bucharest for rental and recover your investment