Property values triple in Moldova as mayors debate tax hikes for 2027
Following a recent cadastral reevaluation that tripled most property values in Moldova, local mayors are divided on adjusting tax rates to prevent a severe hike in citizens' financial burdens by 2027.
Local budgets vs. citizen burdens
While keeping current percentage rates unchanged would automatically lead to higher bills due to the expanded tax base, some municipalities are already planning cuts. In Chisinau, the current property tax rate is 0.185%. Without a rate reduction, a tripled cadastral value directly translates to significantly higher costs for residents.
Representatives of the Congress of Local Authorities of Moldova (CALM) noted that the new cadastral values will not affect real estate market prices, and setting tax rates remains entirely up to individual local councils.
Ialoveni and Causeni seek to maintain low costs
“We will minimize taxes as much as possible for all categories, because the evaluation also affected the elderly and large families,” said Ialoveni Mayor Sergiu Armasu. He noted the municipality has sufficient revenues to absorb the adjustment. Currently, Ialoveni residents pay a property tax rate of 0.07%.
In Causeni, where the rate is 0.05%, the administration plans to freeze it. “We will maintain last year's rate and will not increase it. Most people requested that taxes remain at the same level,” said Mayor Alexandru Dontu.
Glodeni and Balti weigh financial needs
Other cities acknowledge the pressure on local budgets. “As long as a town hall's main source of income consists of taxes, and requirements grow daily, we will make some adjustments within legal limits,” said Glodeni Mayor Stela Onutu, adding that public consultations will determine the final 2027 rate.
Balti Mayor Alexandr Petkov stated that no final decision has been made, but emphasized that the city council will prioritize protecting citizens' interests. Residents there currently pay a 0.2% rate.
Chisinau authorities pledge stability
Chisinau Mayor Ion Ceban previously assured residents that the administration would prevent dramatic tax spikes.
“I will order that there are no substantial differences in the actual monetary value of this tax, so the amount remains practically unchanged. We will not allow people to pay more,” Ceban said during a February press conference.
Market stability and valuation context
Igor Cristal, a legal expert at CALM, explained that while the cadastral values have tripled, property taxes are modest, typically amounting to a few hundred lei. “The amount of property tax has nothing to do with the market value of the buildings. Therefore, the real estate market will not be influenced,” he noted.
The mass reevaluation, a first for Moldova, aims to align cadastral values with economic reality and eliminate the need for citizens to pay for individual evaluations during property transactions. The newly assessed values for 6.5 million homes and apartments will officially take effect on January 1, 2027.
Translation by Iurie Tataru
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