Car Ownership in Romania – Everything you Must Know

Owning a car in Romania can be one of the best decisions a person can make. Car ownership comes with the freedom to travel, explore, and go on adventures whenever and to wherever they desire. Having to rely on public transportation in Romania can become tiresome and frustrating.

Dealing with disingenuous taxi drivers, overcrowded buses, or complicated train schedules can take a toll on anyone. Car ownership allows you to be self-reliant and can end up saving you many hours of time otherwise lost.

Owning a Car in Romania is Rewarding

Owning a Car in Romania is Rewarding

When you own a car, you take control of your destination and put the power back in your own hands. If you’re considering owning a car in Romania, then this guide is a must read. We break down all the requirements mandated by law, and everything else to be considered.

Like many aspects of living in Romania, car ownership comes with complication in figuring out all that’s required. Our guide solves the problem. Below are all the things you must know about owning a car in Romania.

Car Ownership in Romania – Table of Contents

Car Registration in Romania

The first step in becoming a car owner in Romania is registering the car. Unfortunately, like many other things that should be simple, car registration in Romania is anything but easy. To complicate matters, the heavy influx of used cars into Romania after the removal of the environmental car tax has caused massive delays. It is now normal to have to schedule DRPCIV appointments 90 days or longer in advance. To simplify your life, we wrote a full detailed guide on how to register a car in Romania.

A brief breakdown of the car registration process in Romania is as follows. You must first obtain all necessary documents from the seller after purchasing the car. Then, you need to declare the car to the tax authority in the county you live in. After the car is declared, you have to purchase car insurance. With a car insurance policy placed on the car, you then pay a car registration tax. After the payment of the tax you schedule and attend an appointment at your county’s DRPCIV center where you register the car.

Fuel Prices in Romania

One of the main factors you should take into consideration when deciding if it is worth it for you to own a car in Romania is the price of fuel. On average, fuel prices in Europe for both petrol and diesel are much higher than petrol and diesel prices in North America. Since the price differences also vary greatly across the different North American and European countries, I’ll compare the prices of fuel in Romania to prices in the USA, and across Europe as a whole.

Fuel Pumps in Romania

Fuel Pumps in Romania

Although it’s true that fuel prices across the world are always changing based on different factors, it’s also true that price differences in affordability between countries also remain relatively consistent. For instance, fuel prices in the USA have been significantly cheaper than in Romania for decades. At the time of this writing, the price of petrol is $0.52/liter cheaper in the USA than in Romania, and $0.53/liter cheaper for diesel.

The good news, however, is that for a European country, Romania ranks as one of the cheapest for fuel prices. At the time of this writing, and out of the 42 indexed European countries, Romania ranks 8th in cheapest petrol prices and 13th cheapest for diesel. To check up to date fuel prices across the world, and specific countries and cities, you can use the fuel price tracking website at globalpetrolprices.com

Car Taxes in Romania

Like every other tax known to man, car ownership taxes in Romania are a burdensome plague bestowed upon the public in order to extract away as much of the citizen’s hard-earned money as possible. The added frustration when it comes to car taxes in Romania is that they can be ambiguous, are always changing, and are often deemed illegal.

If politicians in Romania spent as much time trying to improve the country’s infrastructure, as they do in trying to find new ways to tax car owners, then the country’s roads would rival those of the west. Unfortunately, car taxes in Romania are like the roads in Romania, broken, in need of repair, and getting worse. Below we will explore the various taxes associated with car ownership in Romania.

Environmental Stamp Tax in Romania

The environmental stamp tax (timbrul de mediu) was a tax that was introduced in 2007 after Romania joined the European Union. The tax was imposed on second-hand (used) car registrations. Since Romania’s car fleet is mainly comprised of second-hand cars, the tax affected the majority of the country’s car owners. So how bad was the tax? Often times the tax imposed on registering a used car was higher than the value of the car itself.

Old Romanian Dacia

Old Romanian Dacia

If the high cost of the tax wasn’t bad enough, the confusion in how the tax was calculated was so ambiguous that even trained professionals weren’t always sure. In the wake of the tax, many websites sprung up with calculators that purported to use official legislation in conducting their formulas. The calculators claimed to give accurate tax estimates, only to have users quoted vastly different amounts when going to register their cars.

From its inception in 2007, the environmental stamp tax was deemed illegal and discriminatory by the European Commission. The ruling of its illegality, however, didn’t deter the Romanian government from imposing it upon the population. The environmental stamp, under various different names and modifications, plagued the Romanian population for 10 years until it was finally removed in 2017. But just like an incurable disease, the tax is set to make a comeback in 2019 to cause further torment.

Car Registration Taxes in Romania

The main tax that affected car registration in Romania was the environmental stamp that was discussed in the previous section. As of the current year 2018, the tax is no longer in effect, but as previously stated, it will soon be reintroduced. That being said, there are a few other taxes associated with the registration of a vehicle.

The current two main taxes which apply to car registrations in Romania are the VAT Tax (new cars only), and the registration certificate tax. In Romania, you have to pay VAT on the total price of the new car, including accessories or associated costs, such as delivery charges. Romania’s current VAT tax is 19%. The registration certificate tax is about 40 lei.

Yearly Car Tax in Romania

If you have a car registered in your name in Romania then you owe a yearly tax on it. The amount owed varies on a few factors including the engine size and your local. The key determining factor to the amount owed is the engine capacity of the vehicle. Reductions of up to 50% for the amount owed are available to individuals living in select areas of the country. The full list of communes that qualify for car tax exemptions is found here.

The calculation for the yearly car tax is done similar to an income tax bracket system. The higher the capacity of the engine (CC) the higher the tax bracket the car will fall in. To best be able to explain this, I’ll provide an example using the guidelines from the chart below. An 1896 cc engine falls under 18 lei for every 200 cc. I divide 200/1896 and come up with 9.48. I then multiply 9.48 X 18 lei to get 171 lei (rounded). The amount of tax due on an 1896 cc engine is 171 lei.

The yearly car tax is paid to the city hall where you are domiciled of the county where the car is registered. You can either pay the tax in two split installments or all at once. The deadline for the first installment is March 31, and for the second October 1. If you pay the tax all at once you benefit from a 10% discount. You can use the chart below to calculate how much tax would be owed based on the car’s engine capacity. The chart will be updated if rates changes in the future.

Romania Yearly Car Tax Calculations Chart

Engine Capacity 1,601 – 2,000 2,001 – 2,600 2,6001 – 3,000 3,001 and Upwards
Price / CC 18 lei / 200 cc  72 lei / 200 cc 144 lei / 200 cc 290 lei / 200 cc

Vignette Road Tax in Romania – Rovinieta

Like many other European countries, Romania has a road vignette system (called rovinieta) that requires drivers to buy a permit in order to drive on certain roads. The roads that require the Rovinieta tax are highways, express roads, European national roads, main national roads, and secondary national roads. In summary, any main highway outside of city roads requires a rovinieta tax. It is not required for driving within a city.

Most Roads in Romania Require a Rovinieta Tax

Most Roads in Romania Require a Rovinieta Tax

Once purchased, the rovinieta is electronically registered on the vehicles VIN (series number) and registration number (license plate). The registration is then stored in a national database. You can use the Romanian rovinieta’s official site to check if a car has a valid rovinieta. Enforcement of the rovinieta is done through highway cameras that photograph license plates, as well as by traffic police. Fines for driving without a rovinieta range from € 57 to € 1’050.

There are a few different options for purchasing a rovinieta. You can buy a 1-day, 7-day, 30-day, 90-day, or year pass. The prices vary depending on the category of the vehicle and the length of the pass. The longer the validity of the pass purchased, the bigger the savings you receive. A rovinieta can be purchased online, at many petrol stations, and in various other locations. Prices are listed below.

Romania Rovinieta Price Chart in Euros

Length/Class A B C D E F
1 day 4 7 9 11
7 days 3 6 20 35 45 55
30 days 7 16 52 91 117 143
90 days 13 36 120 210 270 374
Annual 28 96 320 560 720 1210

Car Insurance in Romania

Like most other countries in the world, Romanian law requires that motorists insure their registered vehicles. Romanian insurance is known as “asigurarea” and Romanian car insurance is called “asigurarea auto.” In Romania, car insurance is obtained on a car by its owner, once the car is under a policy, the policy covers all drivers. If an incident occurs, the driver at fault and owner of the policy are both penalized.

RCA Insurance is Required by Law in Romania

RCA Insurance is Required by Law in Romania

Punishments for being caught driving without insurance include fines up to 2,000 lei, and the confiscation of the car registration certificate. Romanian law requires that a registered vehicle stored in a location viewable to the public must be insured, regardless if it’s being used or not. Surrendering the car’s plates and registration certificate, and storing it outside of public view alienates the insurance requirement.

RCA and CASCO Insurance in Romania

There are two available types of car insurance offered in Romania, RCA (also known as MTPL) and CASCO. RCA insurance is mandated by law, and CASCO is optional. RCA stands for asigurare de răspundere civilă, which translates to civil liability insurance. RCA insurance covers the other party in a vehicle accident. CASCO insurance covers the vehicle of the insured under the CASCO policy regardless of who is at fault. The CASCO insurance also covers car theft and various other damages.

Insurance Policies and Premiums

You can purchase policies for periods of 1, 6, or 12 months at a time. Discounts on price are typically offered for policies of longer-term durations. You can purchase car insurance in Romania from either a broker or directly from the insurance company itself. Using a broker is advantageous in that broker compares policies across multiple companies to find you the best deal.

The insurance premium (price) you pay for a policy can be paid in full or installments. The price of policies varies by individual and situation. Some of the factors that insurance companies consider when providing policy rates include the age of the driver, location of the car, and technical characteristics of the vehicle such as cylinder capacity, number of seats, etc.

Romania RCA Price Estimation Chart (Lei)

Romania RCA Insurance Price Estimates (source asfromania.ro)

Romania RCA Insurance Price Estimates (source asfromania.ro)

 

Green Card System of Car Insurance

Since 2007, Romanian liability car insurance policies (RCA) fall under a system known as the green card system. The green card system is an agreement between many European countries (currently 48) to recognize the insurance policies of the other countries in the system. If you are traveling abroad in any EU or EEA country, as well as any of the countries mentioned on this list your Romanian green card insurance will be valid.

Bonus-Malus System in Romania

Romanian auto insurance policies operate under a bonus-malus system. The system is set up as a mechanism to reward drivers with good records and to punish drivers with bad records.

Bonus-Malus records are tracked over yearly periods. If after a year of having insurance a driver hasn’t made a claim, he is rewarded with a bonus in the form of a discount at policy renewal. However, if the driver made a claim during the year, he is given a malus and his policy renewal rate increases.

AIDA Car Insurance Database

Romanian car insurance policy information, claims, and histories are stored in a database known as AIDA (formerly known as CEDAM). AIDA, which stands for administrare istoric date asigurati (Administration of Historic Insurance Data) allows users to check various information on insurance policies.

Through AIDA you can check your Bonus/Malus class verification, verify your policy, and check claims made on a car’s VIN number.

ITP Technical Inspection

Romanian legislation requires that all vehicles which operate on the road pass a technical inspection known as ITP. ITP stands for inspectie tehnica periodica (periodical technical inspection). ITP requirements vary depending on the age of the car. As of 2018, cars that are older than 12 years require yearly ITP checks. Cars that are purchased new require ITP verification after 3 years, and then every 2 years until they are 12 years or older.

ITP verifications are carried out at stations which are certified by Romania’s Auto Registry (RAR). The price for an ITP verification is about 100 lei but can reach 180 depending on the station used. The auto technicians at ITP stations check the vehicle for technical malfunctions or problems. They check the car’s breaks, tires, lights, emissions, steering, etc.

If the ITP check is passed, you receive a stamp on the registration and a certificate. If ITP fails, you are given a document with the reason(s) for refusal and are told to make the requested repairs. If you are caught driving a car that doesn’t have a valid ITP date you will be issued a fine of up to 2900 lei. Your car registration certificate will also be confiscated.

Winter Tires Requirements in Romania

Since 2011, Romanians have been mandated by law to use winter tires on snow or ice covered roads. The requirement for winter tires starts each year on the 1st of November. However, the law states that winter tires are only required on roads which have snow and ice.

Many regions in Romania, such as Bucovina, receive snow each year and thus the snow tire requirements fall yearly. Other regions of Romania, such as Banat, have milder climates and thus bypass the requirement if they don’t receive snow.

Snowy Roads in Romania Require Snow Tires

Snowy Roads in Romania Require Snow Tires

If you live in a region of the country that receives snow during the winter months, then it’s vital that you equip your car with snow tires during the winter. Snow tires are constructed to deal with winter conditions and are designated with an “MS”, “M+S” or “M&S” which stands for mud and snow. Snow tires also have a snowflake symbol on them. Penalties for driving without snow tires on snowy roads in Romania include fines of up to 2,900 lei and the confiscation of your car registration certificate.

Be careful when purchasing snow tires not to get tricked into buying so called “all-season” tires. These all-season tires are marketed as being usable for winter and summer. Although that statement might be true, if the tires don’t specifically have an MS or snowflake symbol on them they’ll be considered invalid and subject to fines.

Most car owners in Romania have two sets of tires, winter and summer. Changing between the two tires can be done at any auto mechanic or tire shop, and even at many car washes. The cost for swapping seasonal tires is about 70 lei.

Auto Mechanics in Romania

Auto mechanic shops in Romania are found throughout the country. Although they are primarily located in major cities, they can also be found in smaller villages and communes. The best way too find an auto mechanic nearest you is to search engine the term “service auto” and check the results. If you need to take your car to a mechanic for service or maintenance, it’s best practice to first call and schedule an appointment.

Auto shops in Romania can be very crowded and hard to figure out. Customer service is usually very lacking and you can get lost in confusion if you’re not careful. Usually after you pull up to the shop, your best bet is to park the car, get out, and ask the nearest service tech you see where you need to go. They generally won’t come assist you if you don’t seek them out. You need to initiate a request for help.

Romanian auto mechanic shops vary in quality and expertise. It’s always wise to read online reviews (if available) or only use mechanic shops which are recommended. The good news about using a service auto shop in Romania is that labor costs are very cheap compared to other European countries. Most auto mechanic shops also allow you to purchase car parts from a 3rd party, such as an online site like autokarma, and will install them at labor costs.

Driver’s License Requirements in Romania

Car ownership in Romania would be considered worthless if you didn’t posses the legal means to drive the car in the country. Romania has very specific driver’s license requirements for individuals visiting and residing in the country. The laws specifically have to do with license requirements for visitors, and for residents.

If you’re a resident or citizen of Romania and are living in the country, then you are required by law to posses a Romanian driver’s license. The only exception is if you possess a driver’s license from another EU member state. All EU driver’s licenses are valid in Romania until their expiration.

Tourists to Romania are typically allowed to drive in the country for 90 days with their foreign driver’s licenses. This rule depends on which country the tourist originates from and if it has a license treaty with Romania. Some country licenses, like from the US and Canada, require International Driving Permits to drive in Romania.

To find out more information about Romania’s driver license requirements. Visit our full and complete guide on obtaining a driver’s license in Romania. In it we explain Romania’s drivers license laws and obligations, and we walk you through the process of obtaining a driver’s license by exchanging for one, or through taking and passing Romania’s driving exams.

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