At the end of August 2018, the Local Council of Iasi unanimously voted for a Local Council Decision draft, approving a “minimis aid scheme” which offer tax benefits of up to 50% tax deduction on certified green buildings and energy-efficient A class.
Beneficiaries are legal entities that build „green” buildings or renovate the most part of the existing buildings. The tax incentives do not apply to certified buildings for maintenance and operation and prioritize Fully Fitted Certified Buildings, which are built or refurbished, fully finished, for a higher social and environmental impact. These elements differentiate the Local Council Decision adopted in Iasi by other minimis aid schemes adopted in other cities.
„The recently adopted minimis scheme places Iaşi on the map of green buildings and together with the „Pollution Reduction and Pollution Prevention Regulations on Sites „creates the most complete framework for the development of the green buildings sector in Romania.” – Dr. Dorin Beu, president of Romania Green Building Council (ROGBC).
The aim of these measures is the sustainable development, the urban regeneration and the environmental protection through rational and efficient use of natural resources, energy saving and the use of renewable energy sources.
„By adopting a legislation to stimulate the construction of green buildings, we are including Iaşi on the favorite destinations list of major real estate developers, with a direct impact on the development of the modern office buildings from 2019 to 2021.” – Dan Zaharia, senior consultant EXTIND
The measure adopted in the Local Council is part of a wider measures plan that align Iasi with European Union requirements for increasing the quality of life in the major cities of Europe.
„Our plan contains several measures, some already adopted, such as rehabilitation and modernization investments in the district heating system, adoption of the regulations regarding the increase of the green space in the city, the protection and control of the site in construction, the purchase of low-polluting public transport, investments in the purchase of new trams and electric buses with European funds, investments in alternative means of transport – the creation of a municipal system of bike-sharing, the separate collection of waste – which started this autumn, and European funds investment in the rehabilitation and revalorization of green areas for public use.
Our city also needs other measures that are not under the competence of the local authority and the most important ones are the construction of the ring road, increase the purchase of electric transport vehicles at a national level, discourage the purchase of polluting vehicles – respecting the principle being „the polluter pays”. I trust that the measures we adopt at the local level will make Iasi an attractive city from this point of view, where the quality of life will grow and the citizens of Iasi will enjoy an environment favorizing a cleaner and healthier lifestyle”, said Mihai Chirica, Mayor of IASI.
The tax incentives will be applied for January 1st, 2019 to December 30, 2021 and are granted according to the building’s sustainability level, as follows:
- 50% reduction of property tax, not exceeding € 20,000 / year, if the building has an A Class energy performance certificate, as well as a green building certificate for higher levels (Platinum, Outstanding, Gold, Excellent)
- 35% reduction of property tax, up to € 20,000 / year, if the building has an A Class energy performance certificate, and a green building certificate for intermediate levels (Silver, Very Good);
- 20% discount on property tax, not exceeding € 20,000 / year, if the building has an A Class energy performance certificate and a Green Building Certificate for levels (Bronze, Good, Certified).
EXTIND is a real estate company specialized in the rental of office buildings in the successful regional cities.
Romania Green Building Council (ROGBC) is the only organization in Romania that supports the development of the green building sector by its responsibility for the environment and energy efficiency throughout the entire life cycle of a building (from the design phase, construction to operation and deconstruction) recognized nationally and internationally. RoGBC has initiated and encouraged the adoption of tax incentives to support the development of green buildings since 2010.
