Real estate revaluation in Chisinau - 3 real examples

The Agency for Geodesy, Cartography and Cadastre, together with the public enterprise “Cadastre of Real Estate”, have completed the process of evaluating and re-evaluating over 6,000,000 real estate properties nationwide.

The purpose of the re-evaluation is to update the cadastral values ​​so that they are as close as possible to economic realities and market prices. Property owners can check the new cadastral values ​​on the official platform geodata.gov.md.

Many apartment and house owners in Chisinau have noticed that the cadastral value of their property has increased as a result of this process. For some it is a surprise, for others – a concern, and the most common questions are the following:

• How necessary are these revaluations?
• How accurate are the new cadastral values?
• Will we pay higher taxes?

Let me explain to you more simply, clearly and without complicated terms what this revaluation means, why it was done and what real impact it will have on people starting with January 1, 2027.

How necessary are these evaluations?

Given that the last cadastral evaluations were carried out between 2004 and 2011, and the real estate market and economic reality have changed considerably in the meantime, state intervention was necessary to update the values ​​of real estate, aligning them with current market realities, which brings more transparency and fiscal fairness.

The evaluation process covered approximately 6.4 million real estate properties at the national level (apartments, houses, holiday homes, garages, land with different destinations, commercial spaces, etc.) and had two main directions:

• evaluation of properties that previously had no cadastral value;
• reevaluation of apartments, townhouses, garages and commercial properties.

The cadastral values ​​were based on:

• real market transactions;
• different reference periods: 2022 - for apartments, 2023 - for urban and rural houses, orchards and garages, and 2024 - for commercial and industrial buildings.
• modern valuation models aligned with international practices.

How accurate are the new cadastral values?

In order to understand how accurate the new revaluations were, we analyzed three types of real estate located in the same sector - Rîșcani, Chișinău, comparing the new cadastral values ​​to both the old ones and the real market value.

(Example N1) 3-room apartment – ​​old block of flats (built in the 1980s)

• Area: 70 m²
• Old cadastral value: 410,000 MDL
• New cadastral value: 1,200,000 MDL (approximately 60,000 euros)
• Increase in cadastral value: +193%

The current market value of such an apartment is, on average, 50% higher than the updated cadastral value, i.e. 90,000 euros.

(Example N2) 3-room apartment – ​​new building (built in 2018)

• Area: 86 m²
• Old cadastral value: 600,000 MDL
• New cadastral value: 1,500,000 MDL (approximately 75,000 euros)
• Cadastral increase: +150%

The market value is estimated at approximately 100% above the revalued cadastral value, i.e. approximately 150,000 euros.

(Example N3) Residential house with land - (built in 2007)

• Cadastral area: 90 m²
• Total exterior area: 175 m²
• Privatized construction land: 5 ares

Cadastral values:

• Land: from 320,000 MDL to 1,200,000 MDL (+275%)
• House: from 900,000 MDL to 2,000,000 MDL (+122%)
• Total cadastral value: from 1,220,000 MDL to 3,200,000 MDL (approximately 160,000 euros)

The market value of this type of property is, on average, approximately 200% above the updated cadastral value, around 480,000 euros.

Note: The adjustment of cadastral values ​​differs depending on the market segment and the location of the property. The examples presented above are indicative and are provided solely for a better understanding of how these changes occurred.

Analyzing the revaluation of some land within a 50 km radius of Chisinau, we observed that in some cases, the new cadastral value is higher than the current market price.

Will we pay higher taxes?

In the Republic of Moldova, the minimum tax rate applied to residential real estate is 0.05% of the cadastral value, but local public authorities (LPAs) have the right to increase this rate, depending on local budgetary needs. In the municipality of Chisinau, most LPAs apply a rate of 0.1%, and this annual tax is mandatory for owners.

Comparing these rates to the three examples analyzed above, we observe both significant percentage increases and real differences, expressed in lei. Thus, for a 3-room apartment in an old block of flats, the annual tax increased from approximately 410 MDL to approximately 1,200 MDL, which represents an increase of almost 190%, but in absolute terms we are talking about a difference of approximately 790 MDL per year.

In the case of an apartment in a new block of flats, the annual tax increases from 600 MDL to around 1,500 MDL, an increase of approximately 150%, or +900 MDL annually. For a single-family home, the tax increases from approximately 1,220 MDL to around 3,200 MDL, which means an increase of approximately 160%, or +1,980 MDL per year.

To reduce the real impact of taxes paid, local public authorities could temporarily adjust the tax rate, with any increases being applied gradually. Such an approach would allow citizens to gradually adapt to the new cadastral values ​​and avoid sudden financial pressure on family budgets.

Wealth tax (“luxury tax”) after revaluation

The updating of cadastral values ​​is directly related to the property taxation system, often known as wealth tax or, in common parlance, “luxury tax”.

How the tax worked before 2025

Until 2025, individuals paid wealth tax if they met two conditions simultaneously:

1. they owned real estate for residential purposes;
2. their total value exceeded 1.5 million MDL and the total area exceeded 120 m² (including share quotas).

Citizens who met the above conditions paid a wealth tax of 0.8% of the cadastral value.

Example: 1,500,000 MDL x 0.8% = 12,000 MDL (annual wealth tax)

How the wealth tax works after 2025

After 2025, the thresholds and criteria for wealth tax have been revised as follows:

• the minimum value for taxation is equal to at least 200 average salaries in the economy, according to the Government's forecasts and decisions;
• for 2026, the average projected salary is 17,400 MDL, which determines a threshold value of 3,480,000 MDL;
• if a taxpayer owns real estate with a cumulative cadastral value above this threshold and together it exceeds 120 m², he may fall under the incidence of wealth tax.

Example: 3,480,000 MDL x 0.8% = 27,840 MDL (annual wealth tax)

Analyzing the examples of real estate above and the new cadastral values, a single person to fall under the incidence of paying Wealth Tax should own at least 3 3-room apartments in an old block or 2 3-room apartments with an area of ​​around 100m2, or a house on the ground floor and a 3-room apartment in a new block.

The increase in cadastral values ​​will practically affect the owners of several properties, those who own a portfolio of apartments or houses, who will be forced to pay a much higher wealth tax than before.

CONCLUSION

The revaluation of real estate is a necessary step for both citizens and the state of the Republic of Moldova, contributing to the updating of a system that no longer reflects current economic realities.

The collection of more correctly calculated taxes will allow the authorities to more efficiently support investments in infrastructure and social programs. At the same time, owners benefit from increased transparency and predictability, as the new cadastral values ​​are closer to real prices on the real estate market.

Author: Victor Cernomorcenco, Real Estate Specialist at Acces Imobil.

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