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Buying Property in Romania as a Non-Resident: Legal Requirements and Pitfalls

The article explains under what conditions non-residents can acquire land and buildings in Romania and which restrictions may still apply. It also outlines essential due-diligence steps on title, encumbrances and urban planning, highlighting the contractual traps and practical risks foreign buyers most often encounter on the Romanian real estate market.

Romania has quietly become one of the most interesting real estate markets in the European Union for both private buyers and investors: relatively low price per square metre compared to Western Europe, improving infrastructure, and one of the lowest recurring property tax levels in the EU. Add to this the fact that foreigners can buy apartments, houses, and (under certain conditions) land, and you have a market that deserves a closer look.

But Romania is also a civil law jurisdiction with some very specific rules: ownership must be registered in the Land Book (Carte Funciară) maintained by the national cadastre authority (ANCPI), there are separate rules for buildings and land, agricultural land comes with pre-emption rights and additional restrictions, and the country is still dealing with restitution of properties nationalised during communism.

This guide is written for EU and non-EU individuals and companies who live abroad but want to purchase apartments, houses, or land in Romania. We will focus on:

  • who can legally own Romanian real estate;
  • how the transaction process actually works (step by step);
  • what costs and taxes you should expect;
  • special risks that foreign buyers often underestimate; and
  • how to manage a Romanian property from abroad.

Important disclaimer: Romanian property, tax, and agricultural land rules change frequently. This article is based on publicly available sources up to late 2025. You should always verify the current law using official sources (for example the Romanian Land Book & cadastre authority ANCPI, the Civil Code, and Law 312/2005) and get tailored advice from a Romanian lawyer before signing anything.

Who Can Own Real Estate in Romania

Rights of EU/EEA Citizens

The starting point is the Romanian Constitution and Law no. 312/2005 on the acquisition of private ownership over land by foreign citizens, stateless persons, and foreign legal entities. From Romania’s EU accession onwards, citizens of EU Member States (and EEA states) are allowed to acquire ownership over land in Romania under the same conditions as Romanian citizens and legal entities. Transitional restrictions that once applied to agricultural land and secondary residences have expired.

In practice this means:

  • EU/EEA (and usually Swiss) citizens can freely buy:
    • apartments and houses (ownership over the building and the relevant land share);
    • urban land (for example, a plot to build a house); and
    • agricultural land, subject to general rules (for example pre-emption under Law 17/2014 for farmland).
  • They do not need Romanian residency or a special visa to buy property. Ownership of real estate does not automatically grant residence rights, although it can be a helpful factor in residence applications in combination with other criteria.

Once registered in the Land Book, an EU or EEA citizen enjoys the same private ownership rights as any Romanian owner. The Civil Code defines private ownership as the right of the holder to possess, use, and dispose of a good in an exclusive, absolute, and perpetual manner, within the limits set by law.

Non-EU Citizens – Buildings vs. Land, Reciprocity and Romanian Companies

For non-EU citizens, the key reference is still Law 312/2005. It distinguishes clearly between ownership of buildings and ownership of land.

Broadly speaking:

  • Buildings: Non-EU citizens can own apartments, houses, and other constructions in Romania without special restrictions. Ownership of the building itself is not limited by nationality.
  • Land: Direct ownership of land by non-EU citizens is more restricted:
    • Law 312/2005 allows third-country nationals to own land only to the extent allowed by international treaties and the reciprocity principle (a non-EU citizen cannot acquire land in more favourable conditions than an EU citizen).
    • For many practical purposes, non-EU citizens can purchase buildings (apartments, houses) and receive a right of use over the land, but not always full direct land ownership in their own name.

Because of these limits, the most common solution for non-EU buyers who want full land ownership (especially for houses with a private plot or for development land) is to buy through a Romanian company (typically an SRL):

  • A Romanian company is a Romanian legal person regardless of the nationality of its shareholders.
  • Romanian companies can acquire any real rights over immovable property (including full land ownership) as needed for their business purpose, subject to the general rules on foreign acquisition of land.
  • Non-EU citizens can own 100% of the shares in such a company.

This structure is widely used in practice and is explicitly mentioned in professional guides aimed at foreign investors. However, if you use a company, you should also consider corporate tax, accounting, and governance obligations.

Foreign Legal Entities Owning Property Directly or via Subsidiaries

Foreign companies have three main ways to own Romanian real estate:

  1. Direct ownership in the name of the foreign company.
    • Foreign legal entities can buy buildings in Romania (for example a warehouse or office) and register ownership directly in the Land Book.
    • Land ownership by foreign legal entities follows the same logic as for foreign individuals under Law 312/2005 (EU vs. non-EU, reciprocity, agricultural land restrictions).
  2. Ownership through a Romanian subsidiary (SRL or SA).
    • This is the most flexible structure for ongoing investment: the Romanian company holds the property, and the foreign parent holds the shares.
    • Law 312/2005 and related corporate law provisions allow Romanian companies (including those owned by foreign shareholders) to acquire any real rights over immovable assets that are necessary for their object of activity.
  3. Indirect ownership through share deals.
    • Instead of buying the property asset directly, a foreign investor can buy the shares of an existing Romanian company that already owns the property.
    • This route raises different due diligence issues (corporate & tax liabilities, not only property title), but can sometimes be more efficient in terms of taxes and transaction structure.

Step-by-Step Process to Buy Real Estate in Romania

1. Due Diligence on the Seller and the Property

Serious due diligence is not optional in Romania, especially if you are buying from abroad. Professional real-estate and legal guides for foreigners consistently recommend engaging a Romanian lawyer or notary before signing any binding documents.

At a minimum, due diligence should cover:

  • Seller identity and capacity – is the seller the registered owner? Are there any co-owners, heirs, or spouses whose consent is required?
  • Corporate status (if seller is a company) – check the Trade Registry extract, directors’ powers, insolvency status, and whether there are shareholder approvals needed for the sale.
  • Property documentation – title deeds, previous sale-purchase contracts, partition agreements, court judgments, urban planning documents, building permits, and utility connections.
  • Compliance with planning & building rules – especially for new developments and renovated properties in Bucharest or major cities.

2. Checking the Land Book (Carte Funciară)

Romania operates a modern cadastre and Land Book system managed by the National Agency for Cadastre and Real Estate Publicity (ANCPI). Ownership, mortgages, easements, and most encumbrances must be registered in the Land Book for each individual property (identified by cadastral number).

Before buying, your lawyer or notary should obtain a recent Land Book extract (extras de carte funciară pentru informare) and analyse at least the following:

  • Title holder – does the name of the seller match the entry in the Land Book?
  • Description of the property – surface, category of land (intravilan / extravilan, agricultural or not), construction details.
  • Encumbrances – mortgages, seizure, pre-notations of litigation, easements, or pre-emption rights recorded against the property.
  • History of registrations – recent changes in ownership or suspicious transactions may warrant deeper investigation.

If you are buying off-plan or in a new building, the cadastral and Land Book situation can be more complex (temporary numbers, subsequent individualisation of apartments). A reputable developer should be able to provide a clear legal and cadastral roadmap.

3. Pre-Contract and Deposits (Promissory Sale-Purchase Agreement)

It is common in Romania to sign a promissory sale-purchase agreement (pre-contract) before the final notarial sale deed. Professional guides for foreign buyers strongly recommend doing this in written form, often notarised, especially where a significant deposit is involved.

Typical features:

  • Parties and property – full identification details and clear description of the property.
  • Price and payment schedule – including currency (often expressed in euro but paid in lei) and bank transfer details.
  • Deposit (advance) – usually 5–10% of the price, but it can be higher in new developments.
  • Conditions precedent – for example:
    • seller obtaining certain documents or clearances;
    • buyer obtaining a mortgage approval;
    • completion of cadastral formalities for new buildings.
  • Deadlines & penalties – what happens if one party refuses to sign the final contract? Romanian law and case law allow for clauses under which a party loses the deposit or must refund double the deposit if they unjustifiably withdraw.

From a foreign buyer perspective, the pre-contract is the right moment to ensure that all due diligence findings are reflected in writing and that you have time to obtain financing and, if needed, a fiscal identification number.

4. Notarial Sale Contract and Registration in the Land Book

Under Romanian law, the transfer of ownership of immovable property (land and buildings) must be concluded through a notarial deed and registered in the Land Book. The notary public plays a central role:

  • verifies the identity and capacity of the parties;
  • checks the Land Book extract at the date of signing;
  • calculates and collects certain taxes on behalf of the state;
  • draws up and authenticates the sale-purchase deed; and
  • submits the deed for registration in the Land Book.

For foreign buyers who cannot be physically present, the sale can be signed through a special notarised power of attorney. If the POA is signed abroad, it normally must be notarised and apostilled or legalised, depending on the country of origin.

The sale is considered fully effective against third parties only once the transfer of ownership is registered in the Land Book. Until then, you may have only contractual rights against the seller.

Transaction Costs and Taxes

Romania does not impose a separate “real estate transfer tax” or stamp duty like some other jurisdictions. However, buyers and sellers must budget for a combination of notary fees, Land Book registration fees, agency commissions, and income tax on the seller’s gain.

Notary Fees

Notary fees in Romania are regulated and generally calculated as a percentage of the declared transaction value, on a sliding scale. The National Union of Notaries and international law firm guides give examples such as:

  • for properties above a certain value (for example more than 600,001 RON), a base fee plus a percentage (e.g. 0.6%) on the amount exceeding that threshold; and
  • lower percentages for lower-value transactions.

In practice, notary fees often range around 0.4–1% of the purchase price, but exact amounts depend on value, complexity and the specific fee table in force at the time of signing.

Land Book Registration Fees

Registration of the sale in the Land Book is subject to separate fees payable to ANCPI. According to up-to-date legal and tax guides, a common pattern is:

  • for individual buyers, around 0.15% of the property value, with a minimum amount;
  • for legal entities, around 0.5% of the property value, again with minimum thresholds.

These percentages can be adjusted by legislation, so they should always be confirmed with the notary or directly via ANCPI’s official tariff list at the time of the transaction.

Real-Estate Agency Commissions

Real-estate agency commissions are a matter of contract. According to market-oriented guides such as Global Property Guide and local brokers, commissions:

  • often range between 2–3% plus VAT of the sale price per side (buyer or seller);
  • are sometimes fully charged to the seller (for example 3–6%) in residential transactions.

Foreign buyers should clarify in writing who pays the agency fee and out of which price before signing any brokerage agreement.

Seller’s Income Tax (Capital Gains Tax)

Romania does not have a special capital gains tax rate for individuals selling properties; instead, the seller pays personal income tax on the transfer. Current practice, as summarised by specialised tax and law firms, is that:

  • for individuals, a typical rule is:
    • a 3% tax on the taxable gain above a non-taxable threshold (widely cited as 450,000 RON), or
    • lower effective rates in some situations, depending on the holding period and legislative changes over time.
  • the tax is usually calculated and withheld by the notary at the time of sale.

These rules have seen several amendments, including adjustments to tax rates and deductions. Always double-check the effective rate and base with a tax adviser at the time of your transaction.

Annual Property Tax After Acquisition

Once you own a property in Romania, you will pay local property tax every year to the municipality where the property is located. Key points from recent tax guides are:

  • property tax is set by local councils within ranges provided by the Fiscal Code;
  • for residential buildings, typical annual tax rates for individuals and companies range roughly between 0.08% and 0.2% of the taxable value;
  • for non-residential buildings, tax is higher, often between 0.5% and 1.3% of the taxable value;
  • land tax is calculated separately depending on location and category;
  • from 2024, a special luxury tax applies to high-value properties above certain thresholds (for example 3% on the value above 2.5 million RON).

Despite these taxes, comparative studies show that Romania remains among the EU countries with the lowest overall burden of recurrent property taxation.

Special Issues for Foreigners

Land vs. Apartment Ownership, Agricultural Land and Pre-Emption Rights

For most foreign buyers, there is a big practical difference between buying a city apartment and buying land (especially agricultural land).

  • Apartments & urban residential units – buying an apartment in a multi-unit building normally means acquiring:
    • ownership over the apartment; and
    • a co-ownership share in the common parts and the underlying land.

    For EU/EEA buyers this is straightforward; for non-EU buyers, the building ownership is not usually restricted, while the underlying land share is treated under Law 312/2005 and related rules (often solved in practice via the building ownership structure itself).

  • Agricultural land and extravilan plots – here, things become more complex:
    • Law 17/2014 introduced a strict pre-emption regime for the sale of agricultural land located outside built-up areas, with several categories of pre-emptors (co-owners, tenants, neighbours, the Romanian state) who must be offered the land first, at the same price and conditions.
    • The procedure involves publication of the offer and waiting periods, and has been tightened by later amendments (for example Law 175/2020).
    • Foreign buyers – including EU/EEA ones – must comply with this pre-emption process if they are buying farmland in Romania.

If you intend to buy land for farming, vineyards, or future development, it is essential to have your Romanian lawyer map out the exact steps of the Law 17/2014 procedure and check whether any pre-emptors are likely to exercise their rights.

Restitution Risks for Communist-Era Nationalised Properties

Romania is still dealing with the long and complex process of compensating previous owners for properties nationalised during the communist regime. The European Court of Human Rights has repeatedly found systemic problems in the restitution mechanism and ordered Romania to provide compensation or return specific properties.

What does this mean for you as a foreign buyer?

  • Some properties – especially historic buildings and land in central urban areas – may have been the object of restitution claims by former owners or their heirs.
  • These claims may appear in the Land Book as annotations (for example pending litigation, claims, or provisional measures) or may have been resolved through administrative decisions that need to be checked.
  • A clean Land Book extract is a good sign but not always the full story; a thorough lawyer will also review:
    • previous restitution decisions affecting the property or area;
    • court files where the property appears as subject-matter; and
    • urban planning documentation, especially in Bucharest and historically sensitive areas.

Buying a property that is still subject to unresolved restitution disputes can lead to years of litigation. This is exactly the type of risk that local legal due diligence is meant to detect and filter out.

Financing: Local Mortgages vs. Foreign Financing

Local mortgages for foreigners. Romanian banks do provide mortgage loans to foreign citizens and non-resident buyers, but professional investor guides note that conditions are often stricter: higher down payment, tighter income documentation, and sometimes requirements for local insurance or guarantors. Banks always require:

  • a valuation of the property by an approved valuer;
  • registration of a mortgage in the Land Book; and
  • compliance with anti-money-laundering (AML) and know-your-client (KYC) checks for both the borrower and the ultimate beneficial owner.

Foreign bank financing. You may also finance the purchase through a bank in your home country. In that case:

  • you must ensure the foreign bank is comfortable registering a mortgage over Romanian property;
  • the Romanian notary must be able to authenticate or recognise the mortgage deed under Romanian law; and
  • you may need separate legal opinions in both jurisdictions.

Whichever route you choose, keep in mind that leasing, rental income, and resale plans all have tax implications in Romania that you should understand in advance.

Fiscal Number (NIF), Currency, and Bank Transfer Rules

Most foreign buyers will need a Romanian fiscal identification number (NIF) before completing a property purchase. Non-resident individuals who have tax obligations in Romania – for example, who own property or earn income from it – must register with ANAF and obtain a NIF, usually by filing a standard tax registration form.

Key points:

  • the NIF is required for tax filings, paying property taxes, and often for notarial documents and bank interactions;
  • if you later obtain Romanian residency and are assigned a personal numerical code (CNP), the tax authorities will usually replace the NIF with your CNP in their records;
  • in some cases, non-residents may also need a fiscal representative in Romania, especially for VAT or complex structures.

Regarding currency and bank transfers:

  • sale contracts are typically expressed in RON, but prices are often negotiated in euro; the notary will require a clear reference exchange rate when necessary;
  • payments above certain thresholds must be made via bank transfer, and banks will apply EU and local AML checks, especially for non-resident buyers and cross-border funds;
  • you should factor in FX costs and ensure your bank can handle RON transfers to the notary’s client account or the seller’s Romanian account.

Managing the Property from Abroad

Once you have bought the property, the next question is how to manage it from another country.

Renting Out the Property

Romania allows non-residents to earn rental income from local properties, but that income is taxable in Romania. From 2024, key features of rental income taxation include:

  • a flat 10% income tax on rental income for individuals, with a standard deduction for expenses (for example 20%), resulting in an effective rate of around 8%;
  • for leases to legal entities, the tenant may have to withhold and pay the tax monthly to ANAF;
  • obligation to register or declare the lease contract with ANAF within 30 days from signing.

Non-resident owners must also consider possible social contributions and the impact of double taxation treaties between Romania and their home country. Professional tax advice is strongly recommended here.

Paying Annual Property Taxes

Annual building and land taxes must be paid to the local tax office, usually in two instalments per year. As explained earlier, rates vary by municipality and by property type, generally between 0.08–0.2% for residential buildings and higher for non-residential buildings.

Because missing deadlines can lead to penalties, many foreign owners appoint:

  • a local accountant to handle tax filings and payments; and/or
  • a local representative under a power of attorney to deal with local authorities and utility providers.

Local Property Manager or Representative

If you do not live in Romania, a reliable property manager is invaluable. They can:

  • manage tenant relations, check-ins and check-outs;
  • organise repairs and maintenance;
  • read meters and pay utilities; and
  • collect rent and forward it to you, subject to any local registration and tax obligations.

For investors with multiple units or a mixed portfolio (residential & commercial), it is common to combine property management with tax representation services from a local accounting or law firm.

Case Study: Expat Buying an Apartment in Bucharest

To illustrate how all this plays out in practice, let’s take a simplified example.

Profile: Maria is an Italian citizen living in London. She wants to buy a 2-bedroom apartment in central Bucharest as a combination of holiday home and long-term investment. Budget: 200,000 euro.

Step 1 – Clarifying Legal Capacity and Strategy

  • As an EU citizen, Maria can buy Romanian land and buildings on the same terms as a Romanian citizen, under Law 312/2005.
  • Because she is buying an apartment (not farmland or development land), questions around agricultural restrictions and company structures are minimal.
  • Her Romanian lawyer still advises her to obtain a NIF so she can easily handle taxes on rental income and annual property tax.

Step 2 – Selecting the Property and Doing Due Diligence

  • Maria visits Bucharest, views several apartments, and chooses a flat in a relatively new building near the city centre.
  • Her lawyer:
    • obtains the Land Book extract for the apartment and the building;
    • verifies that the seller is the sole registered owner and that there are no mortgages or seizures over the property;
    • cross-checks that the building has proper cadastre registration and valid building permits;
    • confirms that there are no restitution claims or litigation registered concerning the building or underlying land.

Step 3 – Pre-Contract and Deposit

  • Maria signs a promissory sale-purchase agreement drafted by her lawyer and notarised in Romania.
  • She pays a 10% deposit (20,000 euro) into the seller’s account, with clear clauses on what happens if either party fails to complete the transaction.
  • The pre-contract includes a condition precedent that the bank approves her mortgage within 30 days.

Step 4 – Financing

  • Maria applies for a mortgage at a Romanian bank, presenting her European income documentation.
  • The bank commissions a valuation, checks the Land Book, and issues a loan approval covering 70% of the price.
  • A mortgage deed will be signed at the same time as the final sale contract and registered in the Land Book.

Step 5 – Final Notarial Contract and Registration

  • At the notary’s office, Maria signs:
    • the final sale-purchase deed; and
    • the mortgage deed in favour of the bank.
  • The notary:
    • checks the Land Book extract again just before signing;
    • collects notary fees and Land Book registration fees from Maria;
    • withholds the seller’s income tax on the sale proceeds; and
    • submits the deeds to the Land Book for registration.
  • Within a few days, the Land Book shows Maria as owner and the bank as mortgage holder.

Step 6 – After Purchase

  • Maria registers with the local tax office in Bucharest to pay annual building tax, using her NIF.
  • She hires a property manager to handle tenants and utilities.
  • Her Romanian accountant files annual tax returns reporting rental income, applying the then-current tax rules.

The result: Maria owns an apartment in an EU capital city, with relatively low annual property tax and a straightforward, fully legal structure.

FAQ: Buying Property in Romania as a Non-Resident

1. Can foreigners buy property in Romania?

Yes. Foreign individuals and companies can buy real estate in Romania. EU/EEA (and usually Swiss) citizens can buy land and buildings on the same terms as Romanian citizens, while non-EU citizens can freely buy apartments and houses but face more restrictions on direct land ownership, which often requires a Romanian company or reciprocity under Law 312/2005.

2. Do I need to be a resident or have a special visa to buy property?

No. Property ownership in Romania is not conditioned on residency or visa status. Foreigners (EU and non-EU) can buy property as non-residents, although owning property does not automatically grant residency or work rights in Romania. Immigration status is governed by separate rules.

3. Can a non-EU citizen own land in Romania?

Non-EU citizens can always own buildings, but direct ownership of land is more restricted. Law 312/2005 allows third-country nationals and foreign legal entities to acquire land only under reciprocity and specific conditions; in practice, many non-EU investors use a Romanian company (fully foreign-owned) to acquire land, particularly for houses with private plots or development projects.

4. How much are transaction costs when buying property?

Total “round-trip” costs (buying and later selling) typically fall in the 5–9% of property value range, according to comparative property tax guides. This includes notary fees, Land Book registration, agency commissions, and seller’s income tax. For the buyer alone, a practical range is often around 1.5–3% of the price, excluding any legal fees and bank charges.

5. Do I need a Romanian tax number (NIF) to buy property?

In most cases, yes. Foreign buyers who have tax obligations in Romania (for example ownership of property, rental income, or capital gains on sale) must obtain a NIF from ANAF by filing a tax registration form. Many notaries and banks will ask for your NIF before signing the final deed.

6. Is it safe to buy property in Romania given the restitution issues?

Yes, but only if proper due diligence is done. Romania has faced long-standing issues with restitution of communist-era nationalised properties, and the European Court of Human Rights has issued several judgments on this topic. A careful check of the Land Book, court records, and any restitution decisions affecting the property is essential to reduce the risk of later challenges.

7. How are rental incomes from Romanian property taxed for non-residents?

Non-resident individuals are taxed in Romania on rental income derived from Romanian property. Recent rules apply a 10% income tax to rental income, with a standard expense deduction leading to an effective rate of around 8%, with specific rules on who withholds and pays the tax when the tenant is a company. Double tax treaties may reduce or eliminate taxation in your home country for the same income.

Call to Action: Get Personalised Legal Help Before You Sign

Romania offers genuine opportunities for non-resident buyers: EU legal framework, relatively low prices and taxes, and the possibility for foreigners to own apartments, houses, and, under the right structure, land. But the same system also has hidden traps: agricultural land pre-emption rights, ever-changing tax rules, unresolved restitution cases, and bank compliance hurdles.

If you are considering buying property in Romania – whether a city apartment, a holiday house or investment land – the most effective next step is to discuss your specific project with a Romanian real-estate lawyer who routinely advises foreign clients. A specialised lawyer can:

  • clarify whether you should buy as an individual or via a Romanian company;
  • check your eligibility to own land based on your nationality and Law 312/2005;
  • carry out full legal & Land Book due diligence on the property;
  • draft and negotiate pre-contracts and the final notarial deed;
  • coordinate with notaries, banks, and tax advisers on NIF, taxes, and registrations; and
  • help you set up safe structures for rental management and eventual sale.

Before you transfer any deposit or sign a contract in Romanian, make sure you have a local lawyer on your side. That is the simplest way to turn an attractive Romanian property opportunity into a secure long-term asset instead of a legal headache.

Key Official Sources and Professional Guides