How to Buy Property in Romania as a Foreigner: 2026 Legal Guide

Romania has become one of Central and Eastern Europe’s most attractive real estate markets, combining relatively affordable property prices with a growing economy, increasing foreign investment and full access to the European Union’s Single Market. Major cities such as Bucharest, Cluj-Napoca, Timișoara, Iași, Brașov and Constanța continue to attract both individual buyers and institutional investors seeking opportunities across residential, commercial, logistics, hospitality and development projects.

However, purchasing property in Romania is not simply a matter of agreeing on a price and signing before a notary. The legal framework differs depending on the type of property being acquired, the buyer’s nationality and whether the transaction includes land. While foreign nationals can generally acquire apartments and buildings without significant restrictions, land ownership is subject to separate legal rules, particularly for investors from outside the European Union. For example, U.S. citizens are treated as non-EU buyers for Romanian land acquisition purposes, making the choice of acquisition structure an important legal consideration from the outset.

This guide explains the Romanian property acquisition process from a legal perspective, covering foreign ownership rules, legal due diligence, taxes, notarial procedures, transaction structures and the most common risks international investors should understand before buying property in Romania.

Can Foreigners Buy Property in Romania?

Yes. Foreigners can buy property in Romania, but the applicable legal rules depend on three key factors: the type of property, the buyer’s nationality and the ownership structure used for the acquisition.

One of the most common misconceptions among foreign investors is that all Romanian real estate transactions follow the same legal framework. In reality, the ownership restrictions, transaction requirements and level of due diligence vary considerably depending on the asset being acquired.

Buying an apartment is generally the most straightforward option for a foreign buyer. However, where ownership of the apartment also includes an undivided share of the underlying land, the legal treatment of that land share should be checked separately, particularly for non-EU buyers. Buying a house usually requires more extensive analysis because the transaction involves two legally distinct assets: the building and the land on which it stands.

The complexity increases further when purchasing urban land for development. In addition to ownership eligibility, the investor should review zoning rules, urban planning documentation, buildability, road access, utilities and any restrictions affecting the intended project. Agricultural land is subject to a separate and more restrictive legal regime, which may include statutory pre-emption rights, local authority procedures and other special conditions.

The key legal distinction is therefore between buildings and land. Buildings and apartments are generally more accessible to foreign buyers, while the acquisition of land is governed by separate rules based on the buyer’s citizenship and legal status.

Buyer Categories at a Glance

Buyer	Apartments & Buildings	Land	Comments
Romanian citizens	✅ Yes	✅ Yes	No nationality restrictions apply.
EU / EEA / Swiss citizens	✅ Yes	✅ Generally yes	Subject to the applicable Romanian legal framework.
U.S. citizens	✅ Generally yes	⚠️ Requires legal analysis	U.S. citizens are treated as non-EU buyers for Romanian land ownership purposes.
Other non-EU citizens	✅ Generally yes	⚠️ Requires legal analysis	Restrictions depend on the property and the proposed acquisition structure.
Foreign companies	✅ Yes	⚠️ Structure should be reviewed	The ownership structure and applicable legislation should be analysed before acquisition.
Romanian companies with foreign shareholders	✅ Yes	✅ Common investment structure	Commonly used for land and development investments, subject to the rules applicable to the relevant type of land.

Practical Tip: Before signing any reservation agreement, pre-contract or sale-purchase agreement, confirm (i) your buyer category, (ii) whether the property includes land, and (iii) whether purchasing personally or through a Romanian company is the most appropriate legal structure. These three factors will largely determine the legal framework applicable to your transaction.

Why Foreign and U.S. Investors Are Looking at Romanian Real Estate

Romania has emerged as one of the most attractive real estate markets in Central and Eastern Europe, offering a combination of competitive acquisition costs, economic growth and increasing demand across multiple property sectors. While prices have risen steadily in recent years, they remain significantly below those of many Western European capitals, creating opportunities for both private buyers and professional investors.

International investors are attracted not only by lower entry prices but also by Romania’s strategic position within the European Union. As a full member of both the EU Single Market and the Schengen Area, Romania offers businesses and investors simplified cross-border mobility, access to a market of more than 450 million consumers and an increasingly stable legal and regulatory environment.

Demand for real estate continues to be supported by the country’s expanding IT sector, growing shared services industry, manufacturing investments and infrastructure projects. Cities such as Bucharest, Cluj-Napoca, Timișoara, Iași, Brașov and Constanța have become important business hubs, attracting multinational companies, skilled professionals and a growing expatriate community.

Foreign buyers invest in Romanian real estate for a variety of purposes, including:

purchasing residential property for personal use or relocation;
generating long-term rental income;
investing in short-term rental properties in major cities and tourist destinations;
acquiring commercial assets such as office buildings, retail units and logistics facilities;
developing residential, industrial or mixed-use projects;
investing in agricultural land or renewable energy projects, where legally permitted; and
diversifying international investment portfolios with exposure to an emerging European market.

Despite these opportunities, attractive prices alone should never be the primary reason for purchasing property. Every investment should be supported by comprehensive legal due diligence to confirm ownership, identify mortgages or other encumbrances, verify cadastral documentation, review zoning and planning restrictions, and assess the tax implications of the proposed acquisition structure.

For larger investments, particularly those involving land, commercial property or development projects, careful planning at the outset can significantly reduce legal and financial risks while ensuring that the transaction is structured in the most efficient manner.

Why Romania Compared to Other European Markets?

Romania’s investment appeal is not based solely on the fact that residential property is cheaper than in many Western European markets. The more relevant consideration is the combination of a comparatively low entry price, active rental demand and continued price and rent growth.

According to Global Property Guide’s April 2026 city-price data, the average residential price in Bucharest was approximately EUR 2,250 per square metre. By comparison, the reported average was EUR 9,490 in Paris, EUR 9,437 in Amsterdam, EUR 7,770 in Vienna, EUR 5,832 in Madrid and EUR 5,387 in Berlin. On this basis, the indicative entry price in Bucharest was approximately 58% lower than in Berlin and more than 76% lower than in Paris or Amsterdam.

Entry Prices and Rental Yields at a Glance

Market	Indicative City Price per Sq. M.	One-Year Price Change	Country-Level Gross Rental Yield
Romania – Bucharest	EUR 2,250	+25.0%	6.02%
Germany – Berlin	EUR 5,387	+1.3%	3.42%
Spain – Madrid	EUR 5,832	+9.7%	5.45%
Austria – Vienna	EUR 7,770	+2.1%	3.82%
Netherlands – Amsterdam	EUR 9,437	+13.0%	5.97%
France – Paris	EUR 9,490	-0.3%	4.83%

Sources: Global Property Guide city price data and national gross rental-yield data, updated between March and July 2026. City prices and national yields measure different parts of each market and should be treated as directional indicators rather than as a direct investment comparison.

The figures illustrate Romania’s main competitive advantage: an investor may obtain exposure to a European capital market at a substantially lower acquisition price than would typically be required in Paris, Amsterdam, Vienna, Madrid or Berlin.

However, Romania should not be presented as uniformly cheaper or more profitable in every segment. Prime locations, newly developed projects and high-demand cities such as Cluj-Napoca can command significantly higher prices, while rental performance varies considerably by city, neighbourhood and property type.

Romanian Residential Prices Continue to Grow

Global Property Guide reported a 12.4% year-on-year increase in Romanian residential prices as of March 2026. The inflation-adjusted annual increase was reported at 5.82% as of December 2025, indicating that nominal price growth was not attributable solely to inflation. Global Property Guide

Separate asking-price data for December 2025 showed a national average apartment price of approximately EUR 1,965 per square metre, representing annual growth of 13.8%. Price levels and annual changes varied substantially among Romania’s principal cities.

Residential Market Snapshot by Romanian City

City	Average Asking Price per Sq. M.	Annual Price Change	Studio Rent	One-Bedroom Rent	Two-Bedroom Rent
Bucharest	EUR 2,204	+16.6%	EUR 390	EUR 600	EUR 850
Cluj-Napoca	EUR 3,235	+9.7%	EUR 400	EUR 590	EUR 700
Brașov	EUR 2,228	+8.3%	EUR 350	EUR 500	EUR 600
Constanța	EUR 1,943	+11.9%	EUR 330	EUR 500	EUR 700
Timișoara	EUR 1,865	+11.2%	EUR 270	EUR 430	EUR 500
Iași	EUR 1,913	+11.1%	EUR 350	EUR 450	EUR 550

Price data reflects average asking prices reported for December 2025. Rent data reflects average monthly asking rents reported for the third quarter of 2025. Asking prices and rents do not necessarily represent final transaction values.

These figures also demonstrate that Romania is not a single uniform property market. Cluj-Napoca had the highest reported average price among the cities assessed, while Timișoara, Iași and Constanța offered lower indicative entry points. Bucharest combined a relatively accessible price compared with Western European capitals with the country’s largest and most diversified rental market.

Rental Yields Vary Significantly by Location

The average gross residential rental yield in Romania was reported at 6.02% in 2026. This placed Romania above the reported averages for Germany, Austria, France and Spain, although close to the Netherlands and below certain other European markets.

Location selection remains important. Global Property Guide’s January 2026 research reported average gross yields of approximately:

8.09% in Galați;
7.52% in Bucharest; and
4.41% in Cluj-Napoca.

This difference is commercially relevant. Cluj-Napoca’s high acquisition prices can compress rental returns even where tenant demand remains strong. Conversely, lower-priced cities or non-prime districts may generate higher gross yields but can involve different liquidity, tenant-demand and resale considerations.

Within Bucharest itself, Global Property Guide reported considerable variation by district and apartment size. For example, reported gross yields for selected studios and one-bedroom units in Titan, Berceni, Militari and Drumul Taberei frequently ranged between approximately 6% and 7%, while larger or more expensive properties in central areas such as Unirii generally produced lower gross yields.

Gross rental yield should not be confused with the investor’s net return. It is calculated before property tax, income tax, maintenance, insurance, vacancy periods, management fees, repairs and financing costs. Global Property Guide notes that net yields may often be approximately 1.5 to 2 percentage points below the reported gross figure, although the actual difference depends on the property and the ownership structure.

Rents Have Also Been Rising

Romania’s rent-price index increased by approximately 7.9% year-on-year in the latest period reported by Global Property Guide. This compared with approximately 4.9% in the Netherlands, 4.5% in Austria, 2.5% in Spain, 2.2% in Germany and 1.9% in France.

Rising rents may support income growth for landlords, but they can also reflect increasing affordability pressure and should not be treated as a guarantee of future performance. Investors should assess whether rent growth is supported by sustainable local demand, employment, population movements, university activity, business investment and available housing supply.

Strong Price Growth Does Not Eliminate Market Risk

The Romanian market recorded strong price growth, but transaction activity moderated during 2025. Global Property Guide reported approximately 159,879 residential unit sales nationwide, a decline of 5.4% from the previous year. Bucharest–Ilfov accounted for approximately 35% of national residential transactions, although volumes in the capital region decreased by around 8.5%.

This combination—rising prices and lower transaction volumes—may indicate affordability pressure and greater selectivity among buyers. It reinforces the importance of evaluating liquidity and exit strategy rather than relying solely on historical price appreciation.

Financing costs should also be taken into account. The reported mortgage interest rate for Romanian housing loans with a long initial fixed-rate period was approximately 6.54% in December 2025. High financing costs can materially reduce leveraged investment returns, even where the gross rental yield appears attractive.

Likewise, a lower property price does not necessarily mean that the overall acquisition and disposal process is inexpensive. Global Property Guide estimates Romania’s combined purchase-and-resale transaction costs at approximately 5.44% to 9.20% of the property value, excluding the purchase price and generally excluding VAT on newly built properties.

What the Comparison Means for Investors

Romania may offer several potential advantages compared with more mature European property markets:

a substantially lower initial capital requirement;
gross rental yields that can exceed those available in several Western European jurisdictions;
continued residential price and rent growth;
multiple city-level strategies rather than reliance on a single market;
opportunities across residential, commercial, logistics and development assets.

These advantages must be assessed against several risks:

substantial differences between cities and neighbourhoods;
financing costs;
inflation and currency exposure;
transaction and ownership costs;
lower liquidity in certain regional markets;
legal and cadastral risks;
planning and permitting restrictions; and
the possibility that rapid historical growth may not continue at the same rate.

Who Can Buy Property in Romania?

Romanian law does not apply the same ownership rules to every buyer. The legal framework depends primarily on the buyer’s nationality, whether the acquisition is made by an individual or a company, and whether the property includes land.

While purchasing an apartment or commercial building is generally straightforward for most foreign investors, transactions involving land require additional legal analysis. For this reason, understanding your buyer category is one of the first steps before starting any real estate transaction in Romania.

Romanian Citizens

Romanian citizens may acquire both buildings and land without nationality-based restrictions. The acquisition process primarily involves verifying the legal status of the property, completing the notarial transfer and registering the ownership in the Romanian Land Book.

EU, EEA and Swiss Citizens

Citizens of European Union Member States, the European Economic Area (EEA) and Switzerland generally benefit from broader rights to acquire real estate in Romania, including both buildings and land, subject to compliance with the applicable Romanian legal framework.

In practice, buyers should still ensure that all legal formalities are properly completed, including identity verification, payment arrangements, notarial authentication and registration of ownership in the Romanian Land Book.

U.S. Citizens and Other Non-EU Buyers

U.S. citizens are considered non-EU buyers for the purposes of Romanian property law.

While apartments, office units and other buildings can generally be acquired without significant restrictions, transactions involving land require separate legal analysis. The applicable legal regime may differ depending on the nature of the property, the buyer’s legal status and the structure chosen for the acquisition.

For this reason, non-EU investors should never assume that purchasing a house with land follows the same legal framework as purchasing an apartment. Where appropriate, alternative acquisition structures such as purchasing through a Romanian company or using other legally recognised arrangements may offer a more suitable solution depending on the investment objectives.

Foreign Companies

Foreign legal entities may also acquire property in Romania, although the appropriate acquisition structure should always be assessed in light of the applicable ownership rules, the nature of the investment and the intended commercial activity.

For larger investments, foreign investors frequently establish a Romanian subsidiary or a dedicated Special Purpose Vehicle (SPV) to acquire and manage the property. This approach is particularly common for commercial real estate, development projects, logistics assets and investment portfolios.

Beyond the acquisition itself, investors should also consider ongoing accounting, tax compliance, beneficial ownership reporting and corporate governance obligations associated with operating through a Romanian company.

What Types of Property Can Foreigners Buy in Romania?

Romania offers a wide range of real estate investment opportunities, from residential apartments and family homes to commercial buildings, development land and agricultural property. However, each asset class presents different legal, regulatory and commercial considerations.

Choosing the right type of property is not only a question of investment strategy—it also determines the level of legal due diligence required, the applicable ownership rules and, in some cases, the most appropriate acquisition structure.

Apartments

Apartments are generally the most accessible type of property for foreign buyers and are often the preferred option for individuals relocating to Romania, purchasing a second home or investing in the residential rental market.

From a legal perspective, apartment transactions are usually more straightforward than acquisitions involving standalone land. Nevertheless, buyers should still verify the seller’s ownership, the Land Book extract, cadastral documentation, homeowners’ association obligations and any existing mortgages or other encumbrances before completing the purchase.

Houses

Unlike apartments, houses typically involve both the building itself and the land on which it is situated. This distinction makes the legal analysis more complex, particularly for non-EU investors.

In addition to reviewing ownership documents, buyers should verify construction permits, cadastral consistency, utility connections, access rights and whether all structures have been lawfully authorised.

Urban Land

Urban land is commonly acquired for residential developments, commercial buildings, logistics facilities or mixed-use projects.

Before purchasing development land, investors should carefully review zoning regulations, urban planning documentation, buildability, utility availability, road access and any restrictions that could affect the intended use of the property.

Agricultural Land

Agricultural land is subject to a distinct legal regime and typically requires enhanced legal due diligence. Depending on the location and characteristics of the property, additional statutory procedures, pre-emption rights and regulatory requirements may apply before the transaction can be completed.

For foreign investors, agricultural land acquisitions should always be preceded by a comprehensive legal review.

Commercial Property

Romania’s commercial real estate market includes office buildings, retail premises, warehouses, logistics facilities, hotels and mixed-use developments.

Unlike residential acquisitions, commercial transactions often require additional analysis of lease agreements, tenant rights, VAT implications, environmental matters and the legal structure through which the investment will be held.

Development Projects

Development opportunities remain one of the main reasons international investors enter the Romanian market.

Whether the project involves residential, commercial, industrial or renewable energy developments, investors should verify from the outset that the land can legally support the intended project. Urban planning regulations, permitting requirements, infrastructure availability and project structuring should all be assessed before any binding agreement is signed.

Comparison of Property Types

Property Type	Typical Buyer	Legal Complexity	Due Diligence Level
Apartment	Individuals, rental investors	Low	Standard
House	Individuals, families	Medium	Enhanced
Urban Land	Developers, commercial investors	High	Extensive
Agricultural Land	Institutional investors, farming, renewables	Very High	Specialist Review
Commercial Property	Companies, investment funds	High	Extensive
Development Projects	Developers, SPVs, joint ventures	Very High	Comprehensive

Step-by-Step Process: How to Buy Property in Romania

Buying property in Romania follows a relatively straightforward process, but the order in which each step is completed is essential. While the legal formalities are generally well established, foreign buyers should avoid rushing into reservation agreements or deposits before the necessary legal checks have been completed.

The following step-by-step guide outlines the typical acquisition process, from identifying the right property to registering ownership in the Romanian Land Book.

Step 1: Define Your Investment Objective

Before searching for properties, you should clearly identify the purpose of your investment. Whether you intend to purchase a permanent residence, a holiday home, a rental property, commercial premises or development land will influence both the legal due diligence process and the most appropriate acquisition structure.

At this stage, it is also advisable to decide whether the property should be acquired personally or through a Romanian company. While many residential purchases are made by individuals, commercial investments and larger projects are often structured through a Romanian Special Purpose Vehicle (SPV) or operating company.

Step 2: Confirm That You Can Acquire the Property

Once you have identified a suitable property, the next step is to confirm that it can be acquired under the applicable Romanian legal framework. This assessment should take into account your nationality, the type of property and whether the transaction includes land.

This step is particularly important for U.S. citizens and other non-EU investors, as different ownership rules may apply depending on the asset being acquired. Addressing these issues early can prevent unnecessary delays later in the transaction.

Step 3: Establish Your Budget

The purchase price represents only part of the overall investment. Buyers should prepare a realistic budget that includes notarial costs, legal fees, Land Book registration fees, taxes, translation costs, financing expenses and any post-completion works that may be required.

Understanding the total acquisition cost from the outset allows buyers to negotiate more effectively and avoid unexpected expenses shortly before closing.

Step 4: Find the Property and Request the Initial Documents

After selecting a property, request the key legal documents before signing any reservation agreement or paying a deposit. These documents will form the basis of the legal due diligence process and allow your lawyer to identify potential risks at an early stage.

At a minimum, buyers should obtain the seller’s title deed, a recent Land Book extract, cadastral documentation and any building-related documents relevant to the transaction.

Step 5: Conduct Legal Due Diligence

Legal due diligence is one of the most important stages of the transaction. Its purpose is to confirm that the seller has valid ownership rights and that the property can be transferred without hidden legal issues.

The review typically includes verifying ownership, identifying mortgages or other encumbrances, reviewing cadastral records, checking building permits where applicable and confirming that the property can be used for the buyer’s intended purpose.

Step 6: Sign the Preliminary Agreement

Where the transaction cannot be completed immediately, the parties often sign a preliminary sale-purchase agreement. This document records the principal commercial terms while allowing time to complete the remaining legal and practical requirements before the final transfer.

A well-drafted preliminary agreement should clearly regulate the purchase price, deposit, completion date, conditions precedent and the circumstances in which the deposit may be refunded if the transaction does not proceed.

Step 7: Prepare for the Notary Closing

Once all legal and commercial conditions have been satisfied, the parties prepare for the final signing before the Romanian notary. During this stage, the required documents are updated, payment arrangements are confirmed and the final sale-purchase agreement is prepared for execution.

Foreign buyers who cannot travel to Romania may often complete the transaction through a properly issued power of attorney, allowing their representative to sign on their behalf.

Step 8: Sign the Final Sale-Purchase Agreement

The transfer of ownership is completed before a Romanian notary public, who authenticates the agreement and verifies that all legal formalities have been fulfilled. Payment is usually made by bank transfer in accordance with the arrangements agreed between the parties.

Once the agreement has been signed and authenticated, the documentation is submitted for registration with the Romanian Land Book.

Step 9: Register Ownership

Ownership becomes fully effective against third parties once the transfer has been registered in the Romanian Land Book. Following registration, the buyer should obtain an updated Land Book extract confirming the new ownership details.

This document serves as the official evidence that the acquisition has been successfully completed and should be retained together with the other transaction documents.

Step 10: Complete the Post-Closing Formalities

The transaction does not end once the property has been registered. Buyers should complete a number of practical and administrative steps, including transferring utility contracts, registering with the local tax authority, arranging insurance and updating homeowners’ association records where applicable.

If the property has been acquired through a Romanian company or is intended to generate rental income, additional accounting and tax compliance obligations may also arise after completion.

Legal Due Diligence Checklist for Foreign Buyers

Legal due diligence is one of the most important stages of any real estate transaction in Romania. Its purpose is not only to confirm that the seller legally owns the property, but also to identify any risks that could affect the buyer’s ownership rights, future use of the property or investment value.

Many legal issues are not immediately apparent from a property viewing or the seller’s representations. Problems such as mortgages, cadastral inconsistencies, unauthorised constructions, easements, ongoing litigation or zoning restrictions may only become apparent after reviewing the legal documentation. Conducting proper due diligence before signing a binding agreement significantly reduces the risk of unexpected disputes or financial losses after completion.

Seller Due Diligence

The first step is to verify that the seller has the legal right to dispose of the property. This includes confirming the seller’s identity, ownership title and, where applicable, the authority of any representative acting under a power of attorney.

Where the seller is a company, additional corporate checks should also be carried out to confirm that the necessary shareholder or management approvals have been obtained and that the company is not subject to insolvency proceedings or other restrictions affecting the transaction.

Typical checks include:

verification of the seller’s identity;
confirmation of ownership rights;
review of any power of attorney;
corporate approvals (where applicable);
insolvency and litigation searches; and
spouse or co-owner consent, where required.

Property Due Diligence

Once the seller has been verified, attention shifts to the property itself. The objective is to confirm that the legal documentation accurately reflects the physical condition of the asset and that no hidden defects or restrictions affect its use or transfer.

Depending on the type of property, this review may include ownership records, cadastral documentation, building permits, urban planning information and utility rights.

Typical checks include:

Land Book extract;
cadastral plans;
title documents;
building permits and completion certificates;
Energy Performance Certificate;
Urbanism Certificate (where relevant);
utility connections;
easements and rights of way; and
cadastral consistency.

Legal Risk Assessment

Even where ownership is valid, the property may still be affected by legal risks that could delay or prevent the transaction or reduce the value of the investment.

A comprehensive legal review should therefore identify any third-party rights, restrictions or ongoing disputes before the buyer becomes contractually bound.

Typical checks include:

mortgages and liens;
court disputes;
enforcement proceedings;
restitution claims;
lease agreements;
tenant rights;
pre-emption rights;
co-ownership restrictions;
heritage or protected-building status; and
zoning limitations.

Financial and Tax Review

Finally, buyers should understand the financial obligations attached to the property before completing the acquisition. Outstanding taxes, unpaid maintenance charges or VAT implications can materially affect the overall cost of the investment.

Where the property is being acquired through a company or for commercial purposes, the legal due diligence should also be coordinated with tax and accounting advisers to ensure the proposed acquisition structure is appropriate.

Typical checks include:

outstanding local taxes;
utility debts;
homeowners’ association debts;
VAT treatment;
agency commissions;
financing conditions;
currency exchange costs; and
estimated post-acquisition expenses.

Buying Property in Romania as a U.S. Citizen

Romania is becoming an increasingly popular destination for U.S. investors seeking residential, commercial and development opportunities within the European Union. While U.S. citizens can legally purchase many types of real estate in Romania, the applicable legal framework differs from that applicable to EU and EEA nationals, particularly where land forms part of the transaction.

The most important principle to understand is that Romanian law distinguishes between ownership of buildings and ownership of the land on which those buildings are situated. This distinction influences how the transaction should be structured and should always be assessed before signing a reservation agreement or paying a deposit.

Buying an Apartment

For most U.S. investors, purchasing an apartment is generally the simplest type of real estate transaction. The acquisition follows the standard Romanian conveyancing process, including legal due diligence, execution of the sale-purchase agreement before a Romanian notary and registration of ownership in the Romanian Land Book.

Although apartment purchases are usually more straightforward than transactions involving standalone land, buyers should still ensure that ownership, cadastral records, mortgages and other encumbrances have been properly reviewed before becoming contractually bound.

Buying a House with Land

Purchasing a house requires additional legal analysis because the transaction generally includes both the building and the underlying land.

While Romanian law allows non-EU citizens to acquire ownership of buildings, the legal regime applicable to the land component is different and depends on the applicable legal framework. Where direct ownership of the land is not available, Romanian law may allow alternative legal structures, such as acquiring ownership of the building together with a right of superficies, which grants the holder the legal right to use the land for the duration established by law or contract. The most appropriate solution should always be assessed based on the specific property and the investor’s objectives.

Buying Through a Romanian Company

For commercial investments, development projects and acquisitions involving significant land components, purchasing through a Romanian company is often the preferred approach.

A Romanian company may provide greater flexibility for managing the investment, financing future developments, bringing in additional investors or transferring the investment at a later stage. At the same time, it introduces ongoing accounting, tax and corporate compliance obligations that should be considered before the acquisition is structured.

Consider U.S. Tax and Reporting Obligations

Acquiring property in Romania may also trigger tax and reporting obligations in the United States.

Depending on the ownership structure and the intended use of the property, U.S. investors should consider matters such as foreign income reporting, ownership of foreign companies, banking compliance, estate planning and the application of the Romania–United States Double Tax Treaty. Romanian legal advice should therefore be complemented by advice from a qualified U.S. tax adviser before completing the transaction.

Buying Property Personally vs Through a Romanian Company

One of the first strategic decisions foreign investors should make is whether to acquire the property in their personal name or through a Romanian company. While both approaches are commonly used, the most suitable option depends on the type of property, the investment objective and the buyer’s long-term plans.

For a single residential property intended for personal use, purchasing as an individual is often the simplest and most cost-effective solution. On the other hand, commercial investments, development projects and larger property portfolios are frequently acquired through a Romanian company, allowing investors to separate business activities from their personal assets and manage the investment more efficiently.

Buying Property Personally

Purchasing property as an individual is generally appropriate for buyers looking to acquire a home, holiday property or a single investment apartment. The acquisition process is relatively straightforward and does not involve the ongoing accounting and corporate compliance obligations associated with operating a company.

However, depending on the buyer’s nationality and the type of property, certain ownership considerations—particularly where land forms part of the transaction—may require additional legal analysis before the acquisition proceeds.

This option is often suitable for:

primary residences;
holiday homes;
individual rental properties;
buyers seeking a simple ownership structure.

Buying Through a Romanian Company

Using a Romanian company is often preferred where the investment has a commercial purpose or is expected to grow over time.

This approach is commonly used for commercial buildings, residential developments, logistics projects, rental portfolios and investments involving multiple shareholders or business partners. A company may also facilitate financing, future expansion and the eventual sale of the investment, particularly where investors intend to transfer shares rather than the property itself.

At the same time, operating through a Romanian company involves additional responsibilities, including accounting, annual financial reporting, tax compliance, corporate governance and beneficial ownership reporting.

This option is commonly used for:

commercial real estate;
development projects;
land acquisitions;
investment portfolios;
joint ventures;
income-generating properties.

Buying Through a Power of Attorney

If you are unable to travel to Romania for the closing, you may appoint a representative through a Power of Attorney (PoA) to sign the sale-purchase agreement and complete the transaction on your behalf.

The Power of Attorney must comply with the legal requirements applicable both in the country where it is executed and in Romania. Depending on the jurisdiction, this may involve notarisation, an Apostille under the Hague Convention or, in certain cases, additional legalization formalities. Because these requirements vary from one country to another, the document should always be prepared or reviewed by a Romanian lawyer before it is signed.

If you would like to learn more about the legal requirements, execution process and international validity of a Romanian Power of Attorney, you can read our dedicated guide on this topic.

Costs of Buying Property in Romania

Understanding the total cost of buying property in Romania is just as important as negotiating the purchase price. Many foreign investors focus exclusively on the property’s asking price and only later discover that additional transaction costs, taxes and professional fees must also be taken into account.

The overall budget will depend on several factors, including the value and type of the property, whether the purchase is financed, whether the buyer acquires the property personally or through a Romanian company, and whether additional legal, tax or translation services are required.

Planning these costs from the outset helps investors avoid unexpected expenses and evaluate the true cost of the investment before committing to the transaction.

Typical Buyer-Side Costs

The buyer is typically responsible for most of the professional and transaction costs associated with completing the acquisition.

Expense	Typically Paid By	Notes
Purchase Price	Buyer	Agreed with the seller
Notary Fees	Usually buyer	Calculated according to the statutory fee schedule and the property’s value
Land Book Registration Fees	Buyer	Payable for registering ownership with the Land Book
Legal Due Diligence	Buyer	Strongly recommended before signing any binding agreement
Lawyer’s Fees	Buyer	Fixed fee or hourly rate depending on the transaction
Certified Translations	Buyer (if required)	Common for foreign buyers and cross-border transactions
Interpreter	Buyer (if required)	Required where the buyer does not understand Romanian
Power of Attorney	Buyer (if applicable)	Where the transaction is completed remotely
Bank Transfer & FX Costs	Buyer	International payments may generate transfer and currency conversion fees
Mortgage Costs	Buyer	Applicable where financing is obtained

While government charges are generally modest, professional fees often represent the most significant transaction costs after the purchase price itself.

Seller-Side Costs That May Influence Negotiations

Although these expenses are normally borne by the seller, they may influence the commercial negotiations and the final purchase price.

Typical seller-side costs may include:

taxes arising from the sale, where applicable;
real estate agency commission;
obtaining the documents required for closing;
mortgage discharge or release costs where the property is encumbered; and
other contractual obligations agreed between the parties.

Understanding the seller’s position can often help buyers negotiate more effectively, particularly in commercial transactions.

Notary Fees and Land Book Registration

Romanian law requires the final sale-purchase agreement to be executed before a Romanian notary.

The notarial fee is generally calculated according to the statutory fee schedule and depends primarily on the value of the transaction. In addition to authenticating the agreement, the notary verifies the legal documentation required for completion and coordinates the registration of the buyer’s ownership in the Romanian Land Book.

Separate Land Book registration fees are payable to record the transfer of ownership. These fees are distinct from the notarial fee and form part of the overall closing costs.

Legal Fees

Although appointing a lawyer is not mandatory under Romanian law, legal representation is strongly recommended, particularly for foreign investors unfamiliar with the Romanian legal framework.

A Romanian real estate lawyer typically assists with:

legal due diligence;
reviewing title documents and the Land Book;
identifying mortgages, litigation and other legal risks;
reviewing and negotiating reservation agreements and preliminary contracts;
advising on ownership structures;
coordinating with the seller, notary, real estate agent and financing institution; and
managing the transaction through to completion.

The cost of legal services depends on the complexity of the transaction, the type of property and the scope of assistance required.

VAT and New-Build Properties

VAT can have a significant impact on the overall purchase price, particularly where the property is acquired from a developer.

Whether VAT applies depends on several factors, including:

whether the seller is VAT registered;
whether the property is considered new or existing for VAT purposes;
the nature of the transaction;
the buyer’s status; and
the intended use of the property.

Because the applicable VAT regime can materially affect the total acquisition cost, investors should confirm the tax treatment before signing any reservation agreement or preliminary contract.

Ongoing Ownership Costs

The financial obligations associated with a property do not end at completion. Depending on how the property is used, owners should also budget for recurring operating costs.

These may include:

annual local property tax;
building insurance;
homeowners’ association charges;
maintenance and repair costs;
property management fees;
rental income tax, where the property is leased; and
accounting and tax compliance costs where the property is owned through a Romanian company.

These recurring expenses should form part of the overall investment analysis, particularly where the property is acquired for rental income or long-term investment.

Financing Your Property Purchase in Romania

While many foreign investors purchase property in Romania using their own funds, mortgage financing is also available in certain circumstances. Whether financing is an appropriate option depends on the buyer’s residency status, income, the lending institution’s internal policies and the type of property being acquired.

Understanding the available financing options early in the acquisition process can help buyers establish a realistic budget and avoid delays once a suitable property has been identified.

Can Foreigners Obtain a Mortgage in Romania?

Yes, although approval is not automatic.

Romanian banks may grant mortgage loans to foreign individuals, including non-residents, provided that the applicant satisfies the bank’s eligibility criteria. Each financial institution applies its own lending policies regarding income verification, credit history, collateral requirements and acceptable documentation.

As a result, financing conditions can vary considerably from one bank to another, making it advisable to discuss financing options before entering into a binding purchase agreement.

Typical Mortgage Requirements

Although requirements differ between lenders, banks commonly request:

proof of identity;
proof of income;
tax documentation;
bank statements;
employment or business information;
valuation of the property;
documentation relating to the property being purchased; and
anti-money laundering (AML) documentation regarding the origin of the purchase funds.

Additional documents may be requested depending on the buyer’s country of residence and the complexity of the transaction.

Financing Through a Romanian Company

Where the property is acquired through a Romanian company, financing may also be available depending on the company’s financial position, the nature of the investment and the lender’s internal requirements.

Commercial financing is generally assessed differently from residential lending, and banks may require additional corporate documentation, financial statements or business plans before approving the transaction.

Plan Your Financing Early

Whether purchasing with cash or through a mortgage, financing should ideally be addressed before signing a reservation agreement or preliminary sale agreement.

Obtaining an initial financing assessment at an early stage allows buyers to determine their purchasing capacity, negotiate with greater confidence and reduce the risk of delays before completion.

Documents Required to Buy Property in Romania

Purchasing property in Romania requires a number of legal and administrative documents, both from the buyer and the seller. The exact documentation depends on the buyer’s nationality, the ownership structure (individual or company), the type of property and whether financing is involved.

Preparing the required documents early in the process helps avoid delays during closing and allows the legal due diligence and notarial procedures to be completed efficiently.

Documents Required from Individual Buyers

Foreign individuals are typically required to provide identification and supporting documentation necessary to verify their identity and complete the transaction.

Depending on the circumstances, buyers may be asked to provide:

a valid passport or national identity card;
proof of address;
tax identification details (where applicable);
marital status documentation, if relevant to the acquisition;
a Power of Attorney, if purchasing remotely through a representative;
declarations requested under Romanian anti-money laundering (AML) legislation; and
supporting documentation regarding the origin of funds, if requested by the notary or financing institution.

Additional documents may be required depending on the buyer’s country of residence and the specific characteristics of the transaction.

Documents Required from Companies

Where the purchaser is a Romanian or foreign company, additional corporate documentation will normally be required.

Typical examples include:

certificate of incorporation or equivalent corporate registration documents;
articles of association;
certificate of good standing or corporate status, where applicable;
corporate resolutions approving the acquisition;
documentation identifying the company’s legal representative;
beneficial ownership information; and
corporate Power of Attorney, where the transaction is completed through an authorised representative.

Foreign corporate documents frequently require notarisation, Apostille or legalization, together with certified Romanian translations.

Documents Relating to the Property

In addition to the buyer’s documentation, the transaction also relies on a comprehensive set of property-related documents that should be reviewed during the legal due diligence process.

These commonly include:

Land Book Extract;
cadastral documentation;
title deeds;
building permits and completion documentation, where applicable;
energy performance certificate;
tax clearance certificate;
homeowners’ association confirmations, where relevant; and
any additional permits or authorisations applicable to the property.

The exact documentation varies depending on whether the property is residential, commercial, newly developed or under construction.

Documents Required for Mortgage Financing

Where the acquisition is financed through a Romanian bank, additional documentation is usually requested as part of the lender’s approval process.

This may include:

proof of income;
employment or business documentation;
bank statements;
property valuation reports;
financing application forms; and
any additional documents required by the lender’s internal policies.

Since each financial institution applies its own requirements, buyers should confirm the documentation checklist directly with the selected bank before submitting their application.

Prepare Your Documentation Early

Many delays in Romanian property transactions occur not because of legal disputes but because required documentation is incomplete or unavailable at the time of signing.

Preparing the necessary documents at the beginning of the transaction enables lawyers, notaries and banks to complete the required legal formalities more efficiently and helps reduce the risk of postponing the closing date.

Agricultural Land, Forests and Extra-Muros Land

Agricultural land, forests and land located outside Romania’s built-up areas (“extra-muros” land) are subject to a legal regime that differs significantly from that applicable to apartments, houses or urban building plots.

For foreign investors, these assets frequently involve additional ownership rules, statutory procedures and regulatory approvals that should be carefully assessed before any binding agreement is signed. A transaction that appears straightforward from a commercial perspective may require substantially more legal analysis depending on the classification, location and intended use of the land.

Unlike residential property purchases, acquisitions involving agricultural or extra-muros land should not focus solely on ownership. Investors should also verify whether the land can actually be used for the intended project, whether additional approvals are required and whether the proposed acquisition structure is legally appropriate.

Agricultural Land

Agricultural land located outside Romania’s built-up areas is governed by a specialised legal framework designed to regulate ownership transfers, protect agricultural use and preserve agricultural land for its intended purpose. As a result, transactions involving agricultural land are generally more complex than the acquisition of apartments, houses or ordinary urban land and often require additional legal analysis before completion.

Understanding Pre-emption Rights

One of the defining features of Romanian agricultural land legislation is the existence of statutory pre-emption rights.

In practical terms, this means that the owner of certain agricultural land cannot always sell the property directly to any buyer of their choice. Before the transaction can proceed, Romanian law grants priority to specific categories of eligible purchasers, who must first be given the opportunity to acquire the land under the same commercial terms and conditions agreed with the proposed buyer.

To comply with this procedure, the proposed sale must generally be published and notified through the competent local authorities. If an eligible pre-emptor exercises its statutory right within the applicable legal timeframe, the seller may be required to complete the transaction with that person instead of the original purchaser.

The categories of persons benefiting from statutory pre-emption rights are established by Romanian law and may include, depending on the circumstances, co-owners, tenants, neighbouring landowners and other eligible persons or entities. Determining whether such rights apply is therefore an essential part of the legal due diligence process.

Forest Land

Transactions involving forests and forestry land require particular attention due to the legal framework governing ownership, environmental protection and sustainable forest management.

Beyond reviewing title documents and cadastral records, investors should determine whether the property is subject to forestry management obligations, harvesting restrictions, environmental protection measures or conservation regimes that could affect its commercial value or intended use. Access rights, protected habitats, existing management plans and infrastructure limitations should also be reviewed before completion.

Where forests form part of a broader investment strategy—such as sustainable timber operations, eco-tourism, renewable energy projects or long-term land banking—specialist legal, environmental and technical advice is generally recommended to assess both legal compliance and commercial feasibility.

Extra-Muros Land

Land situated outside the officially designated built-up area (“extra-muros” land) should never be assumed to be suitable for construction simply because it is advertised as development or investment land.

Before acquiring such property, investors should verify:

the current land-use classification;
the applicable zoning and urban planning documentation;
whether the intended project is legally permitted;
the applicable building parameters and development restrictions;
access to public roads;
the availability of utilities and infrastructure;
easements, rights of way and neighbouring property rights; and
any environmental or planning restrictions affecting future development.

In many cases, additional planning procedures will be required before construction becomes possible. Likewise, the absence of utilities, inadequate road access or restrictive zoning may significantly increase project costs or prevent development altogether.

A plot marketed as “investment land” should therefore never be assumed to be immediately buildable without independent legal and technical verification.

Common Investment Objectives

Foreign investors commonly acquire agricultural, forestry and extra-muros land for a variety of long-term investment strategies, including:

agricultural production;
renewable energy projects;
logistics and industrial developments;
residential or mixed-use developments;
tourism and hospitality projects; and
long-term strategic land banking.

Each investment objective raises different legal, planning and regulatory considerations. A structure that may be appropriate for a photovoltaic park, for example, may not be suitable for a residential development or logistics facility. Similarly, land that is legally suitable for agricultural use may not be eligible for commercial development without additional administrative procedures.

For this reason, the legal feasibility of the intended project should always be assessed before the acquisition rather than after completion.

Why Specialist Legal Review Matters

Transactions involving agricultural land, forests and extra-muros land are generally more complex than standard residential purchases because the legal review extends well beyond ownership verification.

In addition to confirming title, investors should assess planning restrictions, statutory pre-emption rights, environmental regulations, infrastructure availability, utility connections, permitted land use and any sector-specific legislation that could affect the proposed investment. For development projects, legal due diligence should also be coordinated with planning consultants, surveyors and technical advisers to ensure that the land is both legally and practically suitable for its intended purpose.

Early legal due diligence helps identify issues that may materially affect the feasibility, timing or profitability of the investment before significant costs are incurred, allowing investors to make informed commercial decisions before committing to the transaction.

Real Estate Development in Romania

A plot of land advertised as suitable for development may still be subject to planning restrictions, infrastructure limitations or permitting requirements that could materially affect the viability of the project. For this reason, legal due diligence should assess not only ownership but also the property’s actual development potential.

Land Acquisition Strategy

Selecting the right site is only the first step in a successful development project. Investors should evaluate whether the land aligns with the intended use, project size and long-term investment objectives before entering into any binding commitments.

Where multiple plots are required for a larger project, additional considerations such as land assembly, access rights and ownership fragmentation should also be reviewed.

Zoning and Urban Planning

Before acquiring development land, investors should verify the applicable urban planning documentation and confirm how the land may legally be used.

This typically includes reviewing:

the applicable General Urban Plan (PUG);
any Zonal Urban Plan (PUZ), where relevant;
the Urbanism Certificate;
applicable zoning regulations;
building parameters, including height, density and permitted uses.

Planning documentation should always be reviewed before assuming that a proposed project can be implemented.

Building Permit and Regulatory Approvals

Most development projects require one or more administrative approvals before construction can begin.

Depending on the nature of the project, this may include:

obtaining an Urbanism Certificate;
securing a Building Permit;
obtaining environmental approvals, where applicable;
securing utility connection approvals; and
obtaining any additional permits required under sector-specific legislation.

The timing and complexity of these approvals will depend on the location, size and intended use of the project.

Infrastructure and Utilities

A legally developable plot should also be assessed from a practical perspective.

Investors should verify:

access to public roads;
electricity, water, sewerage and gas availability;
telecommunications infrastructure;
easements affecting utility connections; and
any infrastructure works required before construction can commence.

Infrastructure limitations may significantly affect both project costs and implementation timelines.

Construction Contracts and Contractor Due Diligence

Once the project enters the construction phase, selecting reliable contractors becomes as important as acquiring the land itself.

Before signing construction agreements, developers should consider:

the contractor’s legal and financial standing;
previous experience with comparable projects;
contractual allocation of risks;
completion deadlines;
performance guarantees; and
insurance arrangements.

Well-drafted construction contracts can significantly reduce the likelihood of disputes during project implementation.

Financing and Exit Strategy

Development projects should be planned with both financing and exit strategy in mind from the outset.

Depending on the project, investors may consider:

bank financing;
private equity investment;
joint venture structures;
phased development financing; or
institutional investment at later stages.

Similarly, the intended exit—whether through unit sales, long-term leasing or the sale of the completed project—may influence the acquisition structure and contractual arrangements adopted at the beginning of the investment.

Practical Tip

Never assume that a plot marketed as “development land” can automatically be built upon. Before acquiring the property, confirm that the proposed project is legally permissible, that the necessary planning framework is in place and that adequate infrastructure and utilities are available to support the intended development.

Renting Out Romanian Property After Purchase

Many foreign investors purchase property in Romania with the intention of generating rental income rather than using the property for personal purposes. Depending on the location, property type and target tenants, Romania offers opportunities in both the long-term residential rental market and the short-term accommodation sector.

Before acquiring a property for investment purposes, buyers should ensure that their intended rental strategy is legally and commercially viable. Local regulations, tax obligations and building-specific rules may influence how the property can be used after completion.

Long-Term Residential Rentals

Long-term rentals remain the most common investment strategy for residential properties in Romania, particularly in major cities with strong demand from professionals, students and expatriates.

Investors should consider:

entering into a properly drafted lease agreement;
understanding the applicable tax obligations on rental income;
allocating responsibility for utilities and maintenance;
complying with any mandatory registration or reporting requirements, where applicable; and
ensuring that the lease accurately reflects the parties’ rights and obligations.

A well-structured lease agreement can help minimise disputes and provide greater certainty throughout the tenancy.

Short-Term Rentals

Short-term rentals have become increasingly popular in cities with significant tourism and business travel.

Before operating a property as short-term accommodation, investors should verify whether any local regulations, licensing requirements or building rules apply. In apartment buildings, homeowners’ association rules may also affect the use of individual units for short-term rental activities.

Understanding these requirements before purchasing the property can help avoid operational restrictions after completion.

Property Management

Foreign investors who do not reside in Romania often appoint professional property managers to oversee the day-to-day operation of their investment.

Property management services may include:

marketing the property;
tenant screening;
rent collection;
maintenance coordination;
inspections;
utility administration; and
communication with tenants and service providers.

Using a local property manager may improve operational efficiency, particularly where the owner resides outside Romania.

Investment Hotspots

Different Romanian cities attract different categories of tenants and investors.

Bucharest remains the country’s largest business hub, generating consistent demand from corporate tenants, expatriates and international professionals.
Cluj-Napoca and Iași benefit from strong technology sectors and large university populations, supporting long-term residential demand.
Brașov and Constanța attract domestic and international tourism, creating opportunities for holiday and short-term rentals.
Timișoara continues to attract investment through its manufacturing, technology and logistics sectors, supporting both residential and commercial rental demand.

Selecting the right location should form part of the overall investment strategy rather than being based solely on the purchase price.

Tax and Compliance Considerations

Generating rental income may give rise to ongoing legal, tax and administrative obligations depending on the ownership structure and the nature of the rental activity.

Investors should consider:

the applicable taxation of rental income;
local property taxes;
accounting obligations where the property is owned through a Romanian company;
VAT implications, where relevant; and
any reporting obligations arising under Romanian law.

Obtaining legal and tax advice before commencing rental activities can help ensure that the investment remains compliant throughout the ownership period.

Typical Timeline for Buying Property in Romania

The time required to complete a property purchase in Romania depends on the type of property, the buyer’s ownership structure, the availability of documentation and whether financing is involved. While a straightforward residential acquisition may be completed within a few weeks, transactions involving land, development projects or mortgage financing often require additional time for legal review, regulatory procedures and approvals.

Proper planning and early legal due diligence can significantly reduce delays and help ensure that the transaction progresses efficiently from the initial negotiations to post-closing formalities.

Typical Timeframes by Property Type

Transaction Type	Typical Timeframe
Apartment purchase (cash)	A few weeks, provided all documents are available
Apartment purchase (mortgage)	Typically longer due to bank approval procedures
House with land	Additional time for reviewing both the building and the land
Commercial property	Depends on lease reviews, due diligence and financing requirements
Agricultural or extra-muros land	Often significantly longer due to additional legal procedures and approvals
Purchase through a Romanian company (SPV)	Additional time should be allowed for company incorporation, banking and tax registrations where required

These timeframes are indicative only and may vary depending on the circumstances of each transaction.

Conclusion: Buy Property in Romania Safely with Legal Due Diligence

Romania continues to attract foreign and U.S. investors seeking residential, commercial and development opportunities within the European Union. Competitive property prices, a growing economy, expanding business hubs and full Schengen integration have made the country an increasingly attractive destination for both private buyers and institutional investors.

At the same time, purchasing property in Romania involves more than identifying the right investment. Buyers should carefully consider the type of property they intend to acquire, the legal implications of any land component, the most appropriate ownership structure and the tax and regulatory requirements that may apply before and after completion.

Comprehensive legal due diligence remains one of the most important steps in any Romanian real estate transaction. Verifying ownership, reviewing the Land Book, identifying encumbrances, analysing planning restrictions and ensuring that the contractual documentation adequately protects the buyer can significantly reduce legal and commercial risks.

Whether you are purchasing an apartment, a family home, commercial premises, development land or agricultural property, obtaining legal advice before paying a deposit or signing a preliminary agreement can help ensure that the transaction is structured correctly from the outset.

At LegalHunt, we regularly assist international investors throughout every stage of the acquisition process, including:

legal due diligence and Land Book review;
advising foreign and U.S. investors on Romanian property acquisitions;
reviewing and negotiating reservation agreements and preliminary contracts;
assisting with notarial completion and Land Book registration;
structuring acquisitions through Romanian companies and SPVs;
advising on development projects, commercial real estate and land acquisitions; and
providing ongoing legal support following completion of the transaction.

Before you pay a deposit or sign a pre-contract, speak with a Romanian real estate lawyer to confirm that the property can be acquired safely, that the proposed ownership structure is appropriate and that all relevant legal risks have been properly assessed.