Romania has emerged as one of the most attractive real estate markets in Central and Eastern Europe, offering unique advantages such as affordability, increasing infrastructure development, and robust legal protection for foreign investors. Whether you’re an individual buyer seeking a second home or a corporate entity looking to develop large-scale residential or commercial projects, Romania has a wide range of opportunities that may suit your needs.

With Romania now fully integrated into the Schengen Area as of January 2025, travel and business operations within the country are more straightforward than ever, granting foreign investors the freedom to move capital, materials, and personnel across borders with minimal hassle. This guide aims to provide you with essential insights into Romanian real estate—covering everything from legal requirements to taxation and step-by-step buying processes—so that you can invest with confidence and clarity.

Economic and Political Stability

One of the key motivators for investing in Romania is the country’s improving economic stability. Over the past decade, Romania has embraced various economic reforms and attracted significant foreign direct investment, leading to positive GDP growth. Its ongoing alignment with European Union standards encourages more transparent business practices, which in turn fosters confidence among international investors. Romania’s full Schengen integration marks a new phase of deeper economic and political cooperation in Europe, further boosting its visibility on the global stage.

Growth in Infrastructure

Romania is channeling substantial funding, much of which is sourced from the European Union, into infrastructure projects. New highways, improved rail connections, and upgraded airports are reducing transit times and making remote areas more accessible. This infrastructure expansion can have a positive effect on local real estate markets, as better connectivity typically raises property values.

Cultural and Lifestyle Appeal

Beyond the financial and economic aspects, Romania’s rich culture and scenic landscapes offer compelling lifestyle advantages. The Carpathian Mountains, the Black Sea coast, medieval Transylvanian towns, and vibrant urban centers like Bucharest provide diverse options for residential and recreational investments. Many foreign investors are also drawn by Romania’s low cost of living relative to other EU countries, making properties here appealing for both holiday homes and permanent residences.

Investing in Real Estate in Romania - BMA Legal

Overview of the Romanian Real Estate Market

1. Romanian Residential Sector

Romania’s residential real estate market is particularly dynamic. Bucharest, Cluj-Napoca, Timișoara, Brașov, and Iași are the primary urban centers, each experiencing robust population growth and a heightened need for modern housing. Over the last few years, there has been a shift in buyer preferences from older, communist-era apartments to newly built, higher-quality flats with modern amenities. This trend presents clear opportunities for developers and individual investors who wish to renovate or build from the ground up.

2. Commercial and Industrial Properties in Romania

Commercial properties—especially office buildings and retail spaces—have become more attractive, thanks to the growth of the IT sector and multinational companies establishing branches in Romania. Industrial parks and warehouses near highways and airports also see demand from logistics and manufacturing firms keen on lowering operational costs while maintaining proximity to major European markets.

3. Agricultural Land and Renewable Energy Projects

Romania possesses large tracts of fertile agricultural land, often at prices significantly lower than in Western Europe. While these lands are ideal for farming, they are also increasingly sought after for wind farms and photovoltaic (solar) parks, due to Romania’s favorable climate conditions. The southern part of the country, for instance, has seen multiple renewable energy initiatives because of higher sun exposure and available acreage.

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Advantages for Individual Buyers

Affordable Property Prices

Romania stands out for having competitively priced properties across its major cities and countryside. Whether you’re hunting for a modest apartment in Bucharest or a picturesque countryside retreat near the Carpathians, the cost per square meter often remains lower than in many other European capitals. This affordability can translate into greater potential returns if the market continues its upward trajectory.

Low Property Taxes

Property taxes in Romania are notably low, typically falling within the 0.08%–0.2% range. What’s particularly advantageous is that this tax is calculated based on the property’s municipal value—a figure that is usually much lower than its true market value. As a result, the annual tax burden on homeowners tends to be quite manageable. This feature makes Romania an attractive place for those interested in long-term or buy-to-let investments.

Ownership Rights for EU/EEA and Non-EU Nationals

  • EU/EEA Nationals
    Citizens of EU/EEA member states enjoy the same ownership rights as Romanian citizens. They can purchase land and buildings without restriction, making the transaction process more straightforward. A fiscal registration in Romania is required before finalizing any sale-purchase agreement.
  • Non-EU Nationals
    Individuals from outside the EU/EEA can directly acquire buildings and apartments, but typically must form a Romanian Limited Liability Company (often referred to as a “SPV”) to purchase land. Their fiscal registration in Romania is required as well before finalizing any sale-purchase agreement. While these extra steps may sound complicated, they are quite standard in practice and help ensure secure, transparent ownership.

Safe Transactions and Land Registry

Romania’s Land Registry (Carte Funciară) is a central database that contains detailed records about properties, including any liens, disputes, or other encumbrances. Prospective buyers or their lawyers can verify the legal status of a property before signing any documents. Additionally, all real estate transactions must be authenticated by a notary public, providing an extra layer of legal scrutiny and protection against fraud.

Opportunities for Developers and Large-Scale Investors

Cost-Effective Construction

Labor and construction materials in Romania are often priced more competitively than in Western Europe, particularly when factoring in quality standards that have risen due to EU regulations. This price advantage can significantly reduce project costs, yielding higher profit margins for developers.

High Demand for Modern Housing

Romania has one of the highest rates of home ownership in the EU—around 94.8%—yet a large segment of the housing stock is outdated. Many families are looking to trade up from older, communist-era apartments to newly constructed units equipped with modern amenities. Developers who can offer well-designed, energy-efficient homes in desirable locations often find a robust market eager to purchase.

Investing in Agricultural Land

In addition to residential and commercial construction, developers may explore agricultural land for large-scale farming initiatives or renewable energy projects. Investors have increasingly turned to rural areas to build wind farms or photovoltaic parks, capitalizing on the country’s favorable geographical and climate conditions. With infrastructure projects making these areas more accessible, now is a prime time to secure land at relatively low prices.

Infrastructure and Connectivity

Romania’s push to modernize its roads, railways, and airports cannot be overstated. Improved connectivity not only benefits residential areas but also opens up new regions for commercial and industrial development. When scouting locations for your next project, analyzing future or ongoing infrastructure improvements can give you a crucial edge in identifying prime spots poised for growth.

 

Legal Framework and Requirements

Who Can Buy Property in Romania?

• EU/EEA Nationals: As mentioned, they have the same rights to purchase land and buildings as local citizens. It is necessary to obtain a fiscal registration number prior to the transaction.

• Non-EU/EEA Nationals: They can directly purchase buildings and apartments. However, for acquiring land, the standard route is to establish a Romanian SPV. This typically involves registering a limited liability company locally. It’s also necessary to obtain a fiscal registration number prior to the transaction.

Special Considerations for Non-EU/EEA Buyers

Non-EU/EEA buyers should be aware of certain nuances, such as the need for translated and authenticated documents, and the potential necessity of having a local representative or power of attorney (POA) granted to someone locally present. These measures ensure compliance with Romanian law and help navigate bureaucratic processes more efficiently.

Ensuring Transaction Safety

1. Title Checks: Performing a Land Registry search is essential. Your lawyer will verify that the seller holds a clear title, and that there are no pending disputes or encumbrances on the property.

2. Due Diligence on the Seller: In addition to examining property documents, it’s equally important to ensure that the seller is indeed authorized to dispose of the asset. Checks may include verifying that the seller has no outstanding court orders, bankruptcies, securities, mortgages or active litigation related to the property.

Role of Notaries and Lawyers

A notary in Romania has an official role in finalizing all real estate transactions. Notaries authenticate the sale-purchase agreement, confirm the identities of the parties, and facilitate the registration process at the Land Registry. Meanwhile, a qualified Romanian lawyer offers deeper scrutiny—reviewing the contract clauses, ensuring the property is free from legal complications, and acting as an advocate for your interests throughout the transaction.

Step-by-Step Guide to Purchasing Real Estate in Romania

1. Define Your Investment Goals

Before starting your property search, determine the type of investment you want. Are you looking for a holiday apartment, a permanent residence, a rental property, or a larger development opportunity? Clarifying your priorities helps you narrow down locations, property types, and budgets.

2. Due Diligence and Preliminary Research

  • Location Analysis: Research neighborhood trends, future development plans, and local amenities.
  • Property Evaluation: Assess the condition, market price, and potential return on investment.
  • Legal Status: Confirm that the property is properly registered and free of legal disputes.

3. Drafting and Reviewing the Sale-Purchase Agreement

Typically, after a price is agreed upon, the parties either sign a preliminary contract (often called a “promissory sale-purchase agreement”) or move straight to the final sale-purchase agreement. In either case, it is essential to involve a lawyer early to ensure that the contract terms are fair and that any contingencies (financing, clear title, inspections) are properly addressed.

4. Notarization and Final Registration

Once the contract is ready, both buyer and seller must appear before a Romanian notary to sign and finalize the deal. The notary will verify the parties’ identities and ensure the agreement complies with Romanian law. Shortly after, the transaction is recorded in the Land Registry, officially making the ownership transfer visible to third parties.

5. Completing the Transaction

Following notarization, the buyer typically settles any remaining balance and receives the keys to the property. It is crucial to keep receipts and documentation in order, as you may need them for tax declarations or potential resale in the future.

1. Define Your Investment Goals

Before starting your property search, determine the type of investment you want. Are you looking for a holiday apartment, a permanent residence, a rental property, or a larger development opportunity? Clarifying your priorities helps you narrow down locations, property types, and budgets.

2. Due Diligence and Preliminary Research

• Location Analysis: Research neighborhood trends, future development plans, and local amenities.
• Property Evaluation: Assess the condition, market price, and potential return on investment.
• Legal Status: Confirm that the property is properly registered and free of legal disputes.

3. Drafting and Reviewing the Sale-Purchase Agreement

Typically, after a price is agreed upon, the parties either sign a preliminary contract (often called a “promissory sale-purchase agreement”) or move straight to the final sale-purchase agreement. In either case, it is essential to involve a lawyer early to ensure that the contract terms are fair and that any contingencies (financing, clear title, inspections) are properly addressed.

4. Notarization and Final Registration

Once the contract is ready, both buyer and seller must appear before a Romanian notary to sign and finalize the deal. The notary will verify the parties’ identities and ensure the agreement complies with Romanian law. Shortly after, the transaction is recorded in the Land Registry, officially making the ownership transfer visible to third parties.

5. Completing the Transaction

Following notarization, the buyer typically settles any remaining balance and receives the keys to the property. It is crucial to keep receipts and documentation in order, as you may need them for tax declarations or potential resale in the future.

Taxation and Financial Considerations

Property Tax

Romania’s property tax system is quite straightforward. The annual property tax rate usually falls between 0.08% and 0.2%, calculated on the property’s municipal value (often significantly below its market price). This low tax rate has been a pivotal factor in luring foreign investors who seek strong returns without a hefty ongoing tax burden.

Corporate Tax for SPVs

If you create a Romanian SPV (especially for land purchase), you’ll be subject to the standard corporate income tax. Romania’s corporate tax rate has historically been competitive within the region. If you plan to run rental or business activities through the SPV, you should also be aware of value-added tax (VAT) considerations and potential double taxation treaties that may reduce your overall tax liability.

Financing Options

  • Local Banks: Some Romanian banks offer mortgages to foreign buyers, though terms can vary depending on your citizenship and credit profile.
  • International Banks: Depending on your home country’s regulations, you may find it easier to secure a loan from a global bank that operates branches in Romania.
  • Private Financing or Partnerships: For larger projects, developers often establish joint ventures with local partners to leverage specialized knowledge of Romanian bureaucracy and market trends.

Capital Gains and Exit Strategy

When you decide to sell, any profit made could be subject to capital gains tax, although the specific rate might differ depending on your country of residence and any applicable tax treaties. It’s advisable to plan your exit strategy from the beginning—whether you plan to resell the property soon after renovation or hold onto it for long-term rental income.

Real Estate Development

Building Permits and Local Approvals

For developers planning new constructions or major renovations, securing building permits is one of the first hurdles to clear. You’ll need:

  • Urbanism Certificate: Defines the conditions and restrictions for construction on a particular plot.
  • Construction Authorization: Official approval from local authorities to begin building.
  • Environmental Permits: Needed if your project could significantly impact the environment (for example, large residential complexes or renewable energy sites).

Navigating the permit application process often requires consultations with architects, civil engineers, and local authorities. Working alongside a Romanian lawyer familiar with real estate development can help streamline these steps.

Using Separate SPVs for Each Project

For developers undertaking multiple projects, forming individual SPVs is often recommended. Each SPV holds only one project, limiting liability and financial exposure. This structure also simplifies the process of selling or spinning off projects later, as you can transfer ownership of the SPV itself rather than dealing with complicated property-by-property transactions.

Market Trends and Feasibility Studies

Prior to acquiring land or beginning construction, thorough market research and feasibility studies are critical. Consider factors like local demand, average property prices, rental yields, and ongoing infrastructure upgrades. With Romania’s growing middle class and the influx of foreign businesses, certain regions may see more rapid property appreciation. A feasibility study, often conducted by local real estate consultants, can help pinpoint the best locations for your project type and budget.

How BMA Legal Can Help

At BMA Legal, we specialize in guiding foreign investors through every aspect of the Romanian real estate landscape. Our services include:

  • Comprehensive Legal Advisory: We can perform a full legal audit on any property, checking the Land Registry records, verifying building permits, and confirming that the seller holds uncontested ownership rights. This due diligence minimizes the risk of litigation or unexpected claims in the future.
  • SPV Formation and Corporate Law Services: For non-EU/EEA citizens, we facilitate the creation of Romanian limited liability companies (SPVs), ensuring compliance with all corporate regulations. We also handle ongoing corporate governance tasks such as tax filings, annual financial statements, and corporate amendments.
  • Transaction Support and Closing Services: From drafting sale-purchase agreements to coordinating with notaries and public authorities, we ensure every phase of the transaction runs smoothly. Our lawyers can represent you or your company during negotiations, offering strategic advice to protect your interests and help you secure favorable terms.

Frequently Asked Questions (FAQs)

For direct land ownership, most non-EU buyers must form a Romanian limited liability company (SPV). However, you can directly purchase buildings or apartments without forming a company. It’s best to consult a lawyer to determine the most efficient ownership structure for your needs.

Depending on factors like due diligence, financing approvals, and scheduling with the notary, the process can range from a few weeks to a few months. Complex cases—such as large development projects—may take longer, especially if you need to secure building permits.

Yes. As an EU member state, Romania aligns its legal framework with European norms, providing transparency and equal treatment for foreign investors. Additionally, mandatory registration with the Land Registry helps prevent hidden liens or outstanding legal issues.

Romania follows standard EU practices for capital flow, allowing foreign investors to transfer profits or rental income out of the country. However, your home country’s tax regulations might apply, and double-taxation treaties can impact your final liability.

Many Romanian legal professionals and notaries speak English, especially in urban centers. However, some official documents may require an authorized Romanian translation. Hiring a bilingual lawyer or translator ensures all paperwork is accurately understood.

Conclusion and Next Steps

Romania’s real estate market presents a compelling combination of affordability, legal security, and growth potential. Whether you’re drawn by the bustling capital of Bucharest, the charm of medieval towns, or the promise of fertile agricultural land, Romania offers diverse options suitable for both private and corporate investors. Low property taxes, the ease of setting up SPVs, and robust legal requirements—including mandatory Land Registry checks—contribute to a transparent and investor-friendly environment.

At BMA Legal, our goal is to make each transaction as seamless and secure as possible. From comprehensive due diligence and contract drafting to company formation and notary coordination, our experienced team of legal professionals is here to support every aspect of your investment journey.

If you’re ready to explore real estate opportunities in Romania, reach out to us today. We look forward to helping you find, purchase, and manage property with confidence, ensuring that your investment goals become a reality in one of Europe’s most promising real estate markets.

Invest in the Romanian Real Estate

Reach out to BMA Legal for assistance

✓ Romania offers a strategic entry to the EU market.

✓ BMA Legal guides you through the process.

✓ Our experts support you on all areas.

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