Essential Real Estate Laws and Regulations in Romania

Published on April 29, 2026 and written by Cyril Jarnias

Navigating Real Estate Laws and Regulations in Romania

Navigating the maze of real estate laws and regulations in Romania can prove to be a complex challenge for both foreign and local investors. This article sheds light on the essential aspects to master, ranging from property rights regulations to tax obligations, as well as requirements related to notarial transactions.

Understanding these key elements is crucial to avoid legal pitfalls and optimize your investments in a booming market, where opportunities are abundant but require in-depth knowledge of legal and administrative rules.

Access to Property: What Foreigners Need to Know

General Legal Framework:

Foreigners can acquire real estate in Romania, but the regime differs depending on nationality, property type, and status (individual or legal entity).

• European Union (EU) and European Economic Area (EEA) Citizens: They enjoy rights similar to those of Romanian citizens for land acquisition, especially for secondary residences or secondary headquarters.
• Non-EU Citizens: They can purchase buildings (apartments, houses), but direct ownership of land remains heavily restricted. To own land, they generally must establish a Romanian company.
• Foreign Companies: Companies established in the EU/EEA can acquire land under the same conditions as EU individuals. Non-EU companies must also create a Romanian entity to hold land.

Table of Accessible Property Types:

Property Type	EU/EEA Citizens	Non-EU Citizens	EU/EEA Companies	Non-EU Companies
Apartments/Houses	Yes	Yes	Yes	Yes
Land (residential or headquarters use)	Yes (with conditions)	No direct (via company)	Yes (with conditions)	No direct (via company)
Agricultural/Forestry Land	Yes (with conditions, preemption rights)	Limited, based on reciprocity and company creation	Yes (with conditions)	Limited, via company

Specific Conditions and Requirements:

• Obligation to obtain a Tax Identification Number (TIN) from the National Agency for Fiscal Administration.
• For agricultural land, compliance with preemption rights and specific procedures established by Law No. 175/2020 (effective 2021), which imposes additional steps and restrictions for sales outside built-up areas.
• Property ownership does not automatically grant residency rights but can facilitate a subsequent application.

Purchase Procedures:

1. Verification of the title deed and absence of mortgages or disputes.
2. Signing a preliminary contract, often accompanied by a deposit.
3. Obtaining a TIN (for foreigners).
4. Signing the sale deed before a notary.
5. Registering the property with the cadastre and paying associated fees.

Applicable Taxes:

• No tax on real estate transactions below 450,000 lei.
• 3% tax on the portion exceeding this threshold.
• Registration fees: 0.15% of the value for individuals, 0.5% for legal entities (minimum 60 lei).
• Notary fees vary based on the transaction value.

Practical Tips:

• Always verify the validity of documents, the cadastral situation, and the absence of debts or mortgages.
• Hire a specialized lawyer or notary to secure the transaction.
• Beware of offers that are too attractive or sellers without clear property titles.
• If necessary, use a local representative via a power of attorney to facilitate the process.

Differences Between Individual and Corporate Rights:

Non-EU individuals generally cannot directly acquire land, unlike Romanian companies (including those owned by foreigners), which can purchase land without restrictions, subject to specific legislation.

Registration fees are higher for legal entities than for individuals.

Recent Legislative Reforms:

Law No. 175/2020 (amending Law No. 17/2014): strengthens the conditions for selling agricultural land, especially outside urban areas, with extended preemption rights and reinforced procedures.

These reforms aim to limit land speculation and protect national interests while regulating foreign investments in the agricultural sector.

Key Takeaways:

Purchasing real estate in Romania remains accessible to foreigners but requires heightened vigilance on legal and tax matters, with notable differences depending on the buyer’s nationality and status.

Guidance from local professionals (lawyers, notaries) is highly recommended at every stage of the process.

Fundamental Laws: Essential Real Estate Regulations

Main laws governing the real estate sector in Romania:

• Property and Housing Law:
  • Law No. 114/1996 on housing, which defines conditions for “adequate” housing, regulates access to social housing, and governs the rights of tenants and owners.
  • Emergency Ordinance 40/1999 for tenant protection.
• Romanian Civil Code:
  • Governs property ownership, sale, acquisition, and contractual obligations related to real estate.
• Urban Planning and Land Management Law:
  • Law No. 50/1991 regulating building and demolition permits.

Law / Standard	Scope of Application	Key Points
Law No. 114/1996	Housing / Property	Rights of tenants/owners; criteria for adequate housing; social housing
Emergency Ordinance 40/1999	Tenant Protection	National legal framework
Romanian Civil Code	Real Estate Transactions	Sale/acquisition/real rights
Law No. 50/1991	Urban Planning/Construction	Building/demolition permits

Acquisition of Real Estate by Foreigners

• Foreign nationals from EU member states can freely acquire land for residential or commercial use in Romania, subject to compliance with certain specific administrative procedures.
• For agricultural land located outside built-up areas (e.g., fields), Law No. 17/2014 imposes a preemption right for certain priority buyers (neighboring owners, local farmers) before any transaction with a foreign buyer. Failure to strictly comply leads to contract nullity.

Tax Obligations Related to Real Estate

Summary list:

1. Annual property tax due by every owner (rate varies by location/type).
2. VAT applicable on purchases from a developer or in certain specific cases.
3. Taxable capital gains upon resale of a property.

Standards Applicable to Constructions

New constructions must comply with:

• National standards defined in the housing law as well as those related to seismic, thermal, and environmental safety,
• The mandatory prior obtaining of a permit issued by the competent local authorities,
• Compliance with local urban plans.

Role of Local Authorities

Structured list:

• Mandatory issuance of permits:
  • Building permit
  • Demolition permit
• Technical control:
  • Verification of compliance with urban/environmental standards
• Local application but legal framework set at the national level

Recent Legislative Reforms & European Impact

Important text:

In recent years, several texts have been amended to harmonize Romanian law with European law (e.g., partial or total transposition concerning international succession – EU Regulation No. 650/2012 –, anti-money laundering through real estate transactions).
European directives are also progressively influencing technical requirements (notably energy performance) as well as certain administrative procedures related to land registration or tax treatment.

Romanian Taxation: Understanding Taxes and Duties for Property Owners

Property Taxes and Duties in Romania

Type of Tax/Duty	Rate/Calculation Method	Specific Conditions/Examples
Building Property Tax	0.1% (residential), 0.5% (non-residential)	Calculated on the taxable value determined by the local authority. Maximum rates eliminated. Standardized based on building type, without distinction of owner status.
Land Property Tax	Variable by zone/location	Depends on area, location (urban/rural), use, and cadastral category; set by each municipality.
Rental Income Tax	Taxation on the entire rent received	Since 2023, the 40% flat-rate deduction has been eliminated. Gross income is now fully taxable at the applicable progressive or proportional rate.
Tax on Property Transfer	3% if held ≤3 years; 1% if held >3 years	No more non-taxable allowance of 450,000 RON: every transaction is taxable from the first RON.

Detailed Explanations:

Property Tax

Every owner must pay an annual property tax, the rate of which mainly depends on:

• The type of building (residential or non-residential)
• Its estimated fiscal value based on local notarial studies
• Specific decisions made by each local authority

Example: For a residential apartment in a city center valued at €100,000, the minimum tax will be approximately €100.

Land Property Tax

The tax varies significantly between urban and rural areas and also depends on the cadastral classification (agricultural, buildable, etc.). A buildable plot in Bucharest can be taxed up to several euros/m²/year.

Rental Income

Since the beginning of January 2025:

• The entire amount received as rent is subject to tax.
• The previous automatic flat-rate deduction has been eliminated.

Example: For an apartment rented for €500/month, i.e., an annual gross income of €6,000, this amount is fully declared.

Property Transfers

In the case of a property sale:

• If held ≤3 years: taxation at 3% of the total price
• If held >3 years: reduced taxation at 1%

There is no longer any allowance for the first few thousand euros/ron received.

List of Main Administrative Obligations:

• Mandatory annual declaration to local tax authorities for any real estate owned as of December 31.
• Payment possible in two installments with typical deadlines at the end of March and the end of September.
• In the case of rental income or sale: declaration in the annual global declaration (“single declaration”). Deadlines are generally set around May to declare income from the previous year.
• When there is a change in ownership or a significant modification (expansion, etc.), there is an immediate obligation to inform the administration under penalty of a fine.

Important Points / Recent Changes:

Total elimination in January 2025:

• Of any difference between individual/professional owners regarding the rate applied to residential/non-residential properties
• Of any “mixed” notion in tax calculation – only the declared main effective use now counts

Possible Tax Incentives/Deductions:

• Very few incentives dedicated to individuals, aside from certain locally subsidized energy works.
• Some occasional local exemptions exist, particularly for the elderly (>65 years), disabled individuals, or recognized social welfare organizations – inquiries should be made with the relevant municipalities.

For any significant real estate investment or specific situation (seasonal rentals, commercial conversion, etc.), it is recommended to seek advice from a local tax specialist.

New Regulations: Keeping Up with Legislative Changes in Romania

The latest legislative developments in Romania regarding real estate regulations reflect a desire to modernize the sector and strengthen the legal security of transactions, while aligning with European standards.

Main Recent Reforms and Laws

• Law No. 331/2024 on the Forestry Code: amendments concerning the management of forest land and environmental protection during real estate transactions.
• Law No. 312/2005 (still in force, recently clarified) on the acquisition of land by foreign citizens and foreign legal entities, with specific modalities for agricultural and forestry land.
• Strengthening of Law No. 7/1996 on the cadastre and real estate publicity, aiming to accelerate the digitalization of land registries and reduce registration times.
• Update of Law No. 17/2014 on the sale of agricultural land outside built-up areas, with increased controls on the origin of funds and buyer transparency to combat speculation.

Proposed Laws and Reforms Under Discussion

• Tax reform project on the taxation of capital gains from the quick resale of real estate (held for less than 3 years).
• Proposal to simplify procedures for the restitution of properties nationalized under the communist regime, with faster financial compensation.
• Discussions on introducing a mandatory enhanced energy audit for any transaction above a certain value threshold.

Administrative and Legal Procedures: Examples of Recent Changes

Procedure	Before Reform	After Reform (2024-2025)
Land Registration	Variable timelines (1-3 months)	Reduced timelines (15-30 days)

Recent developments reflect an increased professionalization of the sector and better protection for all players in the Romanian real estate market, but also impose greater documentary and procedural rigor.