Investing in Real Estate in Romania: An Expat Guide

Published on May 2, 2026 and written by Cyril Jarnias

Investing in real estate abroad can be a rewarding adventure, and Romania, with its unique and rapidly growing opportunities, stands out as a prime destination for expats. Blending modernity with historic charm, the Romanian real estate market offers attractive profitability within a growing economy. However, succeeding in such an investment requires a deep understanding of the region’s specific legal and cultural nuances. This guide aims to accompany you step by step, to turn your dream into a tangible reality while minimizing risks and maximizing potential benefits.

Understanding the Legal Framework for Real Estate for Expats in Romania

Laws Governing Property Purchases by Foreigners

Foreign citizens can purchase real estate in Romania, but under certain conditions.

There is no prohibition on the purchase of apartments, commercial, or industrial buildings by foreigners, who can acquire these properties under the same conditions as Romanian citizens.

For land purchases:

• EU, EEA nationals, and legal entities established in these countries can purchase land only for the construction of secondary residences or secondary headquarters.
• Non-EU/EEA citizens can acquire land through Romanian companies or under certain conditions of reciprocity, in accordance with international treaties.

Types of Properties Accessible to Expats

Legal Procedures During the Purchase

Documents Required from the Buyer:

• Identification document (passport)
• For companies: corporate documents

Mandatory Documents from the Seller:

• Title deed
• Land registry extract
• Energy performance certificate

Main Steps:

• Due diligence: verification of the land registry, mortgages, building permit compliance, and environmental issues.
• Request a Tax Identification Number (TIN) from the National Agency for Fiscal Administration for foreigners.
• Signing the sales contract before a notary.
• Registration of the transaction in the land registry.

Administrative Steps for a Real Estate Purchase by an Expat in Romania

Main Steps to Follow:

• Check eligibility to purchase based on nationality (EU, non-EU, legal entity).
• Select the property, obtain copies of all documents (title deed, cadastral survey, land registration, building permit, urbanism certificate if necessary).
• Conduct a detailed property visit and technical inspection (general condition, seismic risks, cadastral conformity, payment of fees, etc.).
• Hire a specialized lawyer for due diligence: verification of the property’s legal status, absence of debts, document conformity, risk analysis.
• Sign a preliminary sales agreement at the notary’s office, deposit a down payment.
• Sign the authentic deed of sale before a notary.
• Register the property transfer in the land book.
• Declaration and transfer with the tax authorities (ANAF) and utility providers (electricity, gas, water).

Required Documents:

• Valid passport or ID card.
• Romanian Tax Identification Number (TIN), to be obtained from ANAF.
• Latest title deed of the property.
• Cadastral certificate and land book extract.
• Building permit and urbanism certificate, if applicable.
• Energy certificate of the property.
• Proof of up-to-date payment of fees and utility bills.
• Homeowners’ association receipt.
• Seismic risk report for older properties.
• For non-residents: proof of source of funds for the transaction.

Specific Regulations for Foreigners

Note: The purchase of agricultural land outside urban areas by foreigners is subject to Law 17/2014, with preemption conditions, and sometimes additional restrictions.

Financial Implications of the Purchase

Practical Tips to Optimize the Procedure and Reduce Costs

• Compare agency offers and negotiate the commission.
• Hire an independent lawyer to secure the transaction.
• Verify cadastral conformity and any potential debts before any commitment.
• Plan a written and photographic inventory if the property is sold furnished.
• Anticipate the TIN request and the preparation of translated and legalized documents.
• Opt for local financing only if conditions are favorable; otherwise, prefer international financing.
• Negotiate the sharing of notary fees with the seller.
• Use local insurers to compare home insurance rates.
• Check the property’s tax situation with ANAF before signing.

Useful Local or Online Resources

• Notaries and lawyers specialized in real estate law.
• Reputable real estate agencies (e.g., Vantage Properties).
• Official Romanian Cadastre website (ANCPI).
• ANAF (National Tax Administration) for tax procedures.
• Official list of buildings at seismic risk: www.pmb.ro (Bucharest City Hall).
• Romanian mortgage comparators.
• Local real estate classifieds websites (imobiliare.ro, storia.ro).
• Embassies and consulates for administrative assistance for expats.

Guidance from a local professional (lawyer, notary, real estate advisor) is highly recommended to secure the transaction, verify document compliance, and optimize administrative procedures, especially for non-residents.

Good to Know:

Expats wishing to buy in Romania must present a passport, a tax certificate, and a local bank account, while adhering to the substantive rules for foreigners; budget between 3% and 5% of the purchase price for notary fees and taxes, and consult local resources to optimize financing and reduce these costs.

Investment Strategies and Financing for Expats

Financing Options for Expats in Romania

• Mortgages from Romanian banks: Non-residents can obtain mortgages subject to providing proof of stable income and sometimes local residence or employment.
• Loan-to-Value (LTV) Ratio: Generally up to 70% for non-residents, and up to 80% for residents.
• Interest Rates (2025): Between 6% and 8% depending on the term and borrower profile.
• Specialized Brokers: Some brokers, particularly those working with French expats, offer customized solutions, sometimes up to 90% financing, requiring a 10% down payment plus ancillary fees.
• Required Guarantees: Mortgage on the financed property, opening a local bank account for loan and rental flow management.

Popular Investment Strategies to Maximize Returns

• Acquisition in High-Growth Urban Areas: Bucharest, Cluj-Napoca, Timisoara, Constanța – attractive for long-term rentals and capital appreciation.
• Investment in Tourist Areas: Brasov, Sibiu, Black Sea coast, ski resorts – ideal for seasonal (short-term) rentals.
• Student and Professional Rental Market: University cities and tech hubs, high demand for furnished housing.
• Renovation and Resale (“Flipping”): Buying properties to renovate in changing neighborhoods.

Tax Specifics to Consider

• Taxation on Rental Income: Net income taxed at a flat rate (approximately 10%), after deducting allowable expenses.
• Property Tax and Occupancy Tax: Vary by municipality and the cadastral value of the property.
• Capital Gains on Resale: Subject to a tax (generally 3% to 5%) on the difference between the purchase and sale price, with partial exemptions for long-term holding.
• Exemptions/Incentives: Possible tax reductions for renovating historic buildings or investing in certain priority areas.
• Romanian Tax Identification Number (TIN): Mandatory for any purchase, to be obtained from the local tax authority.

Practical Tips for Remote Management

• Local Property Managers: Mandate a real estate agency or independent manager for rental management, rent collection, maintenance, and incident handling.
• Online Platforms: Use digital tools for rent tracking, contract management, and communication with tenants.
• Banking Automation: Set up automatic payments and dedicated accounts for managing financial flows related to the investment.
• Multi-risk Insurance: Take out insurance covering rental risks, unpaid rent, and potential damages.

Recommended Resources and Professionals

Key Takeaway:
Always ensure you check the current legislation, anticipate administrative delays, and prioritize guidance from bilingual professionals who understand the specifics of the Romanian market and expat expectations.

Good to Know:

Expats can access mortgages from Romanian banks even as non-residents, and it is advisable to invest in rapidly growing urban or tourist areas to maximize returns. Consider managing your property remotely via online platforms or local managers, while consulting a specialized advisor to navigate tax specifics and benefit from possible exemptions.

Taxation and Real Estate Wealth Optimization in Romania

The Romanian tax system applicable to real estate is based on a combination of national taxes and local fees, with differentiated rates depending on the nature of the property and the owner’s status. The main types of taxes include:

Since January 2025:

For expats or non-residents:

Local taxation can vary significantly:

Common Tax Optimization Strategies

Using an Appropriate Legal Structure

Leveraging Favorable Local Regimes

Other Possible Mechanisms/Benefits

Recent / Upcoming Tax Reforms

Practical Recommendations for Expats/Foreign Investors

Foreign investors and expats wishing to maximize their returns while remaining compliant with Romanian tax laws are strongly advised to consult a local tax expert regularly. This allows them to fully benefit from evolving mechanisms while avoiding common mistakes related to international taxation.

Good to Know:

In Romania, property tax is calculated on the assessed value of the property, with rates that may differ between residents and non-residents; expats can benefit from legal structures like real estate investment companies to optimize taxation. Some regions offer regional tax incentives, and it is crucial to consult a local tax expert to maximize returns while complying with local laws.

Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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