How Can Foreigners Buy Real Estate in Romania

Investing in real estate can be an attractive option for foreigners looking to establish a foothold in Romania. The country's rich history, vibrant culture, and growing economy make it an appealing destination for property investment. However, it is essential for foreigners to understand the legal framework and regulations governing real estate acquisition in Romania. In this article, I will present you the ways and steps involved in purchasing real estate as a foreigner in Romania.

Options to acquire real estate in Romania

Under Romanian law, the acquisition of real estate by foreigners is regulated by Law no. 312/2005. This law distinguishes between EU and EEA citizens and non-EU citizens.

• EU and EEA citizens enjoy the same rights as Romanian citizens when it comes to buying houses and land. They have the freedom to acquire both the construction and the land without any additional restrictions.

• Non-EU citizens are restricted from purchasing land directly. However, they can acquire the construction on the land by entering into a right of superficies agreement. This agreement grants them the right to build and own the house over the respective land plot. The right of superficies can be agreed with the landowner for a period of 99 years, renewable. This arrangement provides a viable alternative for non-EU citizens who wish to invest in Romanian real estate. Another option for non-EU citizens is to establish a company registered in Romania (such as a limited liability company/ LLC/ SRL) through which they can own both the land and the house. This approach allows foreign investors to have full ownership and control over the property.

Steps to acquire real estate in Romania

If you are a foreigner interested in purchasing real estate in Romania, here are the key steps to follow:

Step 1: Due diligence and legal assistance

Before proceeding with any property transaction, it is crucial to conduct a thorough due diligence verification of the real estate documentation. This process is best carried out with the assistance of a Romanian real estate lawyer who can review the legal status of the property and ensure there are no major legal risks.

Step 2: Get a Personal Identification Code (CNP or NIF)

To engage in any official transactions in Romania, including the purchase of real estate, foreign buyers need to obtain a Personal Identification Code (CNP in case the foreigner has a residence permit in Romania or otherwise a NIF). This code serves as a unique identifier and is required in order to be able to buy the real estate property.

Step 3: Signing the sale contract

Once the due diligence process is complete, and all parties are satisfied with the documentation, the sale contract is signed before a public notary. It is highly recommended to engage a Romanian lawyer to assist in drafting the pre-sale contract and the real estate sale contract. The lawyer will ensure that the contract protects your interests and adheres to all legal requirements.

Step 4: Registering as a new owner

Within 30 days from the signing date of the sales contract, it is mandatory to register as a new owner for tax purposes with the local city hall. This step ensures that the property is officially recognized under your ownership and allows you to fulfill your tax obligations.

Romania offers attractive opportunities for foreign investors interested in acquiring real estate. While EU and EEA citizens can buy houses and land under the same conditions as Romanian citizens, non-EU citizens have certain limitations. However, options such as the right of superficies and establishing a company in Romania enable non-EU citizens to invest in Romanian real estate.

To navigate the legal intricacies involved in purchasing real estate, it is essential to seek the assistance of a qualified Romanian real estate lawyer. In order to do this, you can schedule a consulting session by clicking here.