Țuca Zbârcea și Asociații SCA
Can anyone (including foreigners) own and occupy real estate in your jurisdiction (including shares in property owning companies)? Are there any restrictions?
Foreign natural persons and legal entities of the European Union/EEA can purchase land under the same conditions as persons from Romania. For the sale of lands for secondary residences or headquarters, starting 1 January 2012, foreign natural persons and legal entities of the European Union/EEA who are not Romanian residents can directly purchase. For the sale of agricultural lands, forests and forest lands: starting 1 January 2014, foreign natural persons and legal entities of the European Union/EEA are entitled to direct purchase. Foreigners from states outside EU/EEA can acquire land under conditions established by bilateral treaties. Foreigners can freely own shares in companies owning real estate properties.
Are there restrictions on lending for the purchase of real estate by foreign companies? If so briefly give an outline?
There are no express restrictions for loans granted for acquisition of real estate. As a general rule, any loans granted to residents by non -residents for a duration longer than 1 year (including those granted for acquisitions of real estate) should be notified to National Romanian Bank with the observance of the standard forms regulated by NBR Regulation 4/2021. Certain categories of amendments brought to such loans should also be further notified to NBR.
Buying
Please provide a short summary of the fees and costs (including tax) relating to buying real estate in your jurisdiction.
From VAT perspective, acquisitions of real estate are subject to VAT or VAT-exempted. Thus sale of old buildings (generally older than 2 years) or non-buildable land benefit from VAT exemption with an option of the supplier to tax.
The standard 19% rate usually applies. There is currently a draft law that increases the standard VAT rate in Romania from 19% to 21% beginning 1 August 2025.
As a simplification method, no physical VAT applies (by way of reverse charge) for transactions between VAT-registered legal entities in Romania.
Other fees may also apply, such as Land Book registration and notary fees. After the purchase, the owner must register the change of ownership with local authorities within 30 days. Non-resident buyers must also complete tax registration to meet local tax declaration and payment requirements.
Owning
Are there taxes applicable to owning real estate and can the burden of the taxes be passed to someone else (e.g. a tenant or an occupier - not being the owner
Real estate taxes depend on the status of the owner (individual/legal entity) and destination and vary between: (i) 0.08% - 0.2% for residential buildings, (ii) 0.2% - 1.3% for non-residential buildings and 0.4% for buildings used in agriculture, (iii) mixed-use buildings are taxed proportionally, and (iv) 2%/ 5% for buildings not revalued in the last 5 years, if revaluation applies. Land tax is calculated based on certain criteria (surface, rank, zone, use). Construction tax is 0.5% applied to the value of buildings, excluding buildings already subject to real estate tax. These taxes must be paid annually in two installments by the property owner. The property owner bears the burden of such taxes unless otherwise agreed with the tenant. Please note that the Romanian Government envisages to change the real estate taxation system with 2026.
Tax Breaks
Are there tax breaks or other incentives for foreigners to buy real estate in your jurisdiction? If so, what are they?
There are certain incentives available to taxpayers in Romania, including foreigners. Local authorities are entitled to grant up to 10% tax discounts for taxpayers who decide to fully settle their annual local taxes on buildings and land by 31 March. Taxpayers who pay the construction tax in full amount until 25 May, also benefit from a 10% tax discount.
How is the ownership of Real Estate evidenced in your jurisdiction?
Real estate titles are made opposable to third parties by registration with the Land Book. The Civil Code provides that the final registration of a certain right with the Land Book shall have a constitutive effect, rather than a opposability effect. However, this rule shall apply after complete implementation of the unitary and mandatory cadastral system (not finalized). A right recorded in the Land Book is presumed to exist, if acquired or created in good faith and lacking any proof to the contrary (registration in the Land Book is not deemed absolute evidence).
Is it possible to keep the identity of owners of real estate confidential in your jurisdiction?
No. In principle, land book excerpts can be requested by any person in relation to area estate if the information on the land book no./ cadaster number of the real estate is known by such person. The land book excerpt will also evidence the identity of the current owner registered with the Land Book.