In brief
Proceeds from the sale of a property in Romania reach Israel by bank transfer, after the Romanian notary has collected on the signing day a tax of 3% of the transaction value (up to three years of ownership) or 1% (after that). What determines the speed of the transfer is a document file showing the entire chain of money, from the purchase to the sale. In Israel the sale is reported on Form 1399 within 30 days, and tax is paid on the gain less a credit for the Romanian tax.
Key takeaways
- 1In Romania the tax on a sale is calculated on the transaction value and not on the gain: 3% up to three years of ownership, 1% after that, and the notary collects it on the signing day.
- 2Since 25.2.2026, under Emergency Ordinance 7/2026, the buyer is also required to present a certificate of no outstanding debts to the local authority, and a contract without the certificates is void.
- 3The bank in Israel will ask to see the entire chain: the purchase contract and the transfers made at the time, the sale contract and confirmation of the tax paid in Romania.
- 4In Israel: Form 1399 within 30 days of the sale date, payment of the tax at the same time, and attachment of the form to the annual return.
- 5Is there a Romanian mortgage? Part of the proceeds goes first to repay it and to cancel the encumbrance, so a payoff statement is requested before signing.
Most people planning to sell a property in Romania are focused on the price. The question worth asking alongside it is a more practical one: how will the money get from the buyer in Bucharest to your account in Israel without being held up along the way for a review lasting weeks? The answer is divided into three stations - the notary in Romania, the bank in Israel and the Israel Tax Authority - and each of them has its own requirements.
What is collected from you in Romania on the day the sale is signed?
On the signing day the notary calculates and collects the income tax on the transfer of the property. Under Article 111 of the Romanian Fiscal Code (Law 227/2015), an individual pays 3% of the transaction value if he or she held the property for up to three years, and 1% if he or she held it for longer (as of October 2026). This is a tax on turnover, not on the gain, and it is therefore payable even when there is no gain.
The signing itself takes place before a Romanian notary, who is also the party that holds the documents you will need later. Ask the notary for two things before you leave the office: a copy of the sale contract, and confirmation of the tax collected. These are the first documents that the bank and the Israel Tax Authority will ask about.
Under Article 159 of the Fiscal Procedure Code, the seller presents a tax certificate (certificat de atestare fiscală, a certificate of no outstanding debts to the local authority), or the notary checks the position electronically. Since 25 February 2026, under Emergency Ordinance 7/2026, the requirement also applies to the buyer, and a contract signed without the certificates is void. Make sure in advance that you have no open local tax debts on the property.
Since 25.2.2026, under Emergency Ordinance 7/2026, the buyer is also required to present a certificate of no outstanding debts to the local authority, and a contract without the certificates is void.
Why might the bank in Israel delay the money?
Banks in Israel are obliged, under the Prohibition on Money Laundering Law and the order applicable to banking corporations, to know their customer and to examine unusual transactions. A large amount arriving all at once from abroad is exactly the kind of transaction that is examined. The bank does not only ask “where did this money come from?”, but also “and how was the property that was sold purchased?”.
There is a review on the Romanian side as well: under Law 129/2019 on the prevention of money laundering, banks and notaries in Romania are reporting entities, and they may request explanations of their own.
Which document file should you prepare, and when do you start?
The file starts on the day of purchase, not on the day of sale. Whoever kept the documents throughout the years of ownership submits them in an hour. Whoever did not will be chasing old confirmations from banks in two countries.
| Document | When it is created | Why it is required |
|---|---|---|
| The notarial sale contract for the purchase, and a preliminary contract if there was one | At purchase | Shows what was bought, when and for how much |
| Transfer confirmations (SWIFT MT103) for every payment on the purchase | At purchase | Prove that the money left you and to whom |
| Mortgage documents and confirmation of its repayment | At purchase and at sale | Explain the financing structure and the release of the encumbrance |
| Receipts for taxes in Romania: annual property tax, and tax on rent if you rented out | Throughout ownership | Show that the property was held lawfully |
| The returns you filed in Israel on the property and on the income from it | Throughout ownership | Show continuity of reporting |
| The sale contract and the notary's confirmation of the tax | At sale | The basis for the transfer and for reporting |
| Statements of a Romanian account, if the proceeds passed through it | At sale | Show the receipt of the proceeds |
| A short explanatory letter: what was sold, when and to whom | Before the transfer | Saves repeated questions |
Into which account should the buyer pay: Romanian or Israeli?
There is no single answer. The decision depends on whether you still have obligations in Romania. What matters is that the contract states expressly into which account, in your name, the price is paid.
| Payment into your account in Romania | Payment directly into your account in Israel | |
|---|---|---|
| When it is suitable | When a mortgage, bills or tax need to be settled in Romania | When there are no open obligations in Romania |
| Number of transfers | Two | One |
| What to expect | A review at both banks | The Israeli bank receives a large amount from a foreign buyer and will ask for the entire file |
Note: Israel is not part of the Single Euro Payments Area (SEPA), so the transfer is an international one, with fees on both sides. Cash is not a practical option: under Law 70/2015, cash payments between individuals in Romania are limited to 50,000 lei per transaction.
What is reported to the Israel Tax Authority, and by when?
The sale of real estate outside Israel requires a notice under Section 91 of the Income Tax Ordinance. According to the Israel Tax Authority's service page:
- You file Form 1399 within 30 days of the sale date, a separate form for each property.
- You pay the capital gains tax at the same time as filing.
- You attach the form as an appendix to the annual return (1301) for that year.
An Israeli resident generally pays 25% on the real gain, and receives a credit for the tax paid in Romania by virtue of the tax treaty between the two countries. For a property purchased in euros there are special rules for calculating the gain, so the calculation is done with an Israeli tax adviser before the property is advertised, and not after the money has already arrived.
What happens when a Romanian mortgage still encumbers the property?
In such a case part of the proceeds is first transferred to the Romanian bank, to repay the loan and to cancel the encumbrance in the land book. Ask the bank for a payoff statement before the signing day, and check that the contract specifies how the payment is divided between the bank and you. Only the balance is what will reach your account.
Can you sell and bring the money back without flying to Romania?
Yes. An attorney-in-fact can sign on your behalf before the notary, on the basis of a notarial power of attorney with an apostille and a certified translation into Romanian. Make sure the power of attorney expressly includes the authority to sell, to sign and to receive the proceeds into your account, and not into the account of the attorney-in-fact.
And what do you do with the euros when they arrive?
You can convert them immediately into shekels or keep them in a foreign currency account. The decision is yours, but it is worth comparing the rate the bank offers with the Bank of Israel representative rate on the same day. On amounts the size of a property, the difference in the rate is sometimes worth more than all the fees together.
The sequence of steps, from the decision to sell to the money in your account
- Before advertising: calculation of the tax in both countries with a tax adviser, and assembly of the purchase file.
- Before signing: local certificates of no outstanding debts, and a payoff statement from the bank if there is a mortgage.
- Signing day: signing before a Romanian notary, collection of the sale tax, and receipt of a copy of the contract and confirmation of the tax.
- The proceeds: transfer to the account stated in the contract, on the date stated in it.
- The bank in Israel: sending the file to your banker in advance, before the transfer is made.
- The Israel Tax Authority: Form 1399 and payment of the tax within 30 days of the sale.
- The following year: attaching the form to the annual return.
What to do before selling, and how we accompany you
An orderly sale is planned from the end to the beginning: first you know how much tax will be paid in each country and which documents are missing, and only then do you set a price and a date. We help assemble the document file, review the contract and the payment clauses, and coordinate with the notary and the lawyer in Romania. Acts under Romanian law, such as the signing and the registration, are carried out by a notary and by lawyers licensed in Romania, and the tax calculation in Israel is done by your tax adviser.
What is stated here is general information as of October 2026 and is not legal advice or tax advice for any particular case. Tax rates and bank requirements may change, and the calculation of tax on a property purchased in a foreign currency depends on your personal data.
Frequently asked questions
How much tax is paid in Romania on the sale of an apartment or a villa?
An individual pays 3% of the transaction value if he or she held the property for up to three years, and 1% if he or she held it for longer, under Article 111 of the Romanian Fiscal Code. The notary calculates and collects the tax on the signing day.
Within how long must the sale of a property in Romania be reported in Israel?
Within 30 days of the sale date, on Form 1399, and the tax on the gain is paid at the same time. The form is also attached to the annual return for that year, and a credit is received for the Romanian tax by virtue of the tax treaty.
How can the review at the bank in Israel be shortened?
Send your banker in advance, before the transfer is made, the sale contract, the purchase contract, the transfer confirmations from that time and confirmation of the tax paid in Romania. A transfer the bank was expecting and full documentation shorten the review.
Does the buyer also need a certificate of no outstanding debts in Romania?
Yes, since 25 February 2026 under Emergency Ordinance 7/2026. A contract signed without the required certificates of no outstanding debts is void, so it is worth checking the position with the local authority before setting a date.
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The information in this guide is general in nature and does not constitute legal or tax advice on any specific transaction. Every transaction is assessed on its own facts.