In brief
An Israeli can buy an apartment or villa in Romania and register the building in his or her own name, without a company. The restriction under Law 312/2005 concerns registering land directly in the name of a non-EU citizen, and for a villa it is usually resolved through a Superficie right. A Romanian company (SRL) can register land, but it adds ongoing costs, company-level tax, dividend tax and tax and reporting questions in Israel.
Key takeaways
- 1The building itself, an apartment or a house, is registered in your name even without a company. Law 312/2005 restricts only the direct registration of land.
- 2For a villa, the land is usually registered through a Superficie right: ownership of the building and an exclusive right to use the land beneath it.
- 3As of October 2026: a micro-enterprise regime of 1% of revenue applies only up to EUR 100,000 and with at least one employee; otherwise corporate tax of 16%, and dividend tax of 16%.
- 4A company controlled by Israelis with passive income and low foreign tax may be treated as a controlled foreign company, and a company managed from Israel may be treated as an Israeli resident.
- 5An SRL makes sense mainly for several properties, land for development or genuine business activity; for a single home it usually adds cost and complexity.
Must an Israeli open a company to buy a home in Romania?
No. An Israeli can buy an apartment or a house in Romania and be registered as the owner in the land register in his or her own name, without a company and without Romanian residence. The question of a company arises only in relation to the land.
The statement "you must open a company" is heard often, and it has a basis, but it is true only in some cases. Anyone who buys a single home and opens a company for it may pay for this every year, and discover in hindsight that the company has also created tax and reporting obligations in Israel.
For a villa, the land is usually registered through a Superficie right: ownership of the building and an exclusive right to use the land beneath it.
Where the company requirement comes from: Law 312/2005
Law 312/2005 restricts the acquisition of land in Romania by persons who are not citizens of the European Union, and therefore an Israeli cannot register land directly in his or her own name. A Romanian company is a Romanian legal person, and it can therefore hold land.
What gets forgotten along the way is that the restriction does not apply to the building. For a villa, the house itself is registered in your name, and for the land beneath it the usual practice is to use a Superficie right (a surface right under the Romanian Civil Code): full ownership of the building and an exclusive right to use the land. The right is registered in the land register, transferable, inheritable and capable of being mortgaged, and it is granted for a period of up to 99 years with an option to renew.
Individual versus company: what is the difference in practice?
| Issue | Purchase in your name | Purchase through an SRL |
|---|---|---|
| Apartment or building | Registered in your name | Registered in the company's name |
| Land | Not directly; usually a Superficie right | Registered in the company's name |
| Financing | Mortgage for non-residents, according to the bank's policy | Loan to the company, on different terms |
| Tax in Romania on sale | 3% of the transaction value up to 3 years of holding, 1% thereafter | Company-level tax on the profit, followed by dividend tax on withdrawal |
| Ongoing cost | No structural cost | Bookkeeping, annual financial statements, registered office, reporting of beneficial owners |
How much tax does a Romanian company pay in 2026?
It depends on whether it meets the conditions of the micro-enterprise regime. As of October 2026, these are the main rules:
- Micro-enterprise regime - 1% of revenue. Only if revenue in the previous year did not exceed EUR 100,000 and the company has at least one full-time employee, or a management contract at no less than the minimum wage. From the quarter in which revenue exceeds the threshold, the company moves to profit tax.
- Standard corporate tax - 16% of profit.
- Dividend tax - 16% from January 2026, compared with 10% previously. Under the tax treaty with Israel, withholding in Romania on dividends is limited to 15%.
A company whose only activity is holding a single home, with no employee, does not qualify for the micro-enterprise regime and will pay standard profit tax. It is advisable to check this condition before building a forecast on a 1% rate.
What happens on the day of sale?
This is where the difference between the two routes is felt most. An individual is taxed in Romania as a percentage of the transaction value: 3% up to three years of holding and 1% thereafter.
In a company, the profit is taxed at company level, and to transfer the money to the owners a dividend must be distributed, which is taxed at an additional layer. A micro-enterprise has a further trap: the sale proceeds count as revenue, so the sale of a single villa may push the company above the EUR 100,000 threshold and into standard profit tax.
What tax questions arise in Israel when holding a Romanian company?
Three questions, which many investors discover only after the company already exists:
- Controlled foreign company (section 75B of the Income Tax Ordinance). Where Israeli residents hold more than 50% of the means of control, most of the income or profits are passive (and rent is a clear example), and the foreign tax on the passive income does not exceed 15%, undistributed profits may be taxed in Israel as if they had been distributed. A micro-enterprise paying 1% of revenue is exactly the case that must be examined.
- Place of management. Under the definition of "Israeli resident" in the Ordinance, a body of persons whose control and management are exercised from Israel is treated as an Israeli resident. A Romanian company all of whose decisions are made in Israel may be treated as an Israeli company for tax purposes.
- Reporting and dividends. An Israeli resident who holds a foreign company attaches Form 150 to the annual return, and the instructions for completing it were updated in Income Tax Circular 4/2026. A dividend is taxed in Israel at 25%, or 30% for a substantial shareholder, with a credit for the tax paid in Romania.
And what if the family lives in a home owned by the company?
This is private use of a company asset, and both tax systems have something to say about it. Before choosing this structure for a home you will live in, ask your tax adviser what the consequences are in each of the countries.
When is an SRL nevertheless the right choice?
- Several properties. From three properties upwards, a single managed structure may be simpler than several private registrations.
- Land for development. When the land is the core of the investment, a Romanian company can register it in its own name. Agricultural land outside the built-up area is subject to additional rules.
- Genuine business activity. A company with employees, services and income that is not solely passive.
For anyone buying a single home to live in or to hold for the long term, private ownership of the building with a Superficie right over the land is usually the simpler and cheaper route.
What to do before signing and how we assist
The decision on the holding structure should be made before the preliminary contract, because a change after registration involves costs and tax. We review both routes with the client in light of the number of properties, the type of land, the financing and the exit plan, and coordinate with a tax adviser familiar with the law of both countries. Incorporating a company, registering the rights and signing the contracts under Romanian law are carried out by lawyers and notaries licensed in Romania.
What is stated here is general information as of October 2026 and is not legal or tax advice for a specific case. Tax laws in Romania and Israel change frequently, and choosing a holding structure requires individual advice before the purchase.
Frequently asked questions
Must an Israeli open a company to buy an apartment in Romania?
No. An Israeli can buy an apartment or a building and be registered as the owner in the land register in his or her own name. Law 312/2005 restricts only the direct registration of land in the name of a non-EU citizen.
How is the land of a villa bought by an Israeli registered?
Usually through a Superficie right, which gives ownership of the building and an exclusive right to use the land for a period of up to 99 years with an option to renew, registered in the land register in your name. A Romanian company is an alternative route, with ongoing costs and company-level taxation.
How much tax does a Romanian company pay in 2026?
Under the micro-enterprise regime, 1% of revenue, provided that revenue did not exceed EUR 100,000 and the company has at least one employee. Otherwise, corporate tax of 16% on profit. A dividend withdrawal is taxed at 16%, and under the treaty with Israel withholding is limited to 15%.
Will a Romanian company save me tax in Israel?
Not necessarily. A company with passive income, controlled by Israeli residents and subject to low tax, may be treated as a controlled foreign company under section 75B, and a company managed from Israel may be treated as an Israeli resident. The structure should be reviewed with a tax adviser before the purchase.
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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.