In brief
Those living outside Romania usually choose between a loan in their country of residence, secured on a property there, and a mortgage from a Romanian bank secured on the purchased property and financing up to 70% of its value. The decision depends less on the interest rate and more on two questions: which property you are willing to charge, and in which currency the debt will be relative to the currency of your income.
Key takeaways
- 1A Romanian bank finances a foreign buyer up to 70% of the property's value, so at least 30% equity is required.
- 2With a loan in the country of residence, the collateral is usually a property there, and the rules are set by the country and the bank.
- 3A gap between the currency of income and the currency of the debt is a risk that does not appear in the interest rate simulation.
- 4Under European Directive 2014/17/EU, for a foreign currency loan the bank must warn when the balance or the instalment moves by more than 20% because of the exchange rate.
- 5When buying off-plan, many pay the construction stages from equity or from a home-country loan and take a Romanian mortgage only at handover.
The first question most buyers ask is where the interest rate is lower. It matters, but it is not the first question. Before comparing offers, it is worth deciding two things: which property you will be willing to charge, and in which currency you want to hold the debt. These two decisions narrow the options more than any difference in interest.
This guide deals with buyers who live outside Romania, and compares five common countries of residence. We have written a separate guide on the detailed comparison between financing in Israel and financing in Romania.
What financing routes are available to a non-resident buying property in Romania?
There are two main routes, and they can also be combined, or the purchase can be made entirely with equity.
- A loan in the country of residence, secured on a property you own there, or an unsecured loan. The amount of financing, the interest rate and the restrictions are determined by the country and the bank.
- A mortgage from a Romanian bank, secured on the property you are buying in Romania. For foreign buyers, financing reaches up to 70% of the property's value, so equity is at least 30%.
| Topic | Loan in the country of residence | Mortgage from a Romanian bank |
|---|---|---|
| The charged property | A property you own in the country of residence, or no collateral | The property purchased in Romania |
| Financing ratio | According to local rules and the value of the property there | Up to 70% of the value of the property in Romania |
| Currency of the debt | Usually the currency of income | Romanian lei or euro, depending on the offer |
| Income check | According to the bank and local regulation | Check of income from abroad under the rules of the National Bank of Romania (BNR) |
| Main documents | The usual documents at your bank | Translated income documents, a Romanian tax identification number and a Romanian bank account |
With a loan in the country of residence, the collateral is usually a property there, and the rules are set by the country and the bank.
Why does the currency matter more than the interest rate?
Because currency risk does not appear in any monthly payment simulation. Properties in Romania are usually priced in euro. A Romanian mortgage can be in lei or in euro. And your income may be in shekels, pounds, dirhams or euro. Any gap between the currency of income and the currency of the debt means that the payment, when calculated in your currency, will change with the exchange rate.
A simple calculation: on a loan of 200,000 euro, if the euro strengthens by 10% against the currency in which you earn, each monthly payment, in terms of your currency, increases by 10%. This is arithmetic, not a forecast, and it is worth running it for a 20% fluctuation as well.
What does European regulation say about a foreign currency loan?
The European Directive on credit agreements for consumers relating to residential immovable property (2014/17/EU) gives the buyer certain protections. Under Article 4, a "foreign currency loan" is a loan in a currency other than the one in which you receive your income or hold the assets from which you will repay it, or other than the currency of the Member State in which you reside.
Under Article 23, for such a loan Member States must ensure one of two arrangements: a right to convert the loan into another currency, or another mechanism that limits exchange rate risk. In addition, the bank must warn the borrower on a regular basis if the balance or the instalment changes by more than 20% because of the exchange rate. It follows that someone who earns in euro and takes a mortgage in lei holds, by definition, a foreign currency loan.
What did we check about financing in each country of residence?
The table summarises general points from official sources in each country. It does not say that your bank will agree to finance a purchase in Romania. That depends on the bank and on the purpose of the loan, and you need to ask in advance.
| Country of residence | Currency of income | Common route in the country of residence | Point from an official source | Currency of the debt versus a Romanian loan |
|---|---|---|---|---|
| Israel | Shekel | An all-purpose loan secured on an apartment in Israel | The Bank of Israel limits an all-purpose loan to a percentage of the value of the charged apartment | Both lei and euro differ from the currency of income |
| Germany | Euro | A loan from a German bank, for example secured by a charge on a property in Germany | A consumer loan secured on immovable property is defined in the German Civil Code (BGB, Section 491(3)), and for such a loan in a foreign currency there is a right of conversion (Section 503) | Euro: no gap. Lei: foreign currency |
| France | Euro | A housing loan from a French bank | According to the French government's answer to the National Assembly, the decision of the HCSF (High Council for Financial Stability) limits the repayment burden to 35% of income and the term to 25 years, with flexibility for 20% of loans | As in Germany |
| United Kingdom | Pound | A loan secured on a home in the United Kingdom | No specific rule was checked. Ask the bank whether the money may be used for a purchase abroad | Both lei and euro differ from the currency of income |
| United Arab Emirates | Dirham | A loan from a bank in the UAE | The dirham is pegged to the dollar. The central bank's reference rate is 3.6725 dirhams to the dollar | The actual risk is the euro exchange rate against the dollar |
The restrictions in France are described according to a published official answer, and may have been updated since. In every country, check with the bank what applies on the day the application is filed.
Is it possible to finance without interest, through Islamic financing?
Buyers from the Gulf states and from Muslim communities in Europe often ask this. We did not find a Romanian bank that currently advertises a housing finance product compliant with Islamic law, and we therefore do not recommend such a product. The practical options are financing from an Islamic bank in the country of residence, if it offers a facility suited to this purpose, or a purchase entirely with equity. In any case, it is advisable to obtain a written answer from the bank before committing to a transaction.
How do you combine financing when buying off-plan?
When buying off-plan, the construction payments fall due before the property is complete. In many cases a Romanian mortgage is granted only when a completed property can be charged, and therefore some buyers finance the payments during construction from equity or from a loan in the country of residence, and take a Romanian mortgage at handover. This structure must be coordinated in advance with both banks: what each one finances, and when it releases money.
Seven steps before choosing a financing route
- Decide what you are willing to charge: the property in your country of residence, or only the property in Romania.
- Compare the currency of income with the currency of the debt, and calculate what will happen to the payment if the exchange rate changes by 10% and by 20%.
- Ask the Romanian bank for a written offer: financing ratio (up to 70% for foreign buyers), currency, interest rate and list of documents.
- Ask the bank in your country of residence whether the loan may be used for a purchase abroad, and which documents will be required.
- Prepare an orderly source of funds file for the equity of at least 30%.
- Coordinate a timetable: when each payment is due, and when each bank releases money.
- Consult a mortgage adviser and a tax adviser in your country of residence, and an independent lawyer in Romania.
Before signing: how we accompany the financing stage
Financing from abroad is a question of collateral and currency, not only of interest. We help buyers structure the contract so that the payment schedule matches the release of funds by the banks, and prepare the questions for the Romanian bank, the bank in the country of residence and the advisers. The signing of the mortgage agreement and the registration of the charge in Romania are carried out by a locally licensed notary and lawyer.
This article is general information, current as of October 2026, and is not legal, tax or financial advice. Financing terms are set by each bank according to the borrower's profile. Before any transaction, it is advisable to consult a mortgage adviser, a tax adviser and an independent lawyer.
Frequently asked questions
How much does a Romanian bank finance for a foreign buyer?
Up to 70% of the property's value, so equity is at least 30%. The final amount also depends on income and on the bank's assessment, under the rules of the National Bank of Romania.
Can a bank in my country of residence take a charge over the property in Romania?
Most banks prefer collateral in their own country, such as an apartment or a house. If you want the collateral to be the property in Romania, the common route is a mortgage from a Romanian bank.
I earn in euro. Is a mortgage in lei considered a foreign currency loan?
Yes, under the definition in Directive 2014/17/EU, because the currency differs from the one in which you receive income. Such a loan carries a right of conversion or a mechanism to limit the risk, and a duty on the bank to warn when the exchange rate changes the balance or the instalment by more than 20%.
Is there a Romanian bank that offers Islamic housing finance?
We did not find a Romanian bank that currently advertises such a product. You can check with an Islamic bank in your country of residence whether it has a facility suited to a purchase abroad, and obtain a written answer.
Can the construction stages and the balance be financed in different ways?
Yes. Many buyers pay during construction from equity or from a loan in their country of residence, and take a Romanian mortgage at handover. This is coordinated in advance with both banks.
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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.